Direct Energy Business to Acquire Retail Business of Source Power & Gas LLC

Direct Energy Business, a subsidiary of Centrica plc, announced today an agreement to purchase the retail electricity business of Source Power & Gas LLC, a wholly owned indirect U.S. subsidiary of Australian power company ERM Power Limited [ASX: EPW].

Source Power & Gas is a Sugar Land, Texas, based retail energy provider serving commercial and industrial customers in the ERCOT and PJM ISO markets.

With an approximate annual load of 6.5 TWh, Source Power & Gas currently serves 4,000 customers across 16,000 service locations in Texas, Illinois, Ohio, New Jersey, Delaware, Maryland, Pennsylvania and the District of Columbia.

"The purchase of Source Power & Gas, LLC's retail business is in line with our continued growth strategy in North America," said John Schultz, President Centrica North America and Direct Energy Business. "This transaction will mark a significant step in continuing to expand our operations and customer footprint in existing markets." 

The sale is subject to usual completion conditions and adjustments and is expected to close on 30 November 2018, followed by a period of customer transition.

Notes

About Direct Energy

Direct Energy is one of North America's largest retail providers of electricity, natural gas, and home and business energy-related services with over four million customers. Direct Energy gives customers choice, simplicity, and innovation where energy, data, and technology meet. A subsidiary of Centrica plc (LSE: CNA), an international energy and services company, Direct Energy, its subsidiaries and/or affiliates, operate in 50 U.S. states plus the District of Columbia and eight provinces in Canada. To learn more about Direct Energy, please visit www.directenergy.com.

About Centrica plc

Centrica plc is an international energy and services company. Our purpose is to provide energy and services to satisfy the changing needs of our customers.

Two of our global divisions, Centrica Consumer and Centrica Business, supply energy and energy-related services to over 25 million customer accounts in the UK, Ireland and North America, through strong brands such as British Gas, Direct Energy and Bord Gáis Energy. They do this with the support of 15,000 engineers and technicians.

We’re also developing new and innovative products, offers and services for customers through our five growth businesses: Energy Supply, Services, Connected Home, Distributed Energy & Power (DE&P), and Energy Marketing & Trading. Our Connected Home business has developed the Hive product range, including the smart thermostat, which allows customers to control their energy usage from their phone, while DE&P offers integrated energy solutions for commercial and industrial customers, providing customers with end-to-end services – from insight to optimisation and solutions.

Innovation underpins everything we do, which is why we’ve invested £100m in Centrica Innovations, a venture to identify, incubate and accelerate new technologies and innovations that can help provide the right offers, products and services for our customers.

Our third global division, Exploration & Production (E&P), now consists of two business units – Spirit Energy and Centrica Storage. In December 2017 Spirit Energy was launched, a newly formed business combining Centrica’s E&P business with Bayerngas Norge. The transaction creates a leading independent European E&P business with an attractive mix of producing assets and development projects. It is expected to deliver medium-term production in the 45-55mmboe range.