Centrica plc (CNA) 2024年年度報告「LSE」.pdf

《Centrica plc (CNA) 2024年年度報告「LSE」.pdf》由會員分享，可在線閱讀，更多相關《Centrica plc (CNA) 2024年年度報告「LSE」.pdf（296頁珍藏版）》請在三個皮匠報告上搜索。

1、 Energising a greener,fairer futureCentrica plcAnnual Report and Accounts 2024 Strategic Report1Group highlights2Centrica at a glance4Chairs statement7Group Chief Executives statement11Our Purpose and Values12Our stakeholders14Business overview 16Market trends18Our strategic value drivers26Group Chi

2、ef Financial Officers report 32Our view on taxation33Business review38Key performance indicators40 Our Principal Risks and uncertainties52Assessment of viability54Group Chief People Officers report58People and PlanetBy delivering the energy our customers need today,and the energy security,efficiency

3、,and decarbonisation solutions needed for the future,we are perfectly positioned to grow through the energy transition.We have been at the centre of the UK energy industry for over 200 years,and our integrated businesses share a common purpose energising a greener,fairer future.66Non-Financial and S

4、ustainabilityInformation Statement67Task Force on Climate-related Financial Disclosures73Our updated Climate Transition Plan 2024Governance80Directors and Corporate Governance Report86Biographies94The Boards duties under Section 172100 Audit and Risk Committee112Nominations Committee114Safety,Enviro

5、nment and Sustainability Committee116Remuneration Report148 Other statutory informationFinancial Statements154Independent Auditors Report167Group Income Statement168Group Statement of Comprehensive Income169Group Statement of Changes inEquity170Group Balance Sheet171Group Cash Flow Statement172Notes

6、 to the Financial Statements270 Company Financial Statements281Gas and Liquids Reserves(Unaudited)282 Five Year Summary(Unaudited)Other Information283 Shareholder Information284 Additional Information ExplanatoryNotes(Unaudited)289 People andPlanet Performance Measures292 GlossaryUnless otherwise st

7、ated,all references to the Company shall mean Centrica plc(registered in England and Wales No.3033654);and references to the Group shall mean Centrica plc and all of its subsidiary undertakings and equity-accounted associate/joint venture undertakings;and references to operating profit or loss,taxat

8、ion,cash flow,earnings and earnings per share throughout the Strategic Report are adjusted figures,reconciled to their statutory equivalents in the Group Chief Financial Officers Report on pages 26 to 31.See also notes 2,4 and 10 to the Financial Statements on pages 174 to 175,183 to 189 and 200 for

9、 further details of these adjusted performance measures.In addition see pages 284 to 288 for an explanation and reconciliation of other adjusted performance measures used within the document.This Annual Report and Accounts does not offer investment advice,and does contain forward-looking statements.

10、The Disclaimer relating to this Annual Report and Accounts is included on page 293.8.17.71,7036,5121,5522,75225.770.619.033.49892,2072,8582,7444.54.0+29+171,733,8821,685,8400.630.84+73+71Group highlightsCentrica plc Annual Report and Accounts 202411,1492,752Group financial metrics(Year ended 31 Dece

11、mber 2024)Group statutory operating profit/(loss)(m)Group adjusted operating profit(m)Group statutory basic EPS(pence)Group adjustedbasic EPS(pence)20242024202420242023202320232023Group statutory net cash flow from operating activities(m)Group free cash flow from continuing operations(m)Adjusted net

12、 cash(m)Full year dividend per share(pence)20242024202420242023202320232023Group operational metricsBritish Gas Energy Residential energy Touchpoint Net Promoter Score(NPS)(1)British Gas Services&Solutions Services Engineer NPS(2)Total recordable injury frequency rate(per 200,000 hours worked)202420

13、242024202320232023Colleague engagement(3)Total greenhouse gas emissions(tCO2e)(4)2024202420232023 Included in DNV Business Assurance Services UK Limited(DNV)s independent limited assurance engagement.See page 289 or for more.(1)Measured independently,through individual questionnaires,the customers w

14、illingness torecommend British Gas Energy following contact.(2)Measured independently,through individual questionnaires,the customers willingness to recommend British Gas following a gas engineer visit.(3)Engagement is based on an average score out of 10 and measures how colleagues feel about the Co

15、mpany.(4)Comprises Scope 1 and 2 emissions as defined by the Greenhouse Gas Protocol.2023 restated due to availability of improved data.We reported another strong result in 2024 against a more normalised market backdrop.Further operational improvements areresulting in higher levels of customer satis

16、faction and helping tounderpin delivery of more innovative propositions.Alongside this,we have continued toinvest in assets aligned to the changing energy system,creating a range of long-term options ensuring we remain well-positioned to create value today and into the future.Centrica at a glanceStr

17、ategic Report Governance Financial Statements Other InformationWe are an integrated energy company operating across the energy value chain through our distinct,but complementary businesses.Our aim is to create value for all our stakeholders by delivering the energy needed today and the energy securi

18、ty,efficiency and decarbonisation needed for the future.Key figures21,000Colleagues worldwide6,800Field service engineers10m+Customers16.7GWRenewable and flexible assets under management9.5m Gas&power trades in 202450%Of the UKs total gas storage capacity20%Share of the UKs nuclear portfolioOur Purp

19、oseAt Centrica,we are energising a greener,fairer future because we believe in energy that works for our customers,communities and colleagues,today and into the future.Our People&Planet PlanOur People&Planet Plan aims to create a more sustainable future from being a net zero business by 2040 and hel

20、ping our customers be net zero by 2050,to creating the diverse and inclusive team we need to achieve this,whilst making a big difference in our local communities.Read more about our People&Planet Plan on pages 58 to 77,with further information available at communities,our planet and each otherOur Va

21、luesDeliveryCourageCollaborationRead more about our Purpose and Values on page 11AgilityCareCentrica plc Annual Report and Accounts 20243Each of our businesses complements,de-risks and adds value to one anotherRead more on page 14Business overviewRetailThrough our different retail brands,we provide

22、energy supply and services to households and businesses across the UK and Ireland,helping them to decarbonise while ensuring reliable and affordable offerings.InfrastructureWe produce and store gas and electricity every day through our stake in the UKs existing nuclear fleet,our portfolio of renewab

23、le and flexible assets,Spirit Energy and the Rough gas storage facility.OptimisationWe are moving energy from source to use,supporting the responsible buying and selling of energy and managing risk across our portfolio.Chairs statement It is a privilege to be writing to you for the first time as Cha

24、ir of your Company.This is an exciting and demanding time for the sector,and for Centrica specifically,as we look to build on the momentum surrounding the energy transition.Because of our unique position in the sector,and our capabilities,Centrica can play a pivotal role in this transition while cre

25、ating value for our stakeholders.We believe we have the right strategy to do this.Our integrated model ofmarket-leading businesses in energy retail,optimisation and infrastructure,complement,de-risk,and add value to oneanother.The last year has been a year of change across the world.Weve seen electi

26、ons ina number of markets including the UKand Ireland.We look forward to continuing to advocate for the things weknow matter to our customers and working with the new governments to achieve these changes.Sadly,geopolitical tensions remain high.We have stood through these crises,and we have been ther

27、e for customers.That will continue,and we will do what wecan to provide energy security in our key markets.While being a stabilising force within a volatile energy landscape we also bring innovation,boldness and a strong desire to improve customer service.Over the last year weve continued to support

28、 our colleagues,customers,and the countries we operate in.Id like to touch on some of our achievements briefly now.Supporting our customersA successful energy company has more capacity to provide additional support for customers.That is one of the reasons why our performance matters;a successful com

29、pany can be there for customers when it matters most.Our Centrica Purpose,energising a greener,fairer future,puts customers right at the heart of everything we do.Investing and making operational improvements to improve our customer service is a key focus,and this work is never finished.While we str

30、ive to do more,and be better,for our customers Im very happy to see our actions and investments have a material impact on customer outcomes.Over the course of 2024,weve seen further progress in improving customer service in British Gas Services&Solutions a key focus area.Were also delivering an impr

31、oved NPS,a key metric of customer satisfaction,in British Gas Energy.Weve voluntarily committed 140m to support customers since the start of the energy crisis.This dedicated support is especially appreciated by those customers who we know are going through economic hardship.This funding has been put

32、 to good use,with a number of schemes and initiatives being funded.For example,we donated 20m to the British Gas Energy Trust in January 2024,giving the Trust a very necessary funding boost so that it can support those who need it now,and in the future.The British Gas Energy Trust is an independent

33、charitable body that does fantastic work specialising in the support of vulnerable people.In 2023-24,their Strategic Report Governance Financial Statements Other InformationIn the days and years ahead,you will see continued investment,more innovation,and further support for customers through the ene

34、rgy transition.Kevin OByrne,Chairreporting period,they supported 64,500 people in total,through initiatives such asenergy advice and grants,and by fundingover 40 projects in the heart of communities.According to new analysis by Oxford Economics,the Trust has created 264m in societal impact over the

35、past four years.Our colleagues and the Board are really proud that Centrica has been able tofund this work.It is clear in 2023 that we got some things wrong and had some difficult lessons to learn around the practice of installing prepayment meters under warrant,a process which remains paused.This i

36、s clearly a very complex activity for all energy suppliers to manage and we recognised in 2023,following our own review,that we would need to make improvements.Since then,weve implemented a number of changes to our systems,processes,training oversight arrangements,and we remain committed to supporti

37、ng our customers,particularly those that are vulnerable.This is important as there remains a material issue with affordability.In 2024,hundreds of thousands of customers had trouble paying their bill in some way.This is a very serious issue.We have helped where we can.In addition to the support we o

38、ffer through our charity partners,we launched our innovative and first-of-its-kind You Pay:We Pay scheme.This scheme 100%matches payments that eligible British Gas customers who are struggling make into their account to reduce their debt.However,the sustainable solution to this challenge must involv

39、e government,the regulator,energy suppliers and charities.One such solution which we have called for might be a social tariff,underpinned by enhanced data sharing,thatsupports the most vulnerable in society.We must look at this holistically if we are to find a solution that works for customers.Suppo

40、rting our colleaguesSupporting our colleagues is the cornerstone of our strategy.If our colleagues are happy and engaged,then everything else follows.Im hugely grateful for everything our colleagues have done over the course of 2024 to keep safe,look after our customers,and keep Centrica on track wi

41、th our strategy.Thank you.It makes good business sense then for Centrica to invest in its people and improve its leadership capabilities.In 2024 we hired 339 new apprentices,over 100 new interns joined Centrica in the summer of 2024,and 60 graduates came into the business in October as part of our g

