CNA Centrica Plc

By Alex MacDonald

LONDON-- U.K. energy utility, Centrica PLC (CNA.LN) said Friday that its Langage and South Humber gas fired power stations have been awarded one-year capacity agreements starting in October 2018.

All capacity agreements are subject to final approval from the U.K.'s Department of Energy & Climate Change, which is expected no later than Jan 5, with a view to issuing a capacity agreement notice no later than January 30.

Companies bid to win capacity agreements from the U.K. grid operator National Grid PLC (NGG). The capacity agreements provide a steady payment for maintaining power generation capacity in return for a commitment to deliver electricity when needed or face a penalty linked to the amount of electricity that the utility failed to deliver.

Centrica owns and operates six gas-fired power stations in England and Wales, with a combined output of 3.7 gigawatts.

-Write to Alex MacDonald at alex.macdonald@wsj.com

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