Centrica corrals Texan energy retailer

23rd Sep 2011 07:47

Centrica, which trades as British Gas and Scottish Gas in Britain, is expanding its retail energy business in the deep south of the USA, with the acquisition of a Texas firm.Centrica North American subsidiary, Direct Energy, is paying $270m (£175m) for energy retailer First Choice Power.First Choice Power has more than 220,000 residential and commercial electricity customer accounts in Texas. Centrica said the acquisition supports Direct Energy's strategy to grow and extend its North American downstream retail business, and strengthens its position as the third largest energy retailer in Texas, taking its number of electricity customer accounts in the state to more than 830,000. "First Choice Power is an established brand with a loyal customer base. Its addition to the Direct Energy family will significantly enlarge our business in one of the key US deregulated residential markets, providing a valuable platform for future growth," claimed Direct Energy President and Chief Executive Officer, Chris Weston.--jh