Joint Venture Announced with Essent
Centrica PLC
17 February 2000
Centrica Plc
European Trading Joint Venture Announced
Centrica plc and Essent N.V. have today announced the
formation of a joint venture, Access Energy B.V., to develop
wholesale energy trading in the Netherlands, Belgium and
Germany.
Access Energy, in which Centrica and Essent will each have a
50% interest, will be incorporated in The Netherlands and
will undertake wholesale energy trading activities in these
markets.
Centrica is already the leading European wholesale gas
trader. The joint venture, which will also offer significant
electricity trading opportunities, is a further step towards
fulfilling Centrica's ambition of becoming a leading energy
trader in Europe.
The combination of Essent's strong position in the Dutch
energy market and Centrica's expertise in trading, risk
management and systems, will enable Access Energy to deliver
competitive energy and risk management products in these
rapidly developing markets.
The joint venture will operate from Essent's trading
headquarters in Amsterdam. It will commence trading on 31
March 2000, and it is anticipated that incremental revenues
approaching 500 million Euros will be generated in its first
full year of trading.
Roy Gardner, Chief Executive of Centrica, said: 'We have
always said that a key element of our strategy was to
utilise the experience we gained through the deregulation of
the British markets in liberalising overseas markets. This
joint venture will provide an ideal platform to take
advantage of trading opportunities as European markets
converge.'
Kees Wiechers, Chief Executive of Essent, said: 'Joining
forces with Centrica will allow us to take advantage of
opportunities in the rapidly developing energy market in
continental Europe and will provide innovative energy and
risk management products and services to our wholesale
trading customers.'
Contacts:
Centrica plc
Media Relations Tess Kershaw 01753 758444
Neville Barltrop 01753 758442
Investor Relations Chris Milburn 01753 758114
Jo Sommers 01753 758114
Essent N.V.
Media Relations Jan Veenstra +31 26 8521041
Background to Businesses
Essent
Essent N.V. as a multi utility company is active in the
energy, cable television and waste market. Essent - founded
last year through the merger of the PNEM MEGA Group and the
EDON Group - is market leader in the Dutch energy market.
Essent has 2.3 million electricity connections, 1.7 million
gas connections, 1.6 million cable connections and a market
share of 23% in the waste market.
The head office is based in Arnhem. Essent employs more
than 10,000 staff and had a turnover last year of 8.7
billion guilders. The Essent Energie division operates in
the now liberalised section of the energy market and trades
on the Amsterdam Power Exchange.
Centrica in the UK
Centrica is a leading supplier of energy and services to
British consumers at home and on the road, trading under the
British Gas, Goldfish and Automobile Association brands. It
employs more than 30,000 staff.
Under the British Gas and Scottish Gas brands it supplies
gas to 14.5 million customers and electricity to 2.5 million
customers. It carries out around 7 million gas service
checks and breakdown visits each year and supplies a range
of other products and services.
The company's activities also include a financial services
business with a range of financial and insurance products as
well as the innovative Goldfish card, which currently has
around one million cards in issue.
The Automobile Association leads the market in UK roadside
assistance with 9.7 million members.
Centrica in Europe
Centrica is a major player in the emerging European
wholesale energy trading market. Centrica's Accord Energy
is responsible for wholesale trading of gas and electricity.
It was the first major market maker in short term traded gas
in the UK and more recently has applied its energy
management skills to electricity and weather trading.
A dedicated European marketing team was established in
October 1998 to take advantage of market liberalisation and
to coincide with the opening of the UK-Continent
Interconnector pipeline in October 1998.
The pipeline, linking the UK's transmission system at Bacton
to Zeebrugge in Belgium, enabled Centrica to start
delivering gas to Germany and The Netherlands under
previously arranged contracts.
Continental trading relationships have been established with
more than 15 counter parties and through Accord, Centrica is
a party to a significant share of the Zeebrugge gas traded
market. It has also commenced derivative trading at
Zeebrugge. Centrica has further established trading
positions at Zelzate (Belgium/Dutch border) and Enyatten
(Belgium/German border).
Latest directors dealings
- 4 minutes ago Softcat
- 3 hours ago Tertiary Minerals
- 3 hours ago Hargreaves Services
- 16 hours ago ASOS
- 16 hours ago MJ Gleeson