Direct Energy Acquires Gateway Energy Services

Houston, TX (5/2/2011) - Leading North American energy retailer Direct Energy has finalized its acquisition of residential and small commercial energy marketer Gateway Energy Services Corporation for $91 million in cash (including $13 million of tax assets) plus working capital, expanding its presence in New York, New Jersey, and Pennsylvania.

"We welcome Gateway's employees and customers to Direct Energy, and look forward to demonstrating our commitment to excellent service and choice for homes and businesses that select us as their energy company," said Steven Murray, President, Direct Energy Residential. "This acquisition allows us to deepen our penetration in key growth markets in the US Northeast, and brings additional energy experts into our business."

Gateway has more than 280,000 gas and electricity customer accounts, located mainly in New York State, New Jersey and Pennsylvania and builds on Direct Energy's strong organic expansion in the US Northeast. Over the last year, Direct Energy has begun serving residential customers in nine new electricity markets and four new natural gas markets in the states of Maryland, Pennsylvania, Ohio and Illinois - which include the urban centers of Pittsburgh, Philadelphia, Baltimore, Cincinnati and Chicago.

About Direct Energy

Direct Energy is one of North America's largest energy and energy-related services providers with over 6 million residential and commercial customer relationships. Direct Energy provides customers with choice and support in managing their energy costs through a portfolio of innovative products and services. A subsidiary of Centrica plc (LSE: CNA), one of the world's leading integrated energy companies, Direct Energy operates in 46 states plus DC and 10 provinces in Canada.

For further information, please contact:

Claire Monaghan
Direct Energy
Claire.Monaghan@directenergy.com