Disposal

Centrica PLC
                  

Centrica sells holding in The Consumers' Waterheater Income Fund

Centrica plc today announced that its Direct Energy subsidiary in North America
has sold its remaining 19.9 per cent. equity holding in The Consumers'
Waterheater Income Fund (CWIF) (TSX: CWI.UN) in Canada for C$133 million (£65
million).

The sale was made to a syndicate of Canadian banks for onward sale to retail and
institutional investors.

This transaction does not impact Direct Energy's long term services and
administration agreements with CWIF, which remain a significant component of
Direct Energy's home services business in Canada.
  
The decision by Centrica to sell follows a previous reduction in its holding
from 41.9 per cent. to 19.9 per cent. in April 2003.
Inquiries:
Centrica investor relations: 01753 494900
Centrica media relations: 01753 494085