Centrica exercises Langage option

Centrica has recently exercised its option to acquire a subsidiary of Carlton Power Limited, which owns land and consents for developing a gas fired power station at Langage, Devon.

Centrica announced recently that it has exercised its option to acquire a subsidiary of Carlton Power, which owns land and consents for developing a gas fired power station of up to 1000MW at Langage, Devon.

The Langage project is one of only three large scale power station developments in the UK which are consented and aligns with Centrica’s strategy of generating a growing proportion of its own electricity for British Gas customers. Centrica says Langage has specific locational benefits, being situated in the southwest, which has little existing generation capacity.

The acquisition of the subsidiary, Wainstones Power, follows an option agreement entered into by Centrica and Carlton in April 2004. Carlton Power has been retained to provide essential pre-development project services.

If a decision is taken to construct the plant, the total consideration excluding construction costs would be approximately £12.8 million, part of which has already been committed.

“Faced with increasing wholesale prices in the UK’s changing energy market, today’s purchase provides an opportunity to increase our own generation as we look to meet a growing proportion of our British Gas customers’ needs from our own sources,” said Jake Ulrich, Managing Director of Centrica Energy.

“We will now work closely with Carlton Power on the Langage project before making any decision on construction,” added Ulrich.

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