Acquisition

Centrica PLC
                  

Centrica acquires Canadian automation and controls company

Centrica plc today announced that its North American subsidiary, Direct Energy
Business Services (DEBS), has acquired BASE Controls Limited (BASE), a privately
owned Canadian automation and controls company, for a consideration of C$14.2
million (£6.3 million) in cash.

BASE is a specialist energy management company which provides commercial
customers with technological solutions to manage their heating and cooling
needs. The acquisition will support DEBS' strategy of providing a total energy
solution to commercial customers in North America by bundling energy, servicing
and energy management technology. It will also improve DEBS' ability to
penetrate the larger commercial building sector and target new constructions
with an enhanced energy offering.

BASE, is headquartered in Ontario and provides access to specialist technology,
important distribution agreements, and management expertise. It will also
support the continued growth of DEBS, which has already won a number of national
commercial accounts since it was launched in 2003.

Deryk King, Managing Director of Centrica North America said: 'Today's
acquisition allows us to offer a differentiated and improved product bundle as
we continue to grow our Business Services operation, which will be one of the
key drivers of future revenue growth in North America.'

For the year ended 31 July, 2004, BASE reported revenue of C$22.1 million (£9.8
million) and EBITA of C$2.5 million (£1.1 million), and is expected to be
earnings enhancing in the first year.

Enquiries:

Centrica Media Relations 01753 494085
Centrica Investor Relations 01753 494900