Netherlands Tolling Agreement Signed

Centrica PLC
                  CENTRICA PLUGS INTO 400 MEGAWATTS OF DUTCH POWER

Centrica plc today announced that it has signed an agreement giving it the
rights to the entire output of a planned 400 megawatt power station to be built
by InterGen in the Netherlands. The tolling arrangement will run for 15 years
with an option to extend for a further five.

InterGen is intending to build, own and operate the proposed gas-fired plant,
'Rijnmond 2' near Rotterdam, on the same site as its existing 800 MW gas fired
plant 'Rijnmond 1'.

InterGen has gone out to tender on an engineering, procurement and construction
contract which is scheduled to complete by September 2009 with first output
expected in 2009 -10.

Under the contract signed by Centrica and InterGen, once construction is
complete, Centrica would supply the gas required to fuel the plant and would
have the rights to the entire output.

In the Netherlands Centrica already owns Oxxio, a gas and electricity supplier
with approximately 640,000 customers. The Rijnmond 2 plant would be a valuable
addition to this business; its power output would be equivalent to approximately
80 per cent of Oxxio's current peak electricity demand.

Centrica views the Netherlands as a key market, given its proximity to the UK,
which is being liberalised more quickly than elsewhere in Continental Europe.

Jake Ulrich, Centrica's managing director of Europe, said:

'Rijnmond 2 will be a highly efficient and low cost generation asset to
complement our Oxxio business.

'This deal strengthens our business partnership with InterGen and builds on our
current tolling agreement with their 860MW capacity power station at Spalding in
the UK.'

Inquiries:

Mike Dennehy, Centrica media relations, 01753 494 086

Kieran McKinney, Centrica investor relations, 01753 494 900

Notes to editors:

1. Centrica has lower CO2 emissions per sale than its main competitors and is
the largest supplier of green electricity to UK customers through its British
Gas brand. It also has the lowest emitting fleet of power stations of any major
energy supplier and is developing the UK's newest and most efficient gas fired
power station at Langage in Devon. Our renewable investment of around £750m and
a project which could see the lowest emitting fossil fuelled power station ever
seen in the UK will continue to help reduce Centrica's carbon footprint.

2. Centrica owns British Gas, the UK's biggest household gas and electricity
supplier with approximately 16.6 million customer accounts as at end June 2006.

3. Centrica already has a 17 year tolling agreement with InterGen in the UK,
giving it the rights to the 860MW capacity at Intergen's gas-fired power station
at Spalding, Lincolnshire.

4. InterGen is a joint venture between Ontario Teachers' Pension Plan and AIG
Highstar Capital II.

5. The Netherlands is the fourth biggest gas market in Western Europe with
annual consumption of approximately 50 billion cubic metres (bcm). It is at the
centre of European gas flows and plays a key role in the transportation of gas
to the UK.