Board Statement

Centrica PLC
16 July 2002

15th July 2002





The Board of Directors of Centrica plc has noted recent market speculation and
dismisses any such speculation as being without foundation.

Prior to the announcement of Centrica's Interim Results for the six months to
30th June 2002, the Board believes that it is appropriate to clarify specific
issues which appear to have given rise to market speculation.

The Board is confident that Centrica's accounting policies and their application
together with its financial and risk management controls are entirely
appropriate for its businesses.

The Board has no plans to curtail its energy trading activities in the UK,
Continental Europe or North America. These activities are primarily undertaken
to support the downstream customer focused businesses and we are confident of
their continuing contribution to the Group results. The Board has set
appropriate counter-party exposure levels and value at risk limits for the Group
as a whole. The value at risk limit is currently £25 million and as at Friday
12th July the Group was operating well below that limit. In respect of Duke
Energy the Group's counter-party exposure is less than £5 million.

Yesterday's announcement of the acquisition of customers in Pennsylvania and
Ohio from New Power Holdings, Inc. reinforces the Board's commitment to North
America. The decision by the Texas Public Utility Commission to postpone
approvals for tariff increases was not unexpected and will not materially affect
Centrica's growth ambitions in North America.

The Board also wishes to confirm that it has no plans to issue any shares for
cash.

Finally, the Board confirms that it is confident that the Company's track record
of meeting market expectations will continue.



                      This information is provided by RNS
            The company news service from the London Stock Exchange