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Encyclopedia > Centrica
Centrica
Type Public (LSE: CNA)
Founded 17 February 1997
Headquarters Flag of the United Kingdom Windsor, England, UK
Key people Roger Carr Chairman
Sam Laidlaw CEO
Industry Utilities
Revenue £16,342 million GBP (2007)
Operating income £1,949 million GBP (2007)
Net income £1,507 million GBP (2007)
Subsidiaries See below
Website www.centrica.com
For consumers: www.britishgas.co.uk

Centrica plc (LSE: CNA) is a large multinational utility company, based in the United Kingdom but also with interests in North America and Europe. It is part of the FTSE 100 Index of companies. Image File history File links No higher resolution available. ... The Source by Greyworld, in the new LSE building Paternoster Square. ... is the 48th day of the year in the Gregorian calendar. ... For the band, see 1997 (band). ... Image File history File links Flag_of_the_United_Kingdom. ... This article is about the English town. ... For other uses, see England (disambiguation). ... The United Kingdom of Great Britain and Northern Ireland is a country in western Europe, and member of the Commonwealth of Nations, the G8, the European Union, and NATO. Usually known simply as the United Kingdom, the UK, or (inaccurately) as Great Britain or Britain, the UK has four constituent... A Chairman is the presiding officer of a meeting, organization, committee, or other deliberative body. ... Chief Executive Officer (CEO) is the job of having the ultimate executive responsibility or authority within an organization or corporation. ... A public utility is a company that maintains the infrastructure for a public service. ... For the tax agency in Ireland of the same name, see Revenue Commissioners. ... GBP redirects here. ... Earnings before interest and taxes (EBIT), also known as operating income and operating profit, is a term used to describe a companys earnings. ... GBP redirects here. ... Net income is equal to the income that a firm has after subtracting costs and expenses from the total revenue. ... GBP redirects here. ... A subsidiary, in business, is an entity that is controlled by another entity. ... A website (alternatively, Web site or web site) is a collection of Web pages, images, videos or other digital assets that is hosted on one or several Web server(s), usually accessible via the Internet, cell phone or a LAN. A Web page is a document, typically written in HTML... The Source by Greyworld, in the new LSE building Paternoster Square. ... North American redirects here. ... For other uses, see Europe (disambiguation). ... The FTSE 100 Index (or just the FTSE, pronounced footsie) is a share index of the 100 most highly capitalised companies listed on the London Stock Exchange. ...

Contents

History

Centrica was created in 1997 when British Gas plc demerged into Centrica plc and BG plc (later BG Group plc). The demerger grouped British Gas's gas supply, services, retail businesses and gas production business of the Morecambe gas fields under Centrica. Centrica is the largest supplier of gas to domestic customers in the UK, and one of the largest suppliers of electricity, operating under the trading names "Scottish Gas" in Scotland and "British Gas" in the rest of the UK. This page is about the former gas monopoly in the United Kingdom for information about the successor companies please see Centrica, BG Group and Transco. ... BG Group Plc (LSE: BG.) is an energy production and distribution company which is headquartered in Reading outside London, England. ... BG Group Plc (LSE: BG.) is an energy production and distribution company which has its headquarters in Reading outside London, England. ...


In late 1998, under CEO (Sir) Roy Gardner and Finance Director Mark Clare, Centrica attempted to diversify - firstly by developing the Goldfish credit card, then in 1999 by acquiring the AA for £1.1 billion. In 2000 Centrica further diversified with the opportunistic purchase of OneTel in the UK, a residential telecoms operator. Soon afterwards Centrica also bought the Dyno franchise group (best known for its Dyno-Rod drains unblocking service). The Automobile Association (The AA) is a former British motoring association that became a private limited company in 1999, currently owned by two large private equity firms. ...


