Centrica

Centrica plc is a British multinational energy and services group headquartered in Windsor, Berkshire. Its principal activities are the supply of gas and electricity, energy-related services, home heating and repair, distributed-energy management, and selected energy infrastructure investments. The group’s best-known consumer business is British Gas, which operates primarily in England and Wales; the equivalent Scottish trading name is Scottish Gas. In Ireland, Centrica operates the Bord Gáis Energy business. The company is listed on the London Stock Exchange under the ticker CNA and has been a constituent of the FTSE 100 Index at different points in its history. Centrica’s roots reach back to the Gas Light and Coke Company, incorporated in 1812 and later absorbed into the publicly controlled gas-board system created after the Gas Act 1948. The area gas boards were consolidated into the British Gas Corporation in 1973. British Gas was subsequently privatised as British Gas plc under the Gas Act 1986. On 17 February 1997, British Gas plc was demerged into three separately listed businesses: Centrica, BG plc and Transco plc. Centrica inherited gas sales and trading, retail energy, services, and production interests in the Morecambe gas fields, while the other businesses focused on international exploration and production and gas transmission. Following the opening of the United Kingdom gas market to competition in 1998, Centrica lost its former supply monopoly but retained the British Gas name for its UK retail operations. It also entered electricity supply as the electricity market became competitive. During the late 1990s and early 2000s, the group pursued diversification, acquiring Direct Energy in North America, the Automobile Association, a residential telecommunications business and other service companies. It later sold or exited many of those non-core activities, including Goldfish, the AA, One.Tel and most continental European retail supply operations, and returned to a more focused energy and customer-services strategy. The company expanded both upstream and downstream. It acquired North Sea interests, arranged long-term gas and liquefied natural gas contracts, purchased energy-management and demand-response businesses, and obtained a stake in British Energy, the UK nuclear generator subsequently controlled by EDF. In 2017, Centrica combined its exploration and production operations with Bayerngas Norge to create Spirit Energy, in which Centrica became the majority owner. It also withdrew from or disposed of several generation and upstream assets as the group reduced capital intensity and concentrated on customer-facing activities. Centrica has repeatedly reorganised in response to retail competition, wholesale-price volatility, regulation and changing energy demand. British Gas lost a substantial number of domestic customers in 2017, leading to cost reductions and job cuts. A further restructuring announced during the COVID-19 crisis in 2020 was intended to create a smaller, simpler group focused on customers and core markets. Centrica sold Direct Energy’s North American business to NRG Energy in 2020, using the proceeds principally to strengthen the balance sheet and pension position. More recently, Centrica has combined conventional energy supply with home electrification, connected-home technology, energy efficiency, solar generation, flexible demand and infrastructure investment. Its 18 MW Codford Solar Farm, opened in 2023, was described as its first major solar asset. The group has also pursued long-term LNG supply and participated in UK nuclear-power development, including an investment in Sizewell C announced in 2025. Its current strategic identity is that of a customer-facing energy company with supply, services, flexibility and selected infrastructure businesses rather than a broadly diversified conglomerate.

