Centrica agrees first coal-indexed power purchase agreement

UK gas company Centrica has agreed its first coal-indexed power purchase agreement, which will see International Power supplying 250 MW at peak times to Centrica unit British Gas.

The contract price will be directly indexed with international coal prices and will enable Centrica to deliver greater diversity to its generation portfolio.

The three-year deal will begin in October and will deliver around 2.34 TWh over its term.