Britain's Biggest Pilot of New Energy Technology for the Home.

Business Editors

LONDON--(BUSINESS WIRE)--June 29, 2000

British Gas is set to launch the country's biggest deployment of new in-home energy technology. This bold move is intended to show real proof of the customer benefits of the technology. This could lead to a host of new services for the home and see the end of one of life's little annoyances - in the largest scheme of its kind ever undertaken in the UK.

British Gas has selected BCN Data Systems Limited (BCN) - a subsidiary of Bechtel Enterprises of the USA - to provide the advanced technology. Subject to agreement between the companies, up to 100,000 homes could take part in the project that involves gas and electricity meters being read without the need for a visit from the meter reader. This could signal the end of estimated bills.

The investment is the latest in a series of customer service improvements from British Gas including price cuts and the abolition of standing charges.

Every year British Gas sends out 70 million bills, and a large proportion use estimated readings rather than actual readings but research shows estimated bills are unpopular with customers.

The companies have signed a five-year contract for advanced meter reading services which will aim to ensure that bills are accurate and bang up to date. The technology, which is the fastest growing and most proven of its kind in the world today, works like this:

--  Small electronic units are attached to the gas or electricity
    meter.

--  The units read the meter electronically and then transmit the
    readings to receivers located nearby.

--  The receivers then forward the meter readings to British Gas's
    customer service computers.

Around 50,000 homes in the Manchester and North London areas will be the first to take part in the project this year making this the country's biggest pilot of such technology. Upon confirming the expected customer benefits, British Gas would look to offer the service to customers across the country.

As well as accurate bills the technology, called fixed radio meter reading, may result in a host of new and innovative energy supply services to the home.

Mike Alexander, Managing Director of British Gas Trading said: "The way people live is changing rapidly. Nowadays we all have less time. That means it is less likely that you will be at home when the meter reader calls. But customers have told us that they would prefer not to receive estimated bills, so we are making this major investment in an attempt to remove this inconvenience and to investigate new and innovative ways of meeting our customers' energy needs.

"New technology is changing the way people live and businesses operate. This system could provide British Gas with the opportunity to further shake up the energy market and create more radical services that will benefit customers."

Jerry Sprecher, Vice President - Operations, of BCN, added: "We are delighted that British Gas Trading, the country's leading energy supplier, has selected our proven technology and are very pleased to deploy the first stage of what we expect will become the world's largest fixed radio system for meter reading. We believe British Gas's decision to provide their customers with new and useful energy information services exemplifies the growing awareness of the value of real-time, on-line energy consumption data."

Notes to Editors:

1. This deployment will be the largest fixed radio system for meter

reading outside the US.

2. British Gas Trading is part of Centrica plc (London Stock

Exchange: CNA), a leading supplier of energy and services to the

home in Great Britain.

3. BCN Data Systems Limited is the UK-based, wholly owned subsidiary

of BCN Data Systems, LLC, which is a subsidiary of Bechtel

Enterprises and was formed to market, deploy and operate fixed

radio meter reading systems information services to utilities

outside of the United States.

4. Domestic gas customers use less than 73,200 Kwh annually.