1. British Gas & Low Carbon Building Programme Phase 2 2007

2. A few words about us…. Our Energy Efficiency programme is the largest in the UK…c.£100m p/a spend Last year we delivered 9m energy efficiency measures into 3m households Through our insulation contractor network we install c.120k jobs per annum We have over 200 active energy efficiency projects with Local Authorities and Housing Associations & relationships with most others Strategic EE partnerships with B&Q, Currys, Sony, Philips, GE and Boiler Manufacturers Innovative energy efficiency programmes to help vulnerable and Fuel Poor’ customers e.g. here to HELP Many other innovative proposition such as our Council Tax rebate.

3. How we positioned our LCBP tender Diversity (all technologies covered) Customer led solutions Experience and expertese of consortium partners Microgeneration complemented by traditional energy efficiency products, utilising British Gas EEC funding Focus on sectors where we have existing experience and relationships, but also serve other sectors e.g. schools Complement existing innovative EE propositions Delivering best value and choice to our clients

4. Public Sector Clients British Gas British Gas Consortium - LCBP operating model Consortium Technologies & Manufacturers GSHPumps (ECO Heatpumps, W/Bosch & Geothermal International) Wind Turbines (Proven, Windsave) Biomass (Bioenergy) Solar PV (Filsol & Sharp) Solar Thermal (W/Bosch, Filsol & Vailant) Lead Organisation Customers Responsibilities: Supply installation maintenance Responsibilities: Sales Propositions Pricing Client Relationship DTI funding Responsibilities: Funding Planning Project Lead

5. Our tender success puts us all in a very strong position Organisations TECHNOLOGIES BiomassGSHPSolar PV Solar Thermal Wind British Gas Dimplex E.On Filsol Low Carbon Partners RES Heat & Power Solar Century

6. Technologies and funding structures The £48 million will be split between microgeneration technologies as follows: Available Funding Grant per unitTypical Installed Price (incl Grant)* Solar Thermal£7 million30%2,800 Solar Photovoltaic £17.5 million50%5,300 Ground Source Heat Pump £7.5 million35%5,900 Biomass Boiler£4 million35%4,600 Wind£12 million30%1,000 * Based on Domestic Premises

7. British Gas Objectives Build our microgeneration experience Complement existing Public Sector operations Understand potential of our partners Potential to build into EECIII (2008-2011)

8. Next Steps….. The project is ready for promotion and funds will be allocated on a first come first served basis ! Sales packs on all technologies will be distributed when produced ….. Feb 2007 Contact points Alison Swan Office 01620 861015 Mobile 07979 566392 Email alison.swan@centrica.co.uk