42、raduate intake.We also increased hiring in our customer service teams,hiring hundreds of new agents to support our customers and bringing our total Customer Resolution Agents employed to around 3,500.These colleagues will all drive improvements in Centricas overall customer service.We work hard to e

43、nsure all of our colleagues are trained and equipped with what they need in order to do their jobs well.Our colleagues also give freely to their local communities too,and in total,colleagues have given 10,683 volunteering days to local causes during 2024.This is an increase of 37%compared to the pre

44、vious year.All of this is driving change in how satisfied our colleagues are to be working at Centrica.Engagement,a key metric your Board reviews to see how our colleagues are feeling,is at 8.1,comparedto 7.7 at the end of 2023.This improvement is a testament to the work teams across Centrica are do

45、ing to make this a great place to work.You will read in the Remuneration Report that the Remuneration Committee has recommended changes to the pay of our Group Chief Executive.This is a result of an extensive review carried out by the Committee,which will see Chris OSheas total remuneration package

46、being brought into line with the competitive rates paid to other FTSE 100 chief executives.When Chris OShea was appointed Group Chief Executive on 14April 2020,the Company was ranked 154th in the FTSE with a market capitalisation of 1.9bn.Since his appointment,Chris has led the Centrica Leadership T

47、eam to materially strengthen Centrica and create substantial value for stakeholders.On 31December 2024,Centrica was ranked 62nd in the FTSE 100 with a market capitalisation of6.8bn and we have consistently been a constituent of the FTSE 100 Index since 2022.It is important the Committee sets pay at

48、alevel that reflects the individuals contribution to the improvement in business performance,the value created for stakeholders,the size and complexity of running a business like Centrica,and the scale and scope of the opportunities ahead of us.Carol Arrowsmith,Chair of Centricas Remuneration Commit

49、tee,goes into more detail in her statement inthe Remuneration Report.I believe it is important that we pay all employees in the Company competitively based on their role,skills,experience,andperformance.We need to do the same for the Chief Executive so that we can attract and retain high-performing

50、executives with the right skillset to lead an organisation of 21,000 colleagues.I am also very clear that we will only pay for performance,and performance targets set for our management team will be demanding to ensure that is the case.Energy securityEnergy security continues to be a vital considera

51、tion in a number of countries,andCentrica plays a vital role in this space.Centrica Energy is the conduit for this work,and you can see that in practice in the Liquefied Natural Gas supply deal with Repsol announced in February 2024,and two natural gas sale and purchase agreements with Coterra Energ

52、y announced in October 2024.These deals show the breadth of Centrica Energys capabilities in energy trading.At the same time as securing this valuable transition fuel,weve made investments in proven renewable generation technology through power purchase agreements for wind farms and long-term solar

53、power agreements.And weve also innovated,investing in new technologies such as the completion of the 20MW hydrogen-ready peaker in Redditch and weve showcased forward-thinking infrastructure investment such as our 70m investment in Highview Powers Liquid Air Energy Storage in June.As I note below,we

54、 believe that our Rough asset can play an important role inincreasing the UKs energy and price security.We know this work is valuable not only forour business,but also on a macro level.Energy security will continue to beafocus area for Centrica in 2025 andbeyond.PerformanceCentrica performed well in

55、 2024.We delivered Adjusted Basic EPS of 19.0p and free cash flow of 989m.We have a strong balance sheet and a robust asset base.Throughout this report you will find a detailed summary of the performance ofthe business.We extended the Companys share buyback programme by 200m in July2024,by a further

56、 300m Centrica plc Annual Report and Accounts 20245inDecember 2024,and by 500m in February 2025.When this is completed,itwill bring our equity repurchased to 2bn since November 2022(representing approximately 25%of ourissued share capital).Our capital allocation framework remains unchanged.While we

57、look to invest shareholder funds in a disciplined way,when we consider we have surplus capital we will decide how best to return that capital to shareholders.Additionally,we returned capital to shareholders in the form of dividends,which came to 4.5p at the end of 2024,inclusive of a 1.5p interim di

58、vidend outlined in July.As laid out in July 2023,Centrica aims to invest 600m-800m a year in projects across our key priorities up to 2028,and were making progress against this aim.In2024 Centrica capital expenditure was 564m(up from 415m in 2023).This target is challenging to meet given our strict

59、investment criteria.The Board works closely with the executive on the investment plans so decisions made result in Centrica being a resilient and more valuable investment for you well into the future.Taken together with the underlying performance of the business,I believe theinvestment case for Cent

60、rica is compelling.We also make material tax contributions in the countries in which we operate in.In total,including the Electricity Generator Levy,National Insurance and other similarcontributions,we paid 1bn togovernments during 2024.Delivering net zeroWe have a strong commitment to net zero whic

61、h we make clear in our Purpose:energising a greener,fairer future.Your Board is intimately involved in ensuring we make meaningful progress and as part of this,they have been fully involved in developing and approving our updated Climate Transition Plan launched in January 2025.This builds on our Pe

62、ople&Planet Plan launched in 2021,which includes five Group-wide goals that accelerate action on achieving net zero and building a more inclusive future.It outlines the team we need to build in order to get to net zero,the targets we want to meet,and how wecould make a difference in our local commun

63、ities on this journey.With the progress weve made and the insights and experience weve gained since then,we have a better understanding of the risks and opportunities as well as the dependencies relating to net zero.This has enabled us to strengthen our commitments in our updated Climate Transition

64、Plan and provide greater transparency around the dependencies and challenges,and exactly how Centrica will drive forward the energy transition.We are committed to holding ourselves to account through a new suite of improved climate ambitions.For example,all Centrica customers in the UK and Ireland w

65、ill be supplied by renewable or zero carbon power by 2030,and we will significantly expand our Hive platform to help customers save money and carbon.We have also set bold ambitions to decarbonise our key operations within the 2030s through our green-focused investment programme,such as our plan to t

66、ransform depleted gas reservoirs in Spirit Energys Morecambe site into one of the UKs biggest carbon storage hubs.I am mindful that we need to balance many dependencies here;energy security,employment,pricing for customers,returnsfor investors,and,of course,the environment.There are few easy answers

67、 to this,but the Board and management team are committed to the goals and will endeavour to make the best decisions out of the options available to us.Future plansAt Centrica we have a strong governance framework and a strategic focus on key issues.I want to offer you my assurance as yournew Chair t

68、hat Centrica remains committed to disciplined decision-making.Our stewardship of your investment is paramount,and Centricas investment committee is focused on getting shareholders a suitable return.While we are confident in the investments weve made in 2024,weve also turned down many opportunities.W

69、ewill not invest unless the relevant criteria are met.Well also continue to make the case forprojects that could benefit allstakeholders such as the redevelopment and expansion of the Rough gas storage facility.We expect Rough to make a loss of between 50m and 100m in 2025.We have completed all of t

70、he preparatory work to enable a2bn investment to be taken to redevelop Rough for gas and hydrogen storage over the next 45 years,but without a regulatory model to underpin the investment,we cannot make this investment.While the site plays an important role in the UKs energy and price security,and ca

71、n be acrucial part of the future hydrogen economy,making material losses is not sustainable on an open-ended basis andwe will update on the future of Rough in the coming months.BoardMy transition from Senior Independent Director to Chair has been straightforward.I want to thank Scott Wheway for his

72、tenure at Centrica and personal guidance.It was a privilege to work closely with Scott since I joined the Board.I hope you will all join me in thanking Scott for his very valuable contribution to Centrica at a critical time in the Companys history.I am delighted that Jo Harlow has agreed to become S

73、enior Independent Director.Jo has extensive board and executive experience which the Board and I will benefit from.I am committed to leading an effective Board that works in a constructive way with the executive to build a stronger Centrica that creates value for our stakeholders.This year we perfor

74、med an independent external review of the Boards effectiveness.Im pleased that the review concluded that the Board is operating effectively.There were a number of potential actions identified that would help to further strengthen the Boards effectiveness,which we intend to progress in 2025.ClosingFi

75、nally,I want to say thank you to Centricas customers,colleagues,and stakeholders for their continued support and trust.I will work tirelessly to ensure that support and trust is well placed.In the days and years ahead,you will see continued investment,more innovation,and further support for customer

76、s through the energy transition.While challenges remain,Centricas capabilities,infrastructure,and dedicated team position it well for continued growth and success.Kevin OByrne,Chair19 February 2025Strategic Report Governance Financial Statements Other InformationGroup Chief Executives statement The

77、main job of a Chief Executive is to create value for the owners of a company.I know that may be obvious,but too many companies can appear to lose focus on the job at hand with the ever-increasing environment,social and governance(ESG)requirements.So,I wanted to reassure you,our owners,that Inever fo

78、rget that I work for you,our shareholders;and I am focused on creating value every single day of the year.This means focusing on operational improvements to our businesses,giving customers what they want and not what is easiest for us to offer,and investing in assets that create value aligned to the

79、 changing energy system.Thats not to say we dont take our broader responsibilities seriously at Centrica how we do what we do is as important as delivering results,because the way we go about our job will determine whether what we do is ultimately sustainable.We are energising a greener,fairer futur

80、e every day,but we never lose sight of the job at hand value creation.For Centrica,we dont see a conflict between these aims the energy transition is a huge opportunity for your Company.The opportunities to create value for your Company are truly huge.Electricity demand is growing and were seeing so

81、me of that growth come from new areas entirely.For example,around 90%of all data in existence has been created this decade.That may tellyou that we are poised to unleash unbelievable advances based on data;alternatively,it may tell you that were creating a lot of“stuff”that well never use.As with ev

82、erything,the truth is probably somewhere in between.For your Company,however,what this means is huge growth opportunities.All of the data being created needs to be stored,and for it to be useful,itneeds to be processed by ever more powerful computers.This storage and processing of data requires ener

83、gy;lots andlots of energy.Energy has driven progress for the past 200+years;from the energy used to create the steam which drove the industrial revolution,to the energy required today to drive the technology revolution which is in full swing.And those companies who can offer the best,most cost-effic

84、ient service to increasingly energy-intensive customers will benefit most;companies like Centrica.Thats not to say it will be easy whilst weve made huge improvements in our performance over the past few years,wecan push ourselves to go further.In 2025 we plan to increase the pace of change in our or

85、ganisation to become even more entrepreneurial and less bureaucratic;even more focused on operations serving the commercial outcome;even more purposeful than hesitant;even more focused on how to make a good decision rather than how to avoid making a bad decision;even more focused on what is good for

