Centrica as an Investment

Electricity demand in our core markets is set to materially increase by 2050, driven by the electrification of transport and residential heating, as well as emerging demand from areas such as data centres. Meanwhile, power grids are already becoming more complex, with an ever-increasing reliance on greener, but more intermittent, renewable generation capacity. Customers are also becoming increasingly engaged in home energy management, which will drive increased demand for innovative customer propositions.

With market-leading positions across the energy value chain, our portfolio is well-positioned to benefit from these trends, as each of our businesses de-risks, complements and adds value to the others. These dynamics also provide us with significant future opportunities aligned with our strategy and net zero ambitions.

To capitalise on the growth opportunities ahead of us, we’re adopting a simple, focused approach:

Operational excellence - Continuously improving to increase our efficiency, reduce costs and enhance customer satisfaction

Commercial focus - Innovating to deliver compelling customer propositions and building optionality

Investing for value – Investing to make Centrica a more predictable business, delivering strong returns across Centrica

Having simplified our portfolio and improved operational performance, we remain focused on maximising sustainable profitability from our portfolio.

We expect to deliver around £1bn of adjusted EBITDA¹ on average each year by the end of 2028 from our Retail and Optimisation activities, equating to around £800m of sustainable adjusted operating profit. Over time, we expect cash flow from our existing Infrastructure assets to be replaced by a contribution from assets we are developing as part of our focus on investing for value. Earnings from these new assets should be more stable, helping provide a more reliable, rateable earnings stream over the longer term.

We aim to invest up to £4bn through to 2028, focusing on assets that generate attractive returns, complement our existing businesses, provide balance to the portfolio and align to the needs of the energy transition. Over 50% of this investment is expected to be in green taxonomy eligible projects, which will help us meet our 2040 net zero target (Scope 1 & Scope 2) and help our customers reach net zero by 2050 (Scope 3).

Our investment programme includes our Meter Asset Provider (MAP) business, our two 100MW gas peaking plants in Dublin and Athlone which are due to commence operations in the second half of 2025, our acquisition of ENSEK, the company which powers our Ignition customer platform in British Gas Energy, and a range of other flexible and renewable power generation and storage assets.

We announced in early 2025 that we are further expanding our presence in the Irish power market with a planned 334MW flexible peaking plant in Galway.  We retain attractive options for potential hydrogen and carbon capture investments at our Rough and Morecambe Net Zero (Spirit Energy) assets, both of which could be backed by government regulatory mechanisms, and we continue to invest in new renewable and flexible power assets, including our investment into Highview Power, which is developing the first commercial-scale Liquid Air Energy Storage plant in the UK.

In Summer 2025 we announced our strategic investment in the UK's nuclear infrastructure by acquiring a 15% equity stake in Sizewell C, a new 3.2GW nuclear power station under construction in Suffolk, in the South East of the UK, with committed construction funding capped at £1.3 billion. Once commissioned, the new station will provide zero-carbon baseload power to the UK for at least the next 60 years, helping to support the UK's long-term decarbonisation journey. We also announced a 50% investment into the Isle of Grain liquified natural gas terminal in partnership with Energy Capital Partners LLP. Grain LNG delivers vital energy security for the UK and is aligned with Centrica's strategy of investing in regulated and contracted assets supporting the energy transition.