This strategy of diversification changed from mid 2003. Possibly under pressure from major city shareholders to deliver better returns, and/or possibly anticipating pressure on the core UK energy supply business. The change of strategy started with the sale of the Goldfish business to Lloyds TSB Bank (who subsequently sold it to Morgan Stanley Bank International Limited). Then in 2004 Centrica sold the AA to two European private equity firms, CVC and Permira for £1.75 billion. Then in 2005 Centrica sold their OneTel business to Carphone Warehouse. CVC Capital Partners is a European private equity firm. ... Permira is an international, private equity firm based in the United Kingdom. ...


Since then Centrica has declared a strategy of consolidating within the energy sector, upstream and downstream, including expanding operations overseas. New Chairman Roger Carr replaced retiring chairman Sir Michael Perry in 2005, new CEO Sam Laidlaw picked up the reins from retiring CEO Sir Roy Gardner in 2006. Sam Laidlaw brings significant experience of 'upstream' operations, securing supplies of energy which can then be sold on through Centrica's consumer business. Former Finance Director for Centrica Phil Bentley has become Managing Director of the core Centrica business British Gas. Meanwhile Sir Roy Gardner has become Chairman of food services group Compass, and former Finance Director of Centrica and MD of British Gas Mark Clare has become CEO of Barrett Homes.


In 2005 British Gas began outsourcing the majority of back office work processes to agencies in India (247 Customer Pvt Ltd). This was based around the energy market in the U.K. as labour costs in India are far lower. Because of the lower labour costs and the implementation of new software structures British Gas reduced its staff in the U.K. by around 3000.


Divisions

Europe

  • Luminus (Belgium)
  • Oxxio (Netherlands)
  • Luseo Energia (Spain)
  • Centrica Energie GmbH (Germany)

Luminus (real name Amir Dvir) is a psychedelic trance -Goa trance musician from Israel. ...

Centrica North America

  • Direct Energy
  • Direct Energy Business Services
  • WTU Retail Energy
  • CPL Retail Energy

Direct Energy is a retailer of energy and energy solutions. ...

United Kingdom

  • Centrica Energy
    • Gas fields
    • Power stations
  • British Gas Services
  • British Gas Residential
    • British Gas (England & Wales)
    • Nwy Prydain (Wales)
    • Scottish Gas
    • Dyno-Rod
  • British Gas Business
  • Centrica Storage
    • Rough gas storage facility
  • Newfield Exploration UK

British Gas

British Gas Logo, to which Centrica has the rights in the UK
British Gas Logo, to which Centrica has the rights in the UK

Centrica plc, trading as British Gas (and as Scottish Gas in Scotland) is market leader in the supply of energy to UK households. In recent years the UK wholesale energy market has become more volatile, leading to increasing energy prices. Consequently the core residential energy business of British Gas has been running at a loss according to results released by parent, Centrica plc. Image File history File links Unbalanced_scales. ... Image File history File links Download high resolution version (877x341, 19 KB) File history Legend: (cur) = this is the current file, (del) = delete this old version, (rev) = revert to this old version. ... Image File history File links Download high resolution version (877x341, 19 KB) File history Legend: (cur) = this is the current file, (del) = delete this old version, (rev) = revert to this old version. ...


To help to manage price volatility, Centrica announced a variety of investments in new sources of supply that may help wholesale prices to come down in the future. During 2005, the company estimated that nearly £600 million was spent on new gas, power and renewable energy assets, with a further £400 million committed to help import more gas into the country.[1] Since 40% of electricity is generated by gas-powered stations, this investment was predicted to reduce the cost of electricity. In parallel British Gas announced in July 2006 that they intend to improve customer service.


By early 2007 market reports suggested that UK wholesale energy prices had stabilised and started to fall. In March 2007 Centrica's British Gas (and Scottish Gas) implemented the first price reductions in the UK residential energy market for six years, a move followed by other major energy suppliers. [2]. In late April 2007 British Gas again reduced prices, highlighting that some competitors had yet to reduce prices in 2007. Having suffered heavy losses of customers as prices were rising, British Gas claimed that the new environment of falling prices would allow them to grow their customer base. [3].


