Centrica PLC — Environmental & Social Information 2024

Jun 28, 2024

CENTRICA PLC

REPORT ON PAYMENTS TO GOVERNMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

Centrica plc Millstream Maidenhead Road Windsor Berkshire SL4 5GD

Registered in England & Wales No 3033654

Introduction

This Report contains payments to Governments made by Centrica plc and its subsidiaries for the year ended 31 December 2023 as required under the UK's Report on Payments to Governments Regulations 2014 (as amended in December 2015). These UK Regulations enact domestic rules in line with Directive 2013/34/EU (the EU Accounting Directive (2013) and apply to large UK incorporated companies like Centrica Plc that are involved in the exploration, prospection, discovery, development and extraction of oil, natural gas deposits or other materials. This Report is also intended to satisfy the requirements of the Disclosure and Transparency Rules of the Financial Conduct Authority in the United Kingdom.

Basis of preparation

Legislation

This Report is prepared in accordance with The Reports on Payments to Governments Regulations 2014 as enacted in the UK in December 2014 and as amended in December 2015.

Reporting entities

This Report contains payments to Governments made by Centrica plc and its subsidiaries involved in the "Activities" below.

Activities

Payments made by Centrica Plc or any of its subsidiaries to Governments arising from activities involving the exploration, prospection, discovery, development and extraction of oil and natural gas deposits or other materials (extractive activities) are disclosed in this Report.

Government

Government includes any national, regional or local authority of a country, and includes a department, agency or entity that is a subsidiary of a Government, which includes a national oil company.

Project

Payments are reported at project level except those which are not attributable to a specific project, are reported at entity level. 'Project' means the operational activities which are governed by a single contract, licence, lease, concession or similar legal agreement, and form the basis for payment liabilities with a Government. If agreements of the kind referred to in the definition of 'project' are substantially interconnected, those agreements are treated for the purposes of these regulations as a single project.

Payment

The information is reported under the following payment types. All payments are denoted as positive numbers and receipts/refunds are denoted in brackets.

Production entitlements

Subject to the terms of the contractual arrangements, payments are calculated on the basis of the Government's share of production (whether a Government department, agency or state-owned enterprise) under production sharing agreements. There were no reportable production entitlement payments made to a Government during the year ended 31 December 2023.

Taxes

Tax payments made on the income, production or profits of companies, but excluding taxes levied on consumption (such as VAT, personal income taxes or sales taxes).

Royalties

These are payments for the rights to extract oil and gas resources, typically at set percentage of revenue less any deductions that may be taken. Any Royalty payments made in kind are also included. There were no reportable production entitlement payments made to a Government during the year ended 31 December 2023.

Dividends

These are dividend payments other than dividends paid to a Government as an ordinary shareholder of an entity unless paid in lieu of production entitlements or royalties. There were no reportable dividend payments made to a Government during the year ended 31 December 2023.

Bonuses

These are payments for Bonuses. These are usually paid upon signing an agreement or a contract, or when a commercial discovery is declared, or production has commenced or reached a milestone. There were no reportable Bonus payments made to a Government during the year ended 31 December 2023.

Fees

These are licence fees, rental fees, entry fees and other considerations for licences or concessions. Administrative fees, payments for permits and payments for services provided by a government have been excluded.

Infrastructure improvements

These are payments which relate to the construction of infrastructure (road, bridge or rail) not substantially dedicated for the use of extractive activities. There were no reportable Infrastructure Improvement payments made to a Government during the year ended 31 December 2023.

Operatorship

Where Centrica Plc or any of its subsidiaries make a payment directly to a Government arising from a project, regardless of whether Centrica Plc is the operator, the full amount paid is disclosed irrespective of whether costs are subsequently recovered through cost sharing arrangements.

Cash and in-kind payments

Payments are reported on a cash basis. In-kind payments are converted to an equivalent cash value based on the most appropriate and relevant valuation method for each payment, which can be at cost or market value or such value as stated in the contract. In-kind payments are reported in both volumes and the equivalent cash value.

Materiality Level

Payments, whether made as a single payment or as a series of related payments to a Government, have been excluded from the report if they are cumulatively below £86,000 for the reporting period.

Exchange Rate

Payments made in currencies other than British Pound are translated for this Report based on the foreign exchange rate as of the Centrica Plc year end 31 December 2023.

Summary Report by Country (GBP 000's) Payments/(Refunds)

Country	Production entitlements Taxes		Royalties Dividends	Bonuses Fees	Infrastructure improvements TOTAL
United Kingdom	218,861			5,619	224,480
Netherlands		-			-
Norway	2,798				2,798
Total	221,659			5,619	227,278

United Kingdom (GBP 000's) Payments/(Refunds)

Governments	Production entitlements	Taxes	Royalties	Dividends	Bonuses	Fees	Infrastructure improvements	TOTAL
Oil and Gas Authority						3,470		3,470
Crown Estate						2,149		2,149
Her Majesty's Revenue and Customs		218,861						218,861
Total		218,861				5,619		224,480

Projects	Production entitlements	Taxes	Royalties	Dividends	Bonuses	Fees	Infrastructure improvements	TOTAL
Eris						383		383
Grove						391		391
Kew						374		374
North Morecambe						131		131
Rhyl
Seven Seas						313		313
Sycamore (Part of Trees) Victor		(2,614)				391 131		391 131 (2,614)
York
Stamford - Greater Markham Area Ceres						372 131 132		372 131 132
Rough
49/4a (Chiswick Area)		82,844				2,421		85,265
Corporate		138,631				449		449 138,631
Total		218,861				5,619		224,480

Norway (GBP 000's) Payments/(Refunds)

Governments	Production entitlements	Taxes	Royalties	Dividends	Bonuses	Fees	Infrastructure improvements	TOTAL
Skattedirektoratet		2,798						2,798
Total		2,798						2,798

	Production						Infrastructure
Projects	entitlements	Taxes	Royalties	Dividends	Bonuses	Fees	improvements	TOTAL
Corporate		2,798						2,798
Total		2,798						2,798

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Netherlands (GBP 000's) Payments/(Refunds)

Governments	Production entitlements	Taxes	Royalties	Dividends	Bonuses	Fees	Infrastructure improvements	TOTAL
Belastingdienst		-						-
Total		-						-
Projects	Production entitlements	Taxes	Royalties	Dividends	Bonuses	Fees	Infrastructure improvements	TOTAL
Corporate		-						-

Total - -