Centrica was formed in February 1997 following a demerger from British Gas plc. The new company comprised the gas supply, services and retail businesses of British Gas, together with the gas production business of the North and South Morecambe gas fields.

Since the privatization of the UK national gas business in the 1980s (into UK retail [Centrica]; Gas transportation [Transco, subsequently acquired by National Grid] and International oil and gas production [BG Group] Centrica has since grown into a Vertically Integrated gas and power business with operations in the UK and North America. Centrica generated gas and power from its own resources and sells energy to end customers. Centrica no longer has any direct involvement in the transportation of natural gas, or the construction of distribution networks