86、 Centrica as a whole(what I call“good for the house”)than good for individual businesses.Whilst we are so much better than we were,the pleasing thing is that there is still so much to go for despite progress,our opportunities today are greater than Ive ever seen them.Centrica plc Annual Report and A

87、ccounts 20247I believe,as I always do,that Centricas most exciting,impactful,and successful days lieahead.Together,we can energise a greener,fairer future.Chris OShea,Group Chief ExecutiveWe owe it to you,our shareholders;weowe it to our 21,000 hard-working colleagues;we owe it to our 10m loyal cust

88、omers.We will not stop in our pursuit of excellence.ChangeLast year I said that change was the only constant in our sector.Whilst it is an overused phrase,it is undeniably true.In2024 weve seen significant change tothe external environment in our core markets.In particular,the UK,Ireland,andthe USA

89、have all had major elections.We now know that the UK has a Labour Government,President Trump is back inthe White House,and Ireland has continued with a Fianna Fil and Fine Gael led coalition.As governments across the countries we call home focus on their ambitious targets for growth and net zero,I w

90、ant to take this opportunity to acknowledge those targets.We will do our utmost to help those countries we serve achieve their goals.We are ready for the transition,and we welcome any ambition to go further,faster.And whilst we dont have major operations in the USA,we buy a lot of gas from the USA(i

91、nthe form of Liquefied Natural Gas)which makes it a key country for us.Centrica has always been,and will always be,at the forefront of change.The Company I am so privileged to lead for youwill play a leading role in the energy transition,regardless of the technologies that win out.We are well placed

92、 to be there for our customers,as we were through the energy crisis of the last few years.We will rise to the challenge in front of us,all while we are driven by our Purpose to energise agreener,fairer future.Business performanceOur CFO,Russell,has a detailed commentary on how your Company has perfo

93、rmed in 2024(see page 26),but I wanted to touch on the highlights here.Im pleased to say your business has performed very well against a backdrop of more normalised market conditions.The Group is working better together,and thats making a difference for all of our customers.Our Group adjusted operat

94、ing profit was 1.6bn compared to 2.8bn at year-end in 2023,with Adjusted Basic EPS of 19.0p in 2024 compared to33.4p in 2023,and free cash flow of 989m.Our net cash position remains strong at 2.9bn,much of which we plan to invest to ensure we can continue to perform just as strongly in the future.Gi

95、ven some one-offs in the 2023 results,we can now see a more normal result from the Group and its a strong result.The updated strategy we unveiled in 2023 remains sound,and it is bearing fruitfor colleagues,customers and shareholders.We will continue our programme to re-invest around 4bn in the years

96、 leading up to 2028,but only for projects with the right balance between risk and reward,and only if the regulatory frameworks support investment.There is much that is outside of our control,but when we see an opportunity that works for Centrica,that delivers value for our shareholders,we will go fo

97、r it.How we do what we do at CentricaWe keep things simple at Centrica.We have a purpose(energising a greener,fairer future);we have five core values(Care,Collaboration,Courage,Agility and Delivery);and we have a belief in a flat structure with as little management as possible(no more than six layer

98、s from the Centrica Leadership Team,essentially mydirect reports,to the front line).Ourculture is what sets us apart.While we have materially improved our operational delivery over the past few years,we must be even more agile and even more courageous.We have allowed some of the bureaucracy we elimi

99、nated to come back in,slowing us down by spending too much time doing business with ourselves.We will fix this in 2025 byintroducing more focus into our organisation during COVID-19,we were very focused and we achieved amazing things.We need to recreate an environment where were never comfortable,wh

100、ere were willing to try new things,where were positively dissatisfied;a culture of innovation and invention.The answers to the issues facing our Company could come from any of our colleagues,whether they are on the phones,in the vans,in the plants,on the offshore platforms,or the power stations.Part

101、 of my job is to ensure we Strategic Report Governance Financial Statements Other InformationOur Senior Leadership Team(SLT)is made up of my direct reports and their direct reports around 100 people.We get together each quarter to ensure cohesion and alignment.We have three key themes to help drive

102、the cultural change we need to see to become more agile,more courageous,more collaborative and to deliver even more:One teamFirst and foremost,we work forCentrica.So,the question every leader must ask themselves is is this good for the house when faced with making a decision.OwnershipWe must own the

103、 outcome of our actions,not assuming that someone else will fix something we see which needs fixing,and asking ourselves whether what we are doing will improve things for our customers.Growth mindsetWe must innovate and try new things;asking ourselves why not rather than why when someone suggests a

104、new idea;asking ourselves what needs to be true to make something work rather than state why something wont work.If we can continually live by these three themes and demonstrate our five core values,we will continue the evolution of our culture,delivering a step change in our performance and creatin

105、g material value for you,our shareholders.get to hear to those views.Whilst we hear from our colleagues regularly,conducting colleague engagement surveys four times a year,I think we can be much bolder with the actions we take as a result of hearing those views.And Im delighted that despite this bei

106、ng the fourth year of quarterly engagement surveys,we still see around 80%of colleagues participate in every survey Im truly grateful to colleagues for sharing their views,and we will do better to implement their ideas.Commitment to our customersNobody can deny that the energy transition is now in f

107、ull flow.But what the energy transition will ultimately look like,nobody can say.We know the destination(an energy system which has minimal,if any,carbon emissions)but what we dont know is the precise route nor the time of arrival.Go too fast,and countries could lose economic competitiveness and suf

108、fer a huge reduction in living standards;go too slow,and the planet could be irrevocably damaged.The stakes are high.At Centrica,we are agnostic about the technology that will get us to net zero.We believe that pragmatism should win out over ideology,and we are always thinking of how we navigate the

109、 energy transition in a way which is best for our customers,delivering a future where energy is affordable,secure and clean.In some circles this is referred to,rather grandly,as the energy trilemma,but to me this means that we have to be careful we dont go down the path of the ideologue,creating cle

110、an but unaffordable energy which is not available on demand.Over 2024 we invested significantly in our customer service and were seeing big improvements as a result.Customers are happier with our service,and complaints are falling.This is achieved byvery simple things like answering customers calls

111、in seconds rather than minutes and improving the experience when customers contact us.We have even further to go,but Im really happy tosee these improvements.Beyond investing in our customers,during 2024 we have invested in liquid air energy storage in our partnership with Highview Power;we have inv

112、ested in pursuing the opportunity to build a new nuclear power station(Sizewell C)in Suffolk in the UK;we have invested in batteries and solar;we have invested in technology which gives better customer service and helps customers reduce energy bills and carbon emissions;we have invested in our plans

113、 to store CO2 in the Morecambe Bay gas fields;we have invested in plans for clean hydrogen production and storage.But we have also invested in gas fired power stations;we have invested in the plans to extend the Rough gas storage facility;we have signed new LNG deals.We will need a mix of technologi

114、es to deliver net zero and we will need natural gas as part of the energy mix for decades to come to enable full use of renewable power.What drives us is giving our customers what they want and need,andgenerating a good return for our shareholders whilst doing so.Commitment to our new PurposeA littl

115、e over a year ago we announced ournew Purpose;energising a greener,fairer future.Everything we do is a step towards living this Purpose fully for our customers,for the environment,and the countries we operate in.This will make the value we create sustainable in the truest sense of the word it will b

116、e repeatable and will deliver consistently over a long period of time.To seize this opportunity,we outlined ourgreen focused investment strategy in2023.This will see us ramp up our totalinvestment into green activities tomore than 50%between 2023-28 in energy security of supply and flexibility,renew

117、able and low carbon generation,as well as customer offerings that advance the transition to net zero.Were making good progress having reached over 30%green investment already a big step up from less than 5%back in 2019.This reflects our commitment to move at pace in aligning our business model to ne

118、t zero.Our in-house green classification system is built on the foundations of the EUs Sustainable Taxonomy.However,its by-inclusion format can today be restrictive,so wejustify our own independent classifications where appropriate.Wewant to be active in shaping official taxonomies and plan to engag

119、e with bothEU and UK policy makers to ensure they capture all activities in the right way.We will publish any deviations from official taxonomy reporting.One example of our investment that Imreally proud of is our new Meter AssetProvider(MAP)business.This investment,combined with advances inDemand S

120、ide Response(DSR),will mean that customers reduce their carbon footprint at the same time as saving money.In 2024 we installed a million smart meters for customers,half of thesewere through our MAP business,providing the Group with a steady source of income for years to come while still helping cust

121、omers decarbonise.Building on all of this work,we published an updated Climate Transition Plan in early 2025.This plan is our clear,actionable roadmap for net zero,and it outlines the detailed goals we will meet inorder to drive change.We now believe that committing to faster decarbonisation is achi

122、evable and will drive value creation in your company as we place Centrica at the heart of the energy transition.Again,this is not blind ideology,it is a hard-nosed business decision but the fact that it has positive implications for the environment is particularly pleasing.Most notably,weve brought

123、forward ourtarget to become a net zero business to 2040,five years ahead of the 2045 timeline set by the original plan and 10years ahead of 2050.Weve also maintained our commitment to get customers to net zero emissions by 2050.Theres much more detail in the full plan and Id encourage you to take so

124、me time to read through it were very proud of it.And were doing this because its good for Centrica and we can create value from doing it its not an ideologically driven pursuit,rather its grounded in pragmatism.We will play our part in creating a robust energy system that meets todays demands and an

125、ticipates future needs.Centrica plc Annual Report and Accounts 20249Commitment to our colleaguesOur performance also means we can support our colleagues.Our innovative profit share scheme continues,which means our people share in the success theyve helped create we take 2%of the Groups pre-tax profi

126、ts,divide it by the number of colleagues we have,and everyone gets the same allocation of shares.We started this in 2022 and someone who has been with us since we started this will have 5,886 of Profit Share payments with another 1,400 of profit share to come for 2024,making total Profit Share payme

127、nts so far of 7,286-plus any share price growth on the awards.This allows colleagues to share directly in the success of the entire Group and encourages colleagues to think like shareholders.Were exploring additional ways that colleagues can invest in the value they create at Centrica,and I hope to

128、be able to share more information on this in 2025.Were also committed to investing in the next generation of Centrica colleagues.Wewant to create one new apprenticeship for every day of this decade,and in 2024 wehired 339 new apprentices,creating new skilled green jobs with colleagues training at ou

