Centrica, the owner of British Gas, has acquired the Severn gas turbine power station in Wales for £370 million. The company said the purchase will help maintain energy security and affordability amid rising global gas prices.
The Severn site is one of the most efficient gas-fired plants in the UK and is strategically located near growing demand sources, including data centres in south Wales. The deal increases Centrica's power portfolio to four gigawatts and is expected to generate annual earnings of £30-60 million from 2027.
Centrica plans to increase capital investment to around £1.1 billion in 2026. Chief executive Chris O'Shea said flexible generation is critical for system stability as the UK transitions energy sources, with older gas assets retiring towards the end of the decade.
Meanwhile, Centrica warned that retail earnings would be at the lower end of its £500-800 million guidance due to warmer weather and bad debt challenges. The company is also monitoring the impact of the Middle East conflict on gas prices, which remain elevated year-on-year.
At the AGM in Cardiff, over 12% of investors voted against executive pay plans, following O'Shea's £3.6 million in bonuses and shares last year. His total pay for 2025 was £4.73 million, down from £5.08 million. Last year's rebellion saw nearly 40% oppose remuneration.
