Centrica increases power demand

Centrica announced it has entered into a further agreement with power company Drax to access an additional 300MW of baseload power. The deal will run for a five-year period from October 2010.



Under the terms of the agreement, similar to the existing 600MW supply contract that commenced in October 2007, Drax will supply power to Centrica at a price set with reference to international coal prices and agreed fixed clean dark spreads, while Centrica will deliver matching carbon allowances.



Centrica believes the agreement will help it to ensure secure energy supplies for customers and diversify its fuel mix – further reducing its overall exposure to the gas price in the UK.