129、r award-winning in-house academies.Our internship programme saw unprecedented success this year,with over100 interns joining Centrica in the summer of 2024,andwe welcomed 60 new colleagues in October as part of our graduate intake.We have developed pathways for ex-military service people andtheir sp

130、ouses,for ex-Olympic and Paralympic athletes,in an effort to increase our diversity and change how we think.I am particularly committed to these early career initiatives for two reasons:getting my first trainee job changed my life and I want to be able to do that for others;and our new colleagues br

131、ing different perspectives and experiences to our teams,making us think and act differently,changing our culture for the better.Commitment to societyI believe companies have a responsibility to contribute to the society in which they operate,and a big part of this is the way our colleagues interact

132、with the world around them through volunteering.Im always impressed by the dedication andcommitment of our people,but this year their effort has been astounding,andas a result we reached our stretch volunteering target early.Our aim was to hit 8,000 volunteering days by the end of 2024,but we met th

133、at goal in October and went on to hit 10,683 days for the year.This allows us to put back into the community,but it also allows us to build our team spirit and strengthen our bonds.Beyond volunteering,weve made 3.6min charitable donations over the course of 2024,and contributed 1bn ofcorporation tax

134、 and other payments inthe year.The partnerships I outlined last year with Team GB,ParalympicsGB,Scottish Rugby,and the Scottish Football Association have all been dialled up in 2024.For example,ourpartnership with the Scottish Football Association saw us launch 120 new week-long Scottish Gas Footbal

135、l Camps to provide 6,000 children from all socio-economic backgrounds the opportunity to play football during the school holidays and we provided hot meals to every child at those camps,helping alleviate the hunger which vulnerable children can experience during school holidays.And alongside Team GB

136、 and ParalympicsGB we launched Get Set for Positive Energy,our bespoke schools programme which aims to reach up to one million families and children.These partnerships are so much more than simple brand sponsorship deals.The future for CentricaLooking ahead to 2025,I believe were onthe right path.We

137、ll continue to up thepace and our expectations continue to rise every single year.We have the capability,the market positions,and the drive to deliver material value for all of our stakeholders.I would like to take a moment to thank ourformer Chair,Scott Wheway,for the contribution he has made to Ce

138、ntrica,chairing the Board through a period of significant volatility and change for the Company.On a personal level,Scott has been a huge support to me,and I have learned a lot from working with him.Centrica is a very different company to the one Scott asked me to lead in early 2020,and Scott leaves

139、 with the business in a great position.And Id like to welcome Kevin OByrne tothe role of Chair,having started at the end of 2024.Kevin brings a wealth of experience and a deep familiarity with Centrica to the role having joined the Board in May 2019 and assuming the role of Senior Independent Direct

140、or in June 2022.Kevin is uniquely equipped to help Centrica deliver on the work ahead,and Im excited to continue to work with Kevin and the Board to drive your Company forward.As always I want to finish by extending my heartfelt gratitude toward Centricas colleagues,customers,and partners for their

141、collective efforts in making 2024 another year of progress,and to you,our shareholders,for placing your trust in me to lead this great company.Im optimistic about the year ahead.Were ready to lead our business through this time of transition,doing the right thing for all stakeholders.I believe,as I

142、always do,that Centricas most exciting,impactful,and successful days lie ahead.Together,we can energise a greener,fairer future.Chris OShea,Group Chief Executive19 February 2025Strategic Report Governance Financial Statements Other InformationOur Climate Transition PlanCentrica to be a net zero busi

143、ness by 2040Customers to net zero emissions by 2050LNG shipping will be net zero by 2035Upskill 3,000 engineers with green skills by2030Gas production and gas storage to be net zero by 2035Zero emissions vehicle fleet cars by 2026 and vans by 2030Read more about our wider Climate Transition Plan on

144、page 73Our Purpose and ValuesCentrica plc Annual Report and Accounts 202411Our Purpose is energising a greener,fairer future because we believe in energy that works for our customers,colleagues and communities,today and in the future.As we evolve to meet tomorrows challenges and prepare for a net ze

145、ro future,we are always guided by our Values,which remain firmly embedded in our company culture and honour our proud heritage.Our Values.Care:We do the right thing for our customers,colleagues,communities andplanet.We recognise the impact we can have on others,do all we can to keep each other safe

146、and always do the right thing for all our stakeholders.Collaboration:We bring in diverse perspectives to create a better future together.We trust each other,work across boundaries and welcome different views and perspectives.Courage:We are bold and push ourselves tofind better solutions to every cha

147、llenge.Wecontinuously challenge the way we do things,explore new possibilities and take responsible risks that help the business tochange and progress.Agility:We make progress at pace by focusing on what matters and learning from setbacks.Wecontinuously improve the way we do things,prioritise those

148、activities that will deliver the best results and adapt quickly when things go wrong.Delivery:We do what we promise,on time,every time,to move forward every day.We ensure we takepersonal responsibility for getting things done and delivering great outcomes that make things better for our customers an

149、d the business.We provide support to customers who have been impacted by the cost of living crisis through targeted and meaningful schemes such as You Pay:We Pay andthe British Gas Energy Trust,which was established in 2004 to alleviate fuel poverty.Through our investments in nuclear,battery and sol

150、ar assets,we generate zero carbon power and we work across our business units,with government,with regulators and with investors to provide green,affordable energy to our residential and business customers.Through Spirit Energy,we are aiming to repurpose the Morecambe gas fields for carbon capture a

151、nd storage,leading the way for this technology to be deployed at scale inthe UK.The Morecambe Net Zero Cluster has the potential to be the UKs biggest carbon storage hub,able to store the equivalent of three years worth ofthe UKs CO emissions.In December 2023,we installed our first smart meter throu

152、gh our in-house Meter Asset Provider(MAP).Our initial pilot installations provided us with key learnings,allowing us to adapt quickly and refine our approach.We are continuing to accelerate the MAP business,with 447k Centrica-owned meters installed.We value delivering great service and customer outc

153、omes.This year we have invested significantly incustomer service,leading to reduced complaints,faster call answer speeds and positive improvement in Net Promoter Scores(NPS)across our retail businesses.in actionOur stakeholdersStrategic Report Governance Financial Statements Other InformationEngagin

154、g our key stakeholders enables us to serve them better,creating stronger outcomes for people,planet and our business.Section 172(1)Companies Act2006 Statement The Directors consider that they have performed their duty as required under Section 172(1)(a)to(f)of the Companies Act 2006 by promoting the

155、 success of the Company for the benefit of our members and stakeholders through their decision-making.These pages set out our key stakeholders.Further detail on how the Board engaged and balanced the needs of different stakeholders during 2024,together with principal decisions made as a result,are d

156、isclosed on pages 94 to 97.Energy is central to everyday life from how we run our homes and businesses,to the way we travel around.Effective stakeholder engagement is therefore key because the choices we make and the action we take,can impact a diverse range of stakeholders.Thats why we carefully li

157、sten to and consider stakeholder views so that we can understand their concerns or needs andevolve our strategy accordingly.Indoing so,we can drive meaningful change by tackling challenges and harnessing opportunities to energise agreener,fairer future.Engagement is often led by senior leaders who r

158、egularly update the Board.This equips the Board with the knowledge to make informed decisions,that fully consider the long-term consequences of its decisions,from theperspective of ourdifferent stakeholders.Our key stakeholdersWhy theyre importantOur ability to attract and retain customers is fundam

159、ental to our survivalas a company.By actively listening to their needs and feedback,we can provide services and solutions that meet their expectations and earn their trust.What they care about Customer service,competitive energy prices,bill support and affordable energy management as well as low car

160、bon services and solutions.How we engageWe connect with customers through surveys and focus groups alongside proposition and usability testing.Using this output,we can help customers save time,money and energy.Dedicated channels are alsoprovided to ensure support for those who need extra help with t

161、heir energybills.Outcome exampleIn response to customer feedback,we focused on driving strong operational performance across our customer-facing teams and customer service systems.The Directors monitored performance and continued to invest inempowering colleagues to deliver a great service whilst mi

162、grating most of our residential British Gas Energy customers to the new,flexible customer platform.As a result of a better service provided to customers,we experienced lower complaints and higher Net Promoter Scores.Why theyre importantPositive engagement empowers our team to live by our Purpose and

163、 Values,whilst creating a culture where every colleague counts.In turn,this helps us attract,promote and retain the diverse and talented team we need to deliver our strategy,leading to better customeroutcomes.What they care about Health,safety,wellbeing,reward,development,inclusion,engagement and co

164、mmunication.How we engageColleague voices are heard through arange of channels including our colleague networks,Shadow Board,townhalls,focus groups,surveys and engagement with trade unions.These interactions help create a safer and fairer workplace with competitive rewards,alongside inclusive traini

165、ng and action plans.Outcome exampleFollowing feedback from colleagues which identified an opportunity to enhance colleague connection with theCompany,a new Purpose was developed with their help.With Board consideration,energising a greener,fairer future,was launched and every team had sessions to un

166、derstand how they contribute to it.We also introduced our Employee Value Proposition,#MoreThanACareer,to reinforce what it means to work for us.Achieving a stronger connection to our Company and its Purpose,helped contribute to our top quartile engagement score.Why theyre importantShareholders and d

167、ebt holders provide vital funds that support the running of our business and long-term growth.With ashared commitment to our success,wecan focus on delivering sustainable investments and progress alongside growth and returns.What they care about Financial and operational performance,shareholder retu

168、rns and dividend,strategy and growth,alongside Environmental,Social and Governance(ESG)matters including net zero.How we engageWe primarily utilise post-financial result investor roadshows,the Annual General Meeting(AGM)and ad-hoc meetings toengage investors.We also respond to information requests a

169、nd assessments from ESG ratings agencies.Engagement helps us consider and reflect the views ofdifferent investors.Outcome exampleWe held dedicated meetings,workshops and webinars with investors to understand their expectations and secure their support for our updated Climate Transition Plan.The Boar

170、d has been intimately involved in the development and approval of the Plan,which took into account the full range of investor views.At the AGM in 2025,the Plan goes for a non-binding shareholder advisory vote.Why theyre importantGovernments and regulators determine the framework in which we operate.