Centrica’s corporate history is rooted in the British gas industry. The Gas Light and Coke Company, formed in 1812, became the dominant gas supplier in Greater London through consolidation. State ownership followed the Gas Act 1948, when the company’s assets were transferred to the North Thames Gas Board. In 1973, the regional gas boards were combined into the British Gas Corporation. The Gas Act 1986 privatised the corporation as British Gas plc. The company was later divided on 17 February 1997 into Centrica plc, BG plc and Transco plc. Centrica received the retail, trading, services and some production businesses. It preserved the British Gas consumer identity while adapting to the end of the UK gas-supply monopoly in 1998 and the liberalisation of electricity supply. During the 2000s, Centrica pursued diversification. Direct Energy provided an entry into North American retail energy, while the AA, Goldfish and One.Tel represented attempts to broaden the group beyond energy. Most of those businesses were subsequently sold. From the middle of the decade, management instead emphasised an integrated energy strategy spanning production, trading, supply and customer services. Important transactions included the acquisition of North Sea interests, investment in British Energy, the purchase of Dyno-Rod, and the expansion of Direct Energy’s services operations. The group continued to build an international energy portfolio through LNG contracts, Norwegian continental-shelf interests, Hess’s energy-marketing assets and the Irish Bord Gáis retail business. It also developed connected-home technology through Hive and acquired companies involved in energy optimisation, combined heat and power, demand response and device-level monitoring. In 2017, its exploration and production activities were combined with Bayerngas Norge to form Spirit Energy. Centrica also disposed of selected generation and Canadian upstream assets and ceased operating the ageing Rough facility as a gas-storage site. Retail competition and pressure on household energy margins produced a difficult period in the late 2010s. Customer attrition at British Gas prompted restructuring, and the dividend was reduced in 2019. The COVID-19 shock added bad-debt and demand concerns, drove another large workforce reduction and contributed to the sale of Direct Energy in 2020. British Gas engineering staff also engaged in industrial action over employment terms. Since 2022, higher energy prices improved reported earnings, although the company remained exposed to weather, regulation, wholesale markets and consumer affordability. Centrica has increasingly presented itself as an energy-transition and customer-services company, developing solar generation, flexibility, electrification and digital energy-management capabilities while retaining gas supply, LNG, nuclear and other conventional-energy interests. Its later investments include the Codford Solar Farm, a long-term LNG purchase agreement and participation in the Sizewell C nuclear project.

1. 2025Investment in Sizewell C is announced

   Centrica acquired a 15% stake in the Sizewell C nuclear-power project, with an option to acquire an additional stake.

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2. 2024Energised Futures launches

   Centrica launched a research and innovation venture focused on making energy simpler and more affordable for consumers.

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3. 2023Codford Solar Farm opens

   Centrica opened the 18 MW Codford Solar Farm in Wiltshire, described as its first major solar asset.

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4. 2022Centrica rejoins the FTSE 100

   The company returned to the FTSE 100 effective 20 June 2022.

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5. 2020Direct Energy is sold

   NRG Energy acquired Direct Energy from Centrica, marking a major retreat from North American retail energy.

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6. 2017Spirit Energy is formed

   Centrica combined its exploration and production business with Bayerngas Norge, creating Spirit Energy.

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7. 2014Bord Gáis Energy retail business is acquired

   Centrica acquired the retail arm and related assets of Ireland’s state-owned Bord Gáis.

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8. 2013Hive connected-home business is established

   Centrica established Hive within its Connected Home activities, building on British Gas remote-heating controls.

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9. 2008British Energy investment is agreed

   Centrica agreed to acquire a 20% interest in British Energy from EDF, financing the transaction through a rights issue.

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10. 2004The AA is sold

    Centrica sold the Automobile Association to CVC and Permira as it began withdrawing from broad diversification.

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11. 2000Direct Energy is acquired

    Centrica entered the North American energy-supply market through the acquisition of Canada-based Direct Energy.

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12. 1998UK gas-supply competition begins

    Centrica’s former domestic gas-supply monopoly ended, while the British Gas brand remained in use for UK retail operations.

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13. 1997Centrica is created through the British Gas demerger

    Centrica became a separate public company on 17 February 1997, receiving British Gas retail, trading, services and selected production activities.

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A major UK customer-facing energy and home-services group combining household energy supply with heating, repair, connected-home, flexibility and selected generation and infrastructure activities.

• British GasRetail energy and home services1997

  Centrica’s principal UK consumer brand, supplying gas and electricity and providing boiler installation, maintenance, plumbing, electrical work, heating services and related home-care products. The brand is primarily associated with England and Wales, while Scottish Gas is used in Scotland. British Gas has also been the route through which Centrica has marketed connected-home, energy-efficiency and low-carbon home technologies.

• Scottish GasRetail energy and home services

  The Scottish trading name used by Centrica for consumer energy supply and home-services activities in Scotland. It forms part of the same UK customer-facing business as British Gas, with offerings covering household gas, electricity and heating-related services.

• Bord Gáis EnergyRetail energy and home services2014

  Centrica’s Irish energy retail and services business, acquired from the Irish state-owned gas group. It supplies energy to Irish households and businesses and provides related services under the Bord Gáis Energy identity.

• HiveConnected-home technology2013

  Centrica’s connected-home platform, developed around remote heating control and expanded into smart-home and energy-management products. Hive represents the group’s effort to link household energy use, digital controls and customer services.

