E.ON sells Central Networks power-distribution business

Energy provider E.ON has agreed to sell its UK power-distribution business, Central Networks, to PPL in Allentown, Pennsylvania, for £4bn.

The deal, which is expected to close in early April, includes an assumption of £500m of existing debt.

Central Networks operates the regional grid that covers the UK’s Midlands, and, through its network of 133,000km of overhead and underground cables, the business delivers power to more than five million customers.

E.ON purchased Central Networks East as part of its takeover of Powergen in 2002.