171、Working together in a constructive wayhelps to create a stable regulatory environment where policy is developed inthe interests of consumers,whilst ensuring a sustainable and investablemarket.What they care about Market design and operation,customer service,skills,inclusion,net zero,energy security

172、and affordability.How we engageTo exchange expertise,we participate in consultation processes,attend meetings and host technology teach-ins as well as roundtables and site visits.This enables us to inform policy and reforms that support a more secure,affordable andinvestable energy market whilst adv

173、ancing the energy transition.Outcome exampleAlongside the British Gas Energy Trust,we held roundtable events with stakeholders across the UK to discuss solutions for alleviating fuel poverty in the long-term.Clear recommendations arose from the sessions which were shared with policymakers and includ

174、ed the introduction of social tariffs and increased access to energy efficiency programmes.The Trust alongside Directors and members of Public Affairs,are working with the Government to explore co-ordinated action.Why theyre importantOur suppliers are essential partners in ensuring the reliable supp

175、ly of services and solutions for customers and our operations alike.To reduce supply chain risk,we engage suppliers to foster a deeper connection and ensure they uphold the same high standards as us.What they care about Payment practices and long-term partnerships alongside ESG compliance and transp

176、arency on important matters like human rights.How we engageWe engage suppliers through various methods including tendering,onboarding surveys,site audits and remote worker surveys.These interactions ensure fairpayment and enforcement of our Responsible Sourcing Policy,aligning with standards that be

177、nefit people and planet including compliance with anti-modern slavery laws.Outcome exampleMembers of the Board reviewed the effectiveness of our Responsible Sourcing strategy,focusing on areas that have a higher risk to human rights such as the manufacturing of solar panels and garments.Outcomes of

178、supplier audits alongside the views of supply chain experts,were considered by the Directors when reviewing and approving action plans.No instances of forced or compulsory labour were found in our supply chain but we remain vigilant.Why theyre importantCharities,non-governmental organisations(NGOs)a

179、nd community groups,help us understand the causes that local communities care passionately about.Using our money and expertise,wework together to build a fairer,more sustainable future.What they care about Tackling social and environmental issues like fuel poverty and climate change.How we engageThr

180、ough meetings and research,we understand community issues and identify the role we can play to make the greatest difference from donating to the British Gas Energy Trust to provide expert advice and grants alongside energy efficiency measures that help reduce energy bills and emissions,to volunteeri

181、ng,fundraising,and sponsoring local organisations.Outcome exampleMembers of the Board continued to oversee our local community strategy toensure it remains effective in meeting the diverse needs of our communities.In2024,this saw us invest over 2m and nearly 11,000 volunteering hours to good causes

182、via The Big Difference,our local community programme.eCentrica plc Annual Report and Accounts 202413Business overview Strategic Report Governance Financial Statements Other InformationCentrica is an integrated energy company,comprising a balanced portfolio of market-leading businesses in energy reta

183、il,optimisation andinfrastructure that is positioned to create value for all stakeholders through the energy transition.Each of our businesses complements,de-risks and adds value to oneanother OptimisationOur business unitsRetailWe are focused on providing a leading customer experience for energy su

184、pply and services across the UK and Ireland,helping customers to decarbonise through innovative offerings.British Gas EnergyBritish Gas has been supplying energy to UK homes for over 200 years.In British Gas Energy,we are strengthening our operations todrive innovation,retention and better customer

185、outcomes,supporting long-term profit sustainability.British Gas Energy also includes our Meter Asset Provider(MAP)business,which is building a portfolio of smart meters.British Gas Services&SolutionsBritish Gas Services&Solutions provides customers with repairs,home improvements,maintenance and heat

186、ing installations through our British Gas,Dyno-Rod,and PH Jones brands.Our New Business and Net Zero business is also included under Services&Solutions,which provides customers with net zero technology such as Hive smart thermostats,EV chargers,heat pumps and rooftop solar.Bord Gis Energy(1)Bord Gis

187、 provides energy supply,services and solutions for residential and business customers in the Republic of Ireland and also operates and optimises critical power generation assets.Bord Gis is creating value from its integrated model,investing in the future energy system to help underpin energy securit

188、y and decarbonisation in Ireland.Key stakeholders6,800Field service engineers10m+Customers(1)Within the Group Chief Financial Officers Report,Bord Gis is included within Retail.We are investing to build a low carbon,reliable energy system including clean power generation,gas production,flexible peak

189、ing generation and energy storage.Centrica NuclearCentrica Nuclear has a 20%interest in the UKs portfolio ofexisting nuclear power stations.We extended thelives of existing nuclear power stations in 2024 and are exploring further investment in nucleargeneration.Centrica Energy Storage+(CES+)CES+is t

190、he owner and operator of Rough,theUKs largest gas storage facility,helping manage seasonal demand and energy security.CES+has increased the capacity at Rough to 54bcf and continues toexplore its role in the future ofhydrogen.Spirit EnergySpirit Energy is a joint venture with Stadtwerke Mnchen(SWM)fo

191、cused on oil and gas production from existing UK assets to fuel homes and business across the UK and Europe.Spirit Energy was awarded a carbon storage licence for Morecambe Bay,which has the potential to be the UKs largest carbon storage hub.Key stakeholders54 bcfOf gas storage capacity at Rough(equ

192、ivalent to heating 2.4m homes through winter)20%Share of the UKs operating nuclearfleet(2)Infrastructure is shown as Upstream in Segmental Reporting in the Financial Statements.(3)Within the Group Chief Financial Officers Report,CBS is included within Optimisation.We are moving energy from source to

193、 use and accessing the value from green generation,while continuing to build out the flexibility required for the future energy system.Centrica EnergyCentrica Energy is our global energy trading arm,which supports the responsible buying and selling of energy and provides energy management and optimi

194、sation services to businesses,while managing commodity risk and providing wholesale market access for the Group.Centrica Business Solutions(CBS)(3)CBS includes energy supply and low carbon solutions for large businesses,and our portfolio of battery,solar and gas-peaking assets across the UK and Euro

195、pe.CBS isbeing reorganised,such that energy supply and low carbon solutions for business will sit under British Gas Energy and Services&Solutions,respectively,while the asset portfolio will sit under the new Centrica Power,along with our nuclear interests.Key stakeholders28Trading markets16.7GWRenew

196、able and flexible assets under managementCentrica plc Annual Report and Accounts 202415Infrastructure(2)Our stakeholdersCustomersColleaguesInvestorsGovernment and regulatorsSuppliersCommunities and NGOsMarket trendsStrategic Report Governance Financial Statements Other InformationThe drivetonetzeroT

197、he UKs commitment to achieving net zero emissions by 2050 is accelerating investments in clean energy sourceslike wind,solar and nuclear,and increasing policy support for electrified heating and transport.A more flexibleenergy systemWith more unpredictable and intermittent energygeneration coming fr

198、om renewables,theenergy system of the future needs to become more dynamic and responsive to balance supply,demandand storage.Affordability and living costsWhile inflation has stabilised in recent months,prices remain elevated,and our customers are still facing challenges from high costs and a challe

199、nging economic situation,with some customers struggling to pay bills.Technological transformationAdvances in technology,such as artificial intelligence and machine learning,are revolutionising the energy sector,unlocking opportunities to improve customer propositions,reduce costs,andbetter manage ou

200、r energy balance.Our key market trendsThe energy system is undergoing a fundamental transformation,becoming more electrified,more intermittent and more decentralised,while consumers are looking for more bespoke propositions to help manage their energy needs.Centrica plc Annual Report and Accounts 20

201、2417The drive to net zeroWe are committed to being a net zero business by2040 and helping our customers to be net zero by 2050.Last year we launched our New Business and Net Zero business,specifically focused on helping customers through this transition.We are redeveloping Brigg Energy Park which,on

202、ce complete,will be home to a 50MW battery and 100MW of hydrogen-ready gas peaking capacity.We manage 16.7 GW ofrenewable energy and flexible assets,helping to promote green infrastructure development and provide clean power to customers.Our responses to an evolving marketA more flexible energy syst

203、emIn 2024,we committed 120m to battery and gas peaker developments,which provide greater system security and meet near-term system flexibility needs.We partnered with Highview Power to develop a first-of-its-kind liquid air energy storage project that can store energy for several weeks,much longer t

204、han batteries,providing additional resiliency to the grid.We installed 1.1m smart meters in 2024,allowing devices like electric vehicles,home batteries and heat pumps to enable more flexible energy demand,lowering customers energy bills and placing less strain on the grid.Affordability and living co

205、stsIn response to the energy crisis,during 2022-23 we created a voluntary support package of 140m to support customers struggling with energy bills.This has enabled us to continue supporting customers this year through initiatives likethe You Pay:We Pay scheme launched in March,which supports our mo

206、st vulnerable customers by matching 100%of their energy payments.We continue to innovate tariff offerings such as PeakSave Sundays and Green Flex,to ensure that our customers have access to the lowest cost energy rates that meet their needs.Technological transformationIn 2024 we acquired ENSEK,a lea

207、ding provider ofdigital transformation services in theenergy sector.The migration of residential customers toour new innovative customer account management platform is nearly complete,reducing back-office processes and enabling more innovative,flexible customer offerings.We supported increased custo

208、mer engagement inhome energy management through the sale of 348k Hive smart thermostats.Through our Optimisation team,we have implemented a framework foralgorithmic trading,enabling moresystematic and efficient tradingoperations.As the pace of change continues to accelerate,were responding by focusi

209、ng our efforts onhelping to deliver and use energy in a more efficient and sustainable way.We are continuously improving,adapting and innovating our offerings to help build a greener andfairer energy system for the future.Our strategic value driversStrategic Report Governance Financial Statements Ot

210、her InformationWere adopting a simple,focused approach to capitalise on the growth opportunities presented by the energy transition.Our strategy is to create value by delivering the energy needed today and the energy security,efficiency and decarbonisation needed for the future.Investing for valueIn

211、vesting to make Centrica amorepredictable business with strong returns across the integrated pillars of our businessCommercialfocusInnovating to deliver compelling customer propositions and building optimisation optionalityOperational excellenceContinuously improving to increase our efficiency,reduc

212、e costs and enhance customer satisfactionPositioned for achanging energy systemPeoplePlanetOur People&Planet PlanOur People&Planet Plan aims to create a more sustainable future from being a net zero business by 2040 and helping our customers be net zero by 2050,to creating the diverse and inclusive

213、team we need to achieve this,whilst making a big difference in our local communities.Read more on page 22Read more on page 20Read more on page 24Read more on pages 58 to 77Creating value through the energy transitionCentrica plc Annual Report and Accounts 202419As we move to the next phase of our st

214、rategy,we are strengthening the foundations for Centricas growth by delivering sustainable earnings and investing forlong-term value.Positioned for a changing energy systemOperational excellenceCommercial focusInvesting for value Electricity demand in our core markets is set tomaterially increase by