• Direct EnergyNorth American energy and services2000

  A North American energy-supply and home-services business owned by Centrica from 2000 until its sale to NRG Energy in 2020. During its ownership, Direct Energy expanded through acquisitions into heating, cooling, plumbing, electrical and energy-management services.

• Spirit EnergyUpstream energy2017

  An exploration and production joint venture created in 2017 from Centrica’s upstream business and Bayerngas Norge. Centrica initially held the majority interest, alongside shareholders led by Stadtwerke München and Bayerngas GmbH.

• 2024Energised Futures

  United Kingdom

  Centrica launched a research and innovation venture to investigate ways of making energy easier to understand and more affordable for consumers.

  Outcome. The campaign was launched in 2024; specific outcomes were not yet reported.

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• 2025Sizewell C investmentM&A

  Centrica increased its participation in UK nuclear-power development as part of a broader infrastructure and energy-security strategy.

  What changed. The company acquired a 15% stake in Sizewell C and obtained an option to purchase a further 2.4% from the UK government within 24 months.

  Aftermath. The transaction gave Centrica a direct investment in a major planned UK nuclear project.

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• 2023First major solar asset opensProduct launch

  Centrica sought to broaden its energy portfolio with renewable generation and energy-transition assets.

  What changed. The group opened the 18 MW Codford Solar Farm in Wiltshire.

  Aftermath. The project became a notable renewable-generation asset in Centrica’s portfolio.

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• 2020Withdrawal from North American retail energyStrategy

  The pandemic and balance-sheet pressures encouraged Centrica to simplify its business and concentrate on its home markets.

  What changed. Centrica agreed to sell Direct Energy to NRG Energy.

  Aftermath. The proceeds were intended to reduce net debt and support pension funding, while Centrica exited a major overseas retail-energy operation.

  Sale consideration. $3.63 billion (2020)

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• 2017Rough storage operations are discontinuedOther

  Centrica Storage determined that the ageing Rough facility could no longer safely support injection operations and that refurbishment or reconstruction was uneconomic.

  What changed. The company sought release from the undertakings governing Rough and stopped treating the facility as a seasonal gas-storage asset.

  Aftermath. The decision reduced Centrica’s exposure to an ageing infrastructure asset but removed a significant UK storage facility from service.

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• 2015Customer-facing strategic resetStrategy

  Centrica faced changing energy-market conditions, pressure on returns and the need to reduce capital intensity.

  What changed. Management launched a strategic review and decided to focus group activities on customer needs, supported by a broad efficiency programme.

  Aftermath. The programme included an expected reduction of approximately 6,000 employees and a reshaping of the portfolio toward energy supply and services.

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• 2023Centrica reports sharply higher 2022 operating profit

  The company reported a substantial increase in operating profit for 2022 amid the sharp rise in energy prices following Russia’s invasion of Ukraine.

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• 2022Centrica returns to the FTSE 100

  Centrica was promoted from the FTSE 250 and rejoined the FTSE 100 effective 20 June 2022.

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• 2021British Gas engineers undertake extended industrial action

  Engineers employed by Centrica’s British Gas business took strike action for 44 days before the dispute ended after members endorsed a revised pay agreement.

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• 2020COVID-19 restructuring includes 5,000 job cuts

  The pandemic accelerated a restructuring intended to simplify the group and focus it on core markets and customer delivery.

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• 2020Centrica sells Direct Energy to NRG Energy

  Centrica agreed to sell its North American subsidiary to NRG Energy for $3.63 billion, refocusing the group on its home markets.

  M&A
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• 2019Centrica cuts dividend after half-year loss

  The group reduced its dividend after reporting a loss of £446 million for the first six months of the year.

  OtherPricing
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• 2018British Gas customer losses lead to further job cuts

  After British Gas lost around 750,000 domestic customers during 2017, Centrica announced plans to remove approximately 4,000 jobs.

  Other
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• 2015Centrica announces major restructuring and job reductions

  A strategic review concluded that Centrica should concentrate on customer-facing energy and services, with a group-wide efficiency programme expected to reduce employment by about 6,000.

  Leadership change
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1. Centrica
2. Centrica corporate website