Centrica Pushes for Government Support to Expand Rough Gas Storage Facility

The energy company claims the £2 billion project could stabilize gas prices and save households money, but seeks a cap-and-floor mechanism to secure returns.

Centrica is in high-level talks with the UK government about a £2 billion redevelopment of its Rough gas storage facility to increase capacity and stabilize gas prices.
The company argues that an expanded Rough facility could have saved UK households £200 each during the energy crisis by reducing price volatility.
Centrica seeks a 'cap-and-floor' agreement to guarantee minimum returns for the project, though critics argue it could expose taxpayers to financial risks.
Currently operating at reduced capacity, Rough accounts for about half of the UK’s gas storage but offers significantly less storage than European counterparts like Germany and France.
Centrica's CEO warns that the facility is loss-making and unsustainable without investment, projecting losses between £50 million and £100 million for 2025.