215、 2050,driven by the electrification of transport and residential heating,as well as emerging demand from areas such as data centres.Meanwhile,power grids are expected to become more complex,with an ever-increasing reliance on greener,but more intermittent,renewable generation capacity.Customers are

216、also becoming increasingly engaged in home energy management,which will drive increased demand for innovative customer propositions.With market-leading positions across the energy value chain,our portfolio is well-positioned to benefit from these trends,as each of our businesses de-risks,complements

217、 and adds value to the others.These dynamics also provide us with significant future opportunities aligned with our strategy andnet zero ambitions.Since we refreshed our strategy in 2023,Centrica has been on a journey to enhance the experience for our customers,by ensuring that we operate as efficie

218、ntly as possible,while still providing high reliability and high-quality service.We have continued to improve operational performance in 2024,giving us confidence that the changes we have made are being embedded in the business.Colleague engagement is now in the top quartile for our industry(8.1/10,

219、2023:7.7/10),underpinned by a continued strong focus on safety,as well as our redefined Purpose.Our colleagues are helping to deliver strong operational metrics and better customer experience,with customer satisfaction scores improving across our businesses.In British Gas Energy we improved our Trus

220、tpilot score to 4.2 and were awarded Best Overall Improvement by Uswitch.Improved operational performance is feeding into better customer retention and our focus is increasingly moving to creating more innovative offerings to attract new customers.We have added a new Chief Customer Office with scope

221、 across all our retail brands to create a more joinedup and cohesive approach for customers,better connecting our talent andcapabilities topower a step-change improvement in our commercial growth and in the end-to-end customer experience.Alongside PeakSave,we have increased our time-based tariffs wi

222、th propositions such as British Gas Electric Vehicle and the Bord Gis Mighty Weekender Smart Plan.We are continuing to build the home energy ecosystem of the future,powered by our Hive Honeycomb technology platform.We are also building optimisation optionality in our trading agreements,creating new

223、offerings and structures that manage risk and create value.Our balance sheet strength,investment gradecredit rating and strong operational capabilities provide the base of our green-focused investment programme.We continue to make progress on this investment programme,investing across customer techn

224、ology and flexible and renewable power assets,although the investment environment has proved more challenging recently and the pace of deployment is slower than we had hoped.We will remain disciplined with our investments,focused on delivering attractive returns.We have a significant opportunity set

225、 under consideration and will only progress the most attractive projects through our rigorous investment review process.We are already demonstrating our ability to scale up investment over time.Strategic Report Governance Financial Statements Other InformationOperationalexcellenceContinuously improv

226、ing to increase our efficiency,reduce costs and enhance customer satisfaction 4.2British Gas Trustpilot rating(2023:4.0)Improving customer experienceCustomers are at the heart of our business and providing a simple,brilliant customer experience is a key focus forus.Customer experience has been impro

227、ving across our retail businesses with increases in our speed to answer rates,reductions in complaints and NPS improvements in both UK residential energy supply and services.As technology continues to develop,we continue to modernise our systems to support a better customer experience.24%Reduction i

228、n UK residential energy supplycomplaints over the past yearMigration to our new customer platform is nearly complete for residential customers,enabling more flexible and innovative propositions and better customer service.We are committed tocontinuallyimproving the experience of our customers.Key ma

229、rket trends A more flexible systemTechnological transformationCentrica plc Annual Report and Accounts 20242110%Of Irelands electricity supplied fromWhitegate power stationWhitegate power stationWhitegate power station in Cork is vital to Irelands energy security,supplying 10%of the countrys electric

230、ity through its 445MW capacity.As one of Irelands most efficient Combined Cycle Gas Turbines(CCGT),it plays a key role insupporting the nations energy transition,while its capability to operate on natural gas and backup diesel,ensures a resilient energy supply.Whitegate underpins Bord Gis Energys in

231、tegrated business model,and the experienced team managing the asset extract maximum value with 96%reliability.Bord Gis Energy successfully secured a five-year Intermediate Length Contract in the recent Single Electricity Market capacity auction,ensuring Whitegate is operational until 2033.Key market

232、 trendsRough gas storage Our Rough gas storage facility plays a key role in supporting the UKs energy security by providing more than 50%ofthe UKs gas storage.Rough helps the UK both manage higher heating demand during the current cold weather and keep prices down,operating at 95%availability during

233、 2024.We believe Rough could play a valuable role in a decarbonised energy system and we are prepared to invest 2 billion in re-developing the site as Europes largest hydrogen storage facility,subject to agreeing a new regulatory model with the UK Government.Key market trendsA more flexible systemTh

234、e drive to net zeroAffordability and living costsA more flexible systemAffordability and living costs95%Availability at Rough during 2024Growing LNG portfolioThis year we executed an agreement with Coterra Energy to purchase natural gas for 10 years,This deal will reduce the market risk in our lique

235、fied natural gas(LNG)portfolio by buying gas on the same price indices under which the LNG is sold.Gas remains an essential transition fuel and through deals like this we provide affordable,reliable energy and support global energy security.The deal follows similar agreements over recent years,demon

236、strating Centrica Energys innovative partnership approach,one of the key pillars of our successful and growing LNG business.Key market trendsService Promise launchThis year we launched our Service Promise campaign,providing a same-day visit from our boiler service engineers for customers that call u

237、s before 11 am.This service is available to all UK households,either through protection cover or one-off repair,demonstrating our commitment to provide fast,reliable and affordable service to all our customers.This unique offering is unmatched in the market,driven by our expansive field engineer net

238、work,and is resonating strongly with customers,leading to positive protection contract sales(+24%)and contract customer retention(+4%).Key market trendsStrategic Report Governance Financial Statements Other InformationCommercialfocusInnovating to deliver compelling customer propositions and building

239、 optimisation optionality 252LNG cargoes traded globally in 2024(1)86%Protection customer retention in 2024+24%Protection contract sales in 2024 compared to 2023A more flexible systemAffordability and living costsAffordability and living costs(1)This encompasses all physical LNG transactions,includi

240、ng those that were sold,purchased,or involved physical cargo deals that were either delivered or notInnovative tariffsThe flexibility needs of our energy system present opportunities to create value forboth the energy network and for customers through rebalancing energy demand.We are committed to en

241、suring all our stakeholders see the benefits from this transition.Our PeakSave offering is a great example of this,rewarding customers for shifting their electricity usage to times when there is less demand.We also introduced our integrated Hive Solar and Hive Heat Pumps offerings to pass the benefi

242、ts of installing solar energy and heat pumps on to our customers through a dedicated tariff that allows customers to lower theirbills.Centrica plc Annual Report and Accounts 2024231mCustomers in flexible energy propositions,including PeakSave 348kHive thermostat sales in 2024 The drive to net zeroA

243、more flexible systemAffordability and living costsKey market trendsCleanenergy storageIn 2024 we announced a strategic partnership and 70m investment in clean energy storage with Highview Power,providing stability services to the grid andenabling the long-term replacement offossil fuel-based power p

244、lants.Thispartnership will develop the first commercial-scale Liquid Air Energy Storage plant in the UK,boost the UKs energy security and accelerate thetransition to net zero.In addition,we continue to build our portfolio of battery storage assets,committing 79m to developments intheUK,Belgium and S

245、weden in 2024.With our internal optimisation capability,battery storage assets can be adapted in real-time,delivering energy storage that maximises the utilisation of green electricity available to the grid,whilst securing stable return on investment.Strategic Report Governance Financial Statements

246、Other InformationInvestingfor valueInvesting to make Centrica a more predictablebusiness with strong returns across the integrated pillars of our businessWe aim to deploy 600-800m per year to 2028,focusing on assets that generate attractive returns,complement our existing capabilities,provide balanc

247、e to the portfolio,and align to the needs of the energy transition.Attractive returnsWe are focused on delivering attractive returns of 7-10%+on average.In particular,we focus on assets that benefit from our integrated business model and create value across ourbusinesses.Stable cash flowsWe prioriti

248、se investments that have a regulated or contracted revenue structure and are thus less exposed to market fluctuations.These assets provide stable cash flows,keep theportfolio in balance,and help tosupport a strong credit rating.Green focusWe target over 50%of our capital expenditure to go into green

249、 EU taxonomy eligible projects,up from only 5%in 2019.In 2024 we reached over 30%green investment.This focus helps us reduce our carbon emission footprint and supports our People&Planet Plan targets to achieve net zero for our business by 2040,and to help our customers reach net zero by 2050.Our dis

250、ciplined approach to capital investmentThe drive to net zeroA more flexible system 149mInvestment in clean energy storage committed during 2024Key market trendsKey market trendsAccelerating our MAPWe launched our in-house Meter Asset Provider(MAP)business last year and wecontinue to grow this busine

251、ss,with 447k Centrica-owned meters under management at the end of 2024.The MAP business generates a low-risk contracted return for the Group and supports commercial innovation through tariff flexibility and data insights.We have a clear capital deployment pathway given our residential customer base

252、and plan to increase investment in this area up to 200m per year until 2035 with an expected post-tax IRR of9%+.Key market trends Centrica plc Annual Report and Accounts 202425447kSmart meters managed through our in-house MAP business534MWFlexible peaking plant capacity in development to support ene

253、rgy security in IrelandFlexible generation capacityBord Gis Energy secured a 10-year capacity contract to deliver an Open Cycle Gas Turbine(OCGT)with 334MW electrical generation capacity critical strategic infrastructure for Ireland.Thisagile,fast-acting power unit can be brought into service rapidl

254、yand removed again swiftly,complementing intermittent renewable generation.The planned technology has the capability to run on100%biomethane or on a blend of hydrogen,once it becomes available on the gas network.This is further to the investment of around 300m in two,hydrogen-capable,100MW flexible

255、gas peaking plants inAthlone and Dublin,which will commence exporting to the grid laterthis year.A more flexible systemTechnological transformationAffordability and living costsKey market trendsThe drive to net zeroA more flexible systemGroup Chief Financial OfficersreportFinancial overviewThe Group

256、s adjusted EBITDA,including Centricas share of EBITDA from joint ventures and associates was 2.3bn(2023:3.5bn)against a more normalised backdrop of lower prices and reduced volatility.Adjusted operating profitwas 1.6bn(2023:2.8bn)and after reflecting net finance income and taxation on business perfo

257、rmance,Groupadjusted earnings attributable to shareholders were 1.0bn(2023:1.9bn)and Group adjusted EPSwas 19.0p(2023:33.4p).From a statutory perspective,operating profit was 1.7bn(2023:6.5bn).This includes a certain re-measurement gain during the year of 0.3bn(2023:4.4bn)predominantly due to the un

