British Gas acquires ECL Contracts Ltd insulation business

British Gas announces a further expansion of its insulation business with the acquisition of ECL Contracts Ltd, a specialist external-wall insulation company

British Gas has announced a further expansion of its insulation business with the acquisition of ECL Contracts Ltd, a specialist external-wall insulation company, for £4 million in cash.

The deal represents another major step in British Gas' ambition to build the country's leading insulation business, and help British Gas customers cut their energy usage, their carbon emissions and their fuel bills.

ECL Contracts Ltd is based in Rugby, Warwickshire and currently employs 31 staff. This acquisition will enable British Gas to diversify its own product range beyond loft and cavity-wall insulation and into solid-wall insulation. There are around 9 million homes in the UK of solid wall construction.

Demand for home insulation is forecast to rise significantly in the next five years. Currently, £1 in every £4 spent on domestic energy is wasted because of poor insulation. Spending on home insulation is predicted to rise from around £0.6 billion a year in 2010 to £1.4 billion in 2015. Government programmes such as the Green Deal are also expected to make energy efficiency more attractive to British households.

British Gas aims to be the leading supplier of domestic insulation, building on its existing leading position in the provision of energy efficiency and microgeneration products, offering customers complete energy solutions for their homes.

Jon Kimber, Managing Director of British Gas New Energy, said:

"This acquisition is part of the continuing success story of the British Gas insulation business. At British Gas, we are building the country's leading insulation business, reducing household carbon emissions, and helping our customers lower their energy bills.

"The insulation market is growing, and insulating homes is the cheapest way to reduce energy bills. ECL Contracts Ltd, like British Gas, has a real passion for great customer service, and we are delighted to have secured the skills of such a great team."

Malcolm Smith, Managing Director, ECL Contracts, said:

"This is great news for ECL Contracts and a reflection of the hard work and skill of all our people. I joined ECL Contracts 14 years ago and I've seen the company go from strength to strength. We are now starting a new chapter and are thrilled at being part of one of Britain's most successful companies."



  • £1 in every £4 spent on heating is wasted due to poor insulation
  • Last year, British Gas completed around 270,000 insulation installations
  • In 2009, the total monetary savings on energy bills made by British Gas customers as a result of insulation were estimated at £30 million
  • In February 2010, British Gas announced its intention to build its own insulation business, employing 1,100 employees across Britain
  • With a quarter of CO2 emissions in the UK coming from homes, demand for energy efficiency products and services is rising rapidly
  • Insulation gives homes a better energy efficiency rating, which can increase their value
  • The Government's Green Deal is expected to act as an additional encouragement to help households adopt energy efficiency measures. The Green Deal is the Coalition Government's initiative to support energy efficiency measures for households and businesses without them needing to meet any upfront costs. Work to improve the energy efficiency of a home, through measures like loft and cavity wall insulation, will be paid back via the savings made on the energy bill.
  • In September, British Gas announced its plans to ‘go early' on the Green Deal by investing £30 million in installing energy efficiency measures in its customers' homes at no up-front cost. Repayments from customers will be made via savings in their energy bill. Customers can register their interest in the British Gas Green Deal proposition via our website:
  • Centrica plc, the parent company of British Gas, has acquired ECL Investments Ltd, the holding company of ECL Contracts Ltd, through its subsidiary GB Gas Holdings Ltd