Meanwhile the EU is investigating alleged malpractice in the wholesale market for gas and electricity supply across Europe. Allegations include the suggestion that gas supplies to the UK are restricted, contributing to increases in the wholesale price of gas in the UK. The conclusions of a competition inquiry into the EU energy sector were published in December 2006. Wikiquote has a collection of quotations by or about: European Union The European Union On-Line Official EU website, europa. ...


The draft conclusions, published in February 2006, confirmed fears by Brussels that former state monopolies in the major European markets (not UK) were keeping a stranglehold on home markets, allowing them to control pricing - against the interests of consumers. Competition commissioner Neelie Kroes criticised excessive concentration in what she said reflects the "old market structure of national or regional monopolies".[4] Neelie Kroes Neelie Kroes (born 19 July 1941 in Rotterdam) is a Dutch politician, currently serving as European Commissioner for Competition. ...


In May 2006, Kroes showed real commitment to addressing the issues by launching a series of surprise inspections at the offices of major power utilities in Germany, Italy, France, Belgium and Austria on suspicion of antitrust practices and abuse of dominant market position in the gas sector (E.ON, RWE, Gaz de France, Distrigas, OMV were among the companies targeted). [5] [6] E.ON AG (ISIN: DE0007614406, NYSE: EON, LSE: EON) , based in Düsseldorf, Germany, is an energy corporation, one of the 30 members of the DAX stock index of major German companies. ... RWE AG, until 1990 named Rheinisch-Westfälisches Elektrizitätswerk AG, is a German public utility and electric power company based in Essen. ... Gaz de France is a French company which specializes in the transportatino and distribution of natural gas. ... For other uses, see OMV (disambiguation). ...


In the final report issued in January 2007 Kroes was highly critical of the lack of market conditions supporting competition [7] [8]


The wider European energy market has a direct influence on the operation of the UK market. This includes the sources of supply and the nature of competition. In contrast to the situation in Europe, the UK energy market is an open market in which British Gas competes with a variety of other suppliers - including Powergen and nPower which are subsidiaries of E.ON and RWE, respectively. In economics, the open market is the term used to refer to the environment in which bonds are bought and sold. ... Powergen was an electric generating company in the United Kingdom. ... npower is a gas and electricity supply company that is based in the United Kingdom. ...


See also

For energy use in practice, see Energy use and conservation in the United Kingdom The Energy policy of the United Kingdom is a set of official publications and activities directed at the present and future production, transmission and use of various power technologies within the UK. Historically a country emphasizing... For Government policy, see Energy policy of the United Kingdom Energy use and conservation in the United Kingdom has been receiving increased attention over recent years. ...

References

  1. ^ "Centrica signs Drax supply deal", BBC © BBC 2006, April 11, 2006. 
  2. ^ "British Gas cuts energy tariffs", BBC © BBC 2007, March 12, 2007. 
  3. ^ "British Gas cuts its energy bills", BBC © BBC 2007, April 26, 2007. 
  4. ^ "Energy firms 'holding back gas'", BBC © BBC 2006, Feb 16, 2006. 
  5. ^ "Spanish energy tussle hots up", BBC © BBC 2006, Aug 7 2006. 
  6. ^ "Centrica raps French gas merger", BBC © BBC 2006, May 21, 2006. 
  7. ^ "Energy sector inquiry", European Commission © European Communities, 1995-2007, January 2007. 
  8. ^ "Summary of Energy sector inquiry", European Commission © European Communities, 1995-2007, January 2007. 

is the 101st day of the year (102nd in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 71st day of the year (72nd in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... is the 116th day of the year (117th in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... February 16 is the 47th day of the year in the Gregorian Calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... August 7 is the 219th day of the year in the Gregorian Calendar (220th in leap years), with 146 days remaining. ... is the 141st day of the year (142nd in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ...

External links

  • Centrica website
  • Profile of British Gas on Gas Guide
  • British Gas Fuel Mix for 2006

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