258、wind of 2023 out-of-the-money hedging positions partially offset by the movement in the onerous energy supply and LNG contract provision.Inaddition an exceptional loss of 0.1bn(2023:0.6bn)was recognised driven predominantly bylegacy contract costs associated with business activity that ceased a numb

259、er of years ago and impairment of Nuclear and CBS assets.Statutory profit attributable to shareholders was 1.3bn(2023:3.9bn)and statutory EPS was 25.7p(2023:70.6p).None of the items reported in the middle column of the Income Statement are considered to reflect the underlying performance of the busi

260、ness.The Groups total Free Cash Flow(FCF)reduced to 1.0bn(2023:2.2bn),with the impact of lower operating profit and higher capital expenditure partially offset by lower cash tax payments.The closing net cash balance was 2.9bn(2023:2.7bn).Statutory net cash flow from operating and investing activitie

261、s was 1.6bn(2023:2.9bn).Thiswas higher than the FCF noted above largely because of the exclusions from FCF of the sale and purchase of securities,interest received,defined benefit pension deficit payments and movements in variation margin and collateral,which support our commodity hedging activity a

262、nd Centrica Energy optimisation activity.The Groups net assets increased to 4.8bn(2023:4.2bn)largely driven by the statutory profit the Group generated.This was partially offset by the impact of items reported in equity,including a 480m reduction from the share buyback programme and 219m of dividend

263、s paid to shareholders.Strategic Report Governance Financial Statements Other InformationI am very pleased with the financial performance we delivered in 2024 which wassupported by stronger operational performance across the portfolio.Thishas been instrumental in driving ourearnings and cash generat

264、ion and supports increasing balance sheet resilience,funding our investment programme and growing shareholder returns.Russell OBrien,Group Chief Financial OfficerRelentless focus on value creationMaximise sustainable earningsProgressive dividendInvest for valueReturn surplus capitalMaintain a strong

265、 balance sheetRevenueTotal Group revenue decreased by 25%to 19,913m(2023:26,458m).Total Group revenue included in business performance,which includes revenue arising on contracts in scope of IFRS 9,decreased by 26%to 24,636m(2023:33,374m).Gross segment revenue,which includes revenue generated from t

266、he sale of products and services between segments,decreased by 26%to 26,206m(2023:35,343m).This was driven largely by the impact of lower commodity prices,lower volatility,and lower seasonal gas price spreads.A table reconciling the different revenue measures is included in note 4(b)of theaccounts.A

267、djusted EBITDA,operating profit,earnings and dividendAdjusted EBITDAYear ended 31 December(m)20242023Retail528930British Gas Services&Solutions110101British Gas Energy339808Bord Gis Energy7921Optimisation443963Centrica Business Solutions97141Centrica Energy346822Infrastructure8211,155Nuclear(i)97327

268、Spirit Energy707506Centrica Energy Storage+17322Colleague profit share,consolidation adjustment and other(ii)37Adjusted EBITDA1,7923,085Share of Nuclear associates EBITDA513415Adjusted EBITDA including share of EBITDA from joint ventures and associates2,3053,500(i)Excludes Centricas share of associa

269、te EBITDA of 513m(2023:415m).(ii)Includes colleague profit share of(25)m(2023:(8)m)and a consolidation adjustment of(19)m(2023:nil),relating to the MAP.Adjusted EBITDA including share of EBITDA from joint ventures and associates decreased to 2,305m(2023:3,500m),largely reflecting the movement in adj

270、usted operating profit.Operating profitYear ended 31 December(m)20242023Retail427799British Gas Services&Solutions6747British Gas Energy297751Residential energy supply(i)269726Business energy supply2825Bord Gis Energy631Optimisation380878Centrica Business Solutions73104Centrica Energy 307774Infrastr

271、ucture7891,083Nuclear353536Spirit Energy434235Centrica Energy Storage+2312Colleague profit share and MAP consolidation adjustment(ii)(44)(8)Operating profit from business performance(Adjusted operating profit)1,5522,752Exceptional items and certain re-measurements1513,760Group operating profit(Statu

272、tory operating profit)1,7036,512(i)Includes the Meter Asset Provider(MAP)business.(ii)Colleague profit share of(25)m(2023:(8)m)and a consolidation adjustment of(19)m(2023:nil),relating to the MAP.Adjusted operating profit decreased to 1,552m(2023:2,752m).More detail on specific business unit adjuste

273、d operating profit performance is provided in the Business Review on pages 33 to 37.Statutory operating profit was 1,703m(2023:6,512m),with the difference between the two measures of profit relating to a net gain on exceptional items and certain re-measurements of 151m(2023:3,760m).Centrica plc Annu

274、al Report and Accounts 202427Certain re-measurements included within operating profitCertain re-measurements are the fair value movements on energy contracts entered into to meet the future needs of our customers,or to sell the energy produced from our upstream assets.These contracts are economicall

275、y related to our upstream assets,capacity/off-take contracts or downstream demand,which are typically not fair valued,and are therefore separately identified in the current period and reflected in business performance in future periods when the underlying transaction or asset impacts the Group Incom

276、e Statement.If the future costs to fulfil customer supply contracts,including the mark-to-market reversal of any energy hedging contracts entered into to meet this demand,exceed the charges recoverable from customers,an onerous contract provision will be recognised.Similarly,if the future revenues f

277、rom LNG procurement contracts,including the mark-to-market reversals of hedging contracts entered into related to these purchases,do not exceed the purchase cost,an onerous contract provision will be recognised.Because the associated,unrealised hedging gains or losses will be recognised in certain r

278、e-measurements,the movements in these onerous provisions will also be recognised in certain re-measurements.The Group operating profit in the statutory results includes a net pre-tax profit of 279m(2023:4,405m)relating to re-measurements,comprised of:A net gain of 421m on the re-measurement of deriv

279、ative energy contracts.This predominantly reflects the unwind of 2023 out-of-the-money energy supply contract hedge purchases,partially offset by an unwind of our infrastructure businesses and Centrica Energy in-the-money positions from 2023.The net positive impact of these two factors was 377m.In a

280、ddition,we saw a net gain of 44m from our wider portfolio,driven by net changes in commodity prices.ell.A net loss of 142m from the movement in onerous contract provisions.Included within this is the onerous energy supply contract provision,which is based on the future costs to fulfil customer contr

281、acts on a current market basis.This provision had fully unwound by 31 December 2023 and remains at nil on 31 December 2024.However,the acquisition of AvantiGas ON Limited in 2022,included an opening balance sheet onerous contract provision,which is unwound to the business performance column of the G

282、roup Income Statement on a pre-determined acquisition date basis,to ensure this column reflects the true profit/loss relative to the acquisition date values.At each reporting date,the closing balance sheet value of the onerous contract provision is then updated to reflect actual market prices,with t

283、he required remaining movement in the provision posted to the certain re-measurements column.Because commodity prices generally fell after the 2022 acquisition,this meant that the balance sheet onerous contract provision fell more quickly than originally expected.This led to a 69m onerous contract p

284、rovision movement income in certain re-measurements in 2023.Accordingly,there is a 60m cost in 2024 in certain re-measurements,as this position has now mostly unwound.Also included is an 82m cost(2023:nil)relating to an onerous LNG contract,however the LNG portfolio is forecast to remain profitable

285、when taking into account future hedges and cargoes.Further details can be found in note 7(a).Exceptional items included within operating profitAn exceptional pre-tax operating cost of 128m was recognised within the statutory Group operating profit(2023:645m)made up of:53m(2023:nil)legacy contract co

286、sts associated with business activity that ceased a number of years ago,predominantly related to construction services,have led to an increase in provisions during the period.A 48m(2023:549m)impairment of the Nuclear investment as a result of a reduction in power prices,partially offset by the life

287、extensions at four stations.A 27m(2023:14m)impairment in Centrica Business Solutions,predominantly related to battery storage and solar assets,as a result of lower forecast power price capture,together with an increase in discount rate and an increase in operating and capital expenditure forecasts.2

288、023 also included an 82m impairment of the Rough gas storage asset as a result of a reduction in both forecast gas prices and forecast summer/winter gas price spreads.Further details on exceptional items,including on impairment accounting policy,process and sensitivities,can be found in notes 7(b)an

289、d 7(c).Group earnings and dividend20242023Year ended 31 December(m)NotesBusiness performanceExceptional items and certain re-measurementsResults for the yearBusiness performanceExceptional items and certain re-measurementsResults for the yearGroup operating profit4(c)1,5521511,7032,7523,7606,512Net

290、finance income/(cost)844(68)(24)(39)(39)Taxation9(553)239(314)(838)(1,595)(2,433)Profit from operations1,0433221,3651,8752,1654,040Less:(Profit)/loss attributable to non-controlling interests(59)26(33)(16)(95)(111)Adjusted earnings attributable to shareholders9843481,3321,8592,0703,929Basic earnings

291、 per share10 19.0p 6.7p 25.7p 33.4p 37.2p 70.6p Full year dividend per share11 4.5p 4.0p Strategic Report Governance Financial Statements Other InformationNet finance income/costNet finance income on business performance was 44m(2023:39m net finance cost),largely due to an increase in interest incom

292、e on cash balances,reflecting higher UK interest rates,the higher cash balances we held during the year,and a reduction in financing costs on bonds and bank loans.In addition,68m of exceptional financing costs have been recognised in relation to debt repurchase and refinancing exercises.370m of debt

293、 instruments have been repurchased in advance of their maturity date.Due to the premium paid above existing carrying value and transaction fees,a one-off Income Statement cost of 50m has been incurred.Additionally,refinancing of the 2075 hybrid bond,designated in a fair value hedge relationship,with

294、 a carrying value of 435m and repayment value of 453m(including fees),has resulted in a one-off Income Statement financing cost of 18m.Taxation and adjusted effective tax rateBusiness performance taxation on profit decreased to 553m(2023:838m).This excludes tax on joint ventures and associates.After

295、 taking account of tax on joint ventures and associates,the adjusted tax charge was 671m(2023:912m).The resultant adjusted effective tax rate for the Group was 39%(2023:33%),with a higher proportion of profits coming from highly taxed Infrastructure activities.The adjusted effective tax rate calcula

