Centrica plc announces today that it has signed electricity purchase contracts with British Energy for a total of 38 TWh of power over four years, starting in April 2003. These contracts will meet around 20 per cent of Centrica’s annual electricity requirements over that period.
More than half of the electricity purchased will be at a price that is fixed throughout the contract term, with the remainder being linked to future electricity market prices. The contracts will comprise a combination of baseload and peak time power provision. The terms include credit cover arrangements to provide Centrica with security over the life of the contracts.
The agreements have been executed between British Gas Trading Limited and British Energy Power and Energy Trading Limited, wholly owned subsidiaries of British Energy plc and Centrica plc respectively.