REG - Centrica PLC - Acquisition of the Severn CCGT for c.£370 million

CentricaAnnouncement

07/05/2026 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260507:nRSG3972Da&default-theme=true

RNS Number : 3972D  Centrica PLC  07 May 2026

Centrica plc

7 May 2026

Acquisition of the Severn CCGT for c.£370 million

Centrica plc (the "Company", "Centrica") today announces the completion of a
significant addition to its flexible generation portfolio with the
acquisition(1) of the Severn Combined-Cycle Gas Turbine ("CCGT") power station
("Severn") from the Calon Energy Group for an enterprise value of
approximately £370 million, increasing the Centrica Power portfolio to 4GW,
including 1GW of assets currently in planning and construction.

Commissioned in Q4 2010 with an operating capacity of 850MW(2), Severn is one
of the most efficient CCGTs in the UK, located in South Wales. It is one of a
small number of strategic UK CCGTs capable of delivering flexible power
generation at scale.

Severn's scale and flexibility allows it to capture a diverse range of revenue
streams, including the capacity market, provision of critical system services
to the National Energy System Operator and the sale of power to the wholesale
market. Severn is strategically positioned near growing sources of power
demand, including data centre developments in South Wales, supporting long
term utilisation and revenue visibility. Severn is expected to deliver average
capacity market payments of £35 million p.a. until 2030, and annual EBITDA of
£30 - £60 million from 2027, with EPS accretion from the first full year
following completion(3).

Natural gas fired generation will continue to play a critical role in
maintaining system stability through the UK's energy transition, providing
firm and dispatchable power and ensuring security of supply. Severn represents
an excellent fit with Centrica's current portfolio and strategy, building on
Centrica Energy's existing role managing the plant's route to market, offering
the scope to deliver incremental returns through optimisation, and underpinned
by supportive market dynamics.

Chris O'Shea, Group Chief Executive of Centrica plc, said:

"We are delighted to add the Severn power station and its talented team to
Centrica, which brings our total UK and Ireland electricity generation
capacity in planning, construction and operation to 4GW. The importance of
reliable, flexible generation to balance the system continues to increase,
keeping energy supplies secure and affordable as the energy transition
progresses. Severn will play an important role in supporting that journey.
With the delivery of replacement capacity being impacted by grid access,
rising costs and supply chain constraints, alongside the closure of aging gas
assets towards the end of the decade, the need for assets like Severn will
increase.

"Severn is a high‑quality asset that strengthens our ability to deliver the
dependable power both our customers and our host countries rely upon. With our
substantial experience operating critical energy infrastructure, we're
confident we can maximise long‑term value - supporting energy security,
driving attractive returns, and creating real benefits for households,
businesses and our shareholders."

The acquisition of Severn is aligned to Centrica's rigorous financial framework and capital allocation policy, with a further £0.4 billion now committed since our 2025 preliminary results announcement to the Company's investment programme. Accordingly, capital investment in 2026 is expected to be around £1.1 billion.

Centrica will fund the acquisition of Severn entirely from existing cash
resources, on a cash-free, debt-free basis.

Notes:

1. Through the acquisition of Severn Power Limited from Severn Power Holdings
Limited.

2. 2 x 425MW units.

3. A small net loss is expected in 2026 due to transaction and integration
costs, alongside naturally lower revenues in the summer months.

Enquiries:

Centrica

Investors and Analysts:
                   email: ir@centrica.com (mailto:ir@centrica.com)

Media:
 
email: media@centrica.com (mailto:media@centrica.com)

 
                                           tel: +44 (0)
1784 843000

 

Citigroup Global Markets Limited is acting as exclusive financial advisor.
Slaughter and May is acting as lead legal adviser to Centrica, with Freeths
acting as co-counsel.

Citigroup Global Markets Limited ("Citi"), which is authorised by the
Prudential Regulatory Authority and regulated in the UK by the Financial
Conduct Authority and the Prudential Regulatory Authority, is acting
exclusively as financial adviser to Centrica and for no one else in connection
to the matters described in this announcement, and will not be responsible to
anyone other than Centrica for providing the protections afforded to its
clients or for providing advice in relation to the matters referred to in this
announcement. Neither Citi, nor any of its affiliates, directors or employees
owes or accepts any duty, liability or responsibility whatsoever (whether
direct or indirect, whether in contract, in tort, under statute or otherwise)
to any person who is not a client of Citi in connection with this
announcement, any statement contained herein, the matters described in this
announcement or otherwise.

 

END

 

Centrica plc is listed on the London Stock Exchange (CNA)

Registered Office: Millstream, Maidenhead Road, Windsor, Berkshire SL4 5GD

Registered in England & Wales number: 3033654

Legal Entity Identifier number: E26EDV109X6EEPBKVH76

ISIN number: GB00B033F229

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCUBOVRNVUVRRR



            Copyright 2019 Regulatory News Service, all rights reserved