296、tion is shown below:Year ended 31 December(m)20242023Adjusted operating profit before impacts of taxation1,5522,752Add:JV/associate taxation included in adjusted operating profit11874Net finance income/(cost)44(39)Adjusted profit before taxation1,7142,787Taxation on adjusted operating profit(553)(83

297、8)Share of JV/associate taxation(118)(74)Adjusted tax charge(671)(912)Adjusted effective tax rate 39%33%A charge totalling 166m(2023:326m)related to the Electricity Generator Levy is included in the Groups cost of sales and in our share of the operating profits of joint venture and associates.The Le

298、vy is not an income tax and is not deductible for corporation tax purposes.If this had been treated as a tax,the Groups adjusted effective tax rate would have been 45%(2023:40%).Total certain re-measurements and exceptional items generated a taxation credit of 239m(2023:1,595m charge),which was larg

299、er than the total certain re-measurements and exceptional items due to the mix of profits from downstream and losses from the higher tax business,Spirit,together with an exceptional deferred tax credit in Spirit.When included with taxation on business performance generated a total taxation charge of

300、 314m(2023:2,433m).See notes 2(b),3(b),7(a),7(b)and 9 for more details.Group earnings Profit for the year from business performance after taxation was 1,043m(2023:1,875m).After adjusting for non-controlling interests relating to Spirit Energy,adjusted earnings were 984m(2023:1,859m).Adjusted basic E

301、PS was 19.0p(2023:33.4p),which also includes the impact of a lower weighted average number of shares than in 2023,reflecting the ongoing share buyback programme.After including exceptional items and certain re-measurements,including those attributable to non-controlling interests,the statutory profi

302、t attributable to shareholders for the period was 1,332m(2023:3,929m).The Group reported a statutory basic EPS of 25.7p(2023:70.6p).DividendIn addition to the interim dividend of 1.5p per share,the proposed final dividend is 3.0p per share,giving a total full year dividend of 4.5p per share(2023:4.0

303、p per share).The cash paid to Centrica shareholders in dividends in 2024 was 219m,made up of the 2.67p per share final 2023 dividend and the 1.5p per share interim 2024 dividend(2023:186m).Group cash flow,net cash and balance sheetGroup cash flowFree cash flow(FCF)is the Groups primary measure of ca

304、sh flow as management believe it provides relevant information to show the cash generation of the business after taking account of the need to maintain the Groups capital asset base.FCF was 989m(2023:2,207m).See explanatory note 4(f)for further details and a reconciliation between statutory cash flo

305、w from operating and investing activities and free cash flow.Year ended 31 December(m)20242023Adjusted EBITDA(i)1,7923,085Dividends received355220Adjusted EBITDA and dividends received2,1473,305Tax(636)(803)Working capital124244Decommissioning spend(80)(173)Capital expenditure(ii)(564)(415)Disposals

306、455Exceptional cash flows(6)(6)Free cash flow9892,207Net interest34(19)Pension deficit payments(176)(180)Movements in margin cash(iii)131585Share buyback programme(499)(613)Dividends Centrica shareholders(219)(186)Dividends Spirit Energy minority shareholder(17)Other cash flows affecting net debt(iv

307、)(76)6Adjusted cash flow affecting net cash1841,783Opening net cash(as at 1 January)2,7441,199Adjusted cash flow movements1841,783Non-cash movements(v)(70)(238)Closing adjusted net cash2,8582,744(i)Excludes Centricas share of associate EBITDA of 513m(2023:415m).(ii)Capital expenditure(including smal

308、l acquisitions).See page 30 for more detail.(iii)As at 31 December 2024,margin cash posted was 105m(2023:240m).(iv)2024 other cash flows affecting net cash includes(68)m relating to exceptional financing costs in relation to debt repurchase and refinancing activities.(v)2024 non-cash movements inclu

309、des(55)m relating to new leases and the re-measurements of existing leases(2023:(158)m).Centrica plc Annual Report and Accounts 202429The net inflow of working capital was 124m(2023:244m).Within this,there was a 342m working capital inflow in Centrica Energy driven by profit on prior year derivative

310、 cash positions settled during 2024,a 148m working capital inflow in Centrica Energy Storage+relating to higher withdrawals and a lower injection price,partially offset by a 456m outflow in British Gas Energy related to the impact of falling commodity prices.The collateral and margin cash inflow was

311、 131m(2023:585m).Net investmentThe net investment outflow for the period was 560m(2023:360m).Within this,capital expenditure(including small acquisitions)of 564m(2023:415m)was predominantly driven by investment in flexible and renewable power generation assets across Bord Gis Energy and Centrica Bus

312、iness Solutions,and the acquisition of ENSEK and investment in the MAP business in British Gas Energy.The table below provides a summary of total Group net investment by business unit,which management uses to provide a measure of the Groups capital expenditure from a cash perspective,and a reconcili

313、ation of this measure to capital expenditure disclosed in note 4(e).Year ended 31 December(m)20242023British Gas Services&Solutions(22)(50)British Gas Energy(187)Bord Gis Energy(103)(72)Centrica Business Solutions(160)(114)Centrica Energy(40)(47)NuclearSpirit Energy(31)(75)Centrica Energy Storage+(1

314、1)(26)Other(i)(10)(31)Capital expenditure(including small acquisitions)(564)(415)Net disposals455Total Group net investment(560)(360)Add back:Capitalised borrowing costs(11)(2)Inception of new leases and movements in payables and prepayments related to capital expenditure(63)(85)Purchases of emissio

315、ns allowances and renewable obligation certificates(856)(780)Deduct:Net disposals(4)(55)Purchase of businesses,net of cash acquired9234Investment in joint ventures and associates9Net purchase of other investments(ii)5637Capital expenditure(per note 4(e)(1,346)(1,202)(i)This includes a consolidation

316、adjustment of 19m(2023:nil)relating to MAP.(ii)Includes 27m Centrica Energy investments and 25m Centrica Business Solutions convertible loan note investment in Highview Enterprises Ltd group.Group adjusted net cashAccordingly,the Groups adjusted net cash position as at 31 December 2024 was 2,858m,co

317、mpared to 2,744m on 31 December 2023.The breakdown of net cash is shown below:As at 31 December(m)20242023Current and non-current borrowings,leases and interest accruals(2,867)(3,289)Derivatives(107)(119)Gross debt(2,974)(3,408)Cash and cash equivalents,net of bank overdrafts5,6935,629Current and no

318、n-current securities139521Sub-lease assets2Adjusted net cash2,8582,744Further details on the Groups sources of finance and net cash are included in note 25.Statutory cash flowYear ended 31 December(m)20242023Statutory cash flow from operating activities1,1492,752Statutory cash flow from investing ac

319、tivities493115Statutory cash flow from financing activities(1,548)(1,414)Net increase in cash and cash equivalents941,453Net cash inflow from operating activities decreased to 1,149m(2023:2,752m),with the impact of lower adjusted EBITDA.Net cash inflow from investing activities was 493m(2023:115m).W

320、ithin this,interest received increased to 317m(2023:267m)reflecting the higher interest rate environment,while dividends from our Nuclear associate increased to 355m(2023:220m).Capital expenditure(including small acquisitions)increased to 564m(2023:415m)as we build momentum in our green-focused grow

321、th and investment strategy.There was a 400m settlement of securities,relating to the settlement of previous loans made to the pension schemes.Net cash outflow from financing activities was 1,548m(2023:1,414m).Within this there was a net outflow on borrowings of 539m(2023:318m)driven by the repurchas

322、e of debt instruments,and the refinancing of our hybrid bond.Cash distributions to equity shareholders were 499m(2023:613m)through the Groups share buyback programme,and 219m(2023:186m)related to ordinary dividend payments.There were no distributions to Spirit Energys minority partner in the year(20

323、23:17m).The above resulted in a 94m increase in cash and cash equivalents over the year.Gross debt reduced by 434m,reflecting 370m of debt instruments having been repurchased in advance of their maturity date during the period.When also including the impact of foreign exchange adjustments on cash,th

324、e Groups adjusted net cash position at 31 December 2024 was 2,858m,compared to 2,744m on 31 December 2023.Further details on the Groups sources of finance and adjusted net cash are included in note 25.Strategic Report Governance Financial Statements Other InformationPension deficitThe Groups IAS 19

325、net pension deficit was 21m at the year-end,compared with a 117m deficit at 31 December 2023,with the impact of pension deficit contributions during the year partly offset by a decrease in high-quality corporate bond yields used to discount the pension liabilities,a lower return on scheme assets and

326、 an actuarial adjustment due to inflation experience.The technical provisions deficit is based on more conservative assumptions and is used to determine the agreed level of cash contributions into the schemes.In February 2025,we reached agreement with the pension trustees on a March 2024 technical p

327、rovisions deficit of 504m,with annual deficit contributions of around 140m a year to 2027.On a roll-forward basis using the same methodology,consequent assumptions and contributions paid,the technical provision deficit would be around 450m at 31 December 2024.Further details on post-retirement benef

328、its are included innote22.Decommissioning liabilitiesThe 1,459m(2023:1,527m)decommissioning provision is predominantly the estimated pre-tax net present cost of decommissioning gas production facilities at the end of their useful lives,based on 2P reserves,price levels,and technology at the balance

329、sheet date.As at 31 December 2024 the provision balance is 1,139m for Spirit Energy,302m in relation to the Rough field and 18m in the remainder of the business.The provisions are held gross of tax,with a corresponding deferred tax asset of 605m(2023:617m).Further details on decommissioning provisio

330、ns are included in notes 3 and 21.Balance sheetNet assets increased to 4,812m(2023:4,233m),predominantly driven by the statutory profit the Group generated.This was partially offset by the impact of items reported in equity,including a 480m reduction from the share buyback programme and 219m of divi

331、dends paid to shareholders.Acquisitions,disposals and other investmentsOn 11 June 2024 the Group invested 25m in convertible loan notes and ordinary shares in Highview Enterprises Limited.The Group also agreed to provide financing to CryoBattery One Limited,a subsidiary of Highview Enterprises Limit

332、ed,in the form of a 45m senior debt facility of which 3m has been drawn down at 31 December 2024.This entity is developing a new cryogenic energy storage plant.When built,this will consist of a long duration storage process using patented Liquid Air Energy Storage(LAES)technology.On 29 July 2024 the

333、 Group acquired ENSEK and its innovative customer management platform,Ignition for 91m.The acquisition completed on 20 September 2024.The acquisition will deliver strong returns aligned with the Groups capital allocation framework and investment thresholds and will enhance the Groups ability to offer innovative propositions to its customers as the energy system evolves.Further details on assets pu