LONDON, March 13, 2026, 16:21 GMT
By 15:47 London time, Centrica was trading around 207.86 pence—up roughly 0.5% and sticking close to its 52-week high. Shares earlier hit 210 pence, extending Thursday’s sharp 3.09% gain that saw the stock close at 206.8 pence and break above its prior one-year top.
This shift has real weight right now. Britain’s energy crunch is deepening, not easing. Reuters flagged a more than 60% jump in wholesale gas prices over the last two weeks, while Cornwall Insight expects Ofgem’s July price cap — the ceiling for what suppliers can bill households on default deals — to rise to 1,827 pounds, up from 1,641 pounds in April. Gas-fired plants still deliver about 30% of UK electricity, and over 70% of homes rely on gas.
The sector’s gained across the board. While the FTSE 100 slipped 0.3% early Friday in London, the energy index moved up 1.3%, boosted by BP and Shell. This follows a 2.6% leap for the FTSE 350 energy index on Thursday, hitting a fresh record high.
Citi’s latest upgrade has given Centrica a boost. This week, the bank shifted its rating to buy and bumped the price target to 218 pence, up from 200 pence. Analyst Jenny Ping pointed to a changing “political backdrop,” which, she said, now makes state backing for Centrica’s Rough gas storage site “more probable.” Citi projected that an initial 100 million pounds in support could be enough to keep Rough running, with the possibility of another 1 billion pounds if the site’s lifespan needs stretching. Investing
The bounce marks a notable shift since Feb. 19. On that day, Centrica—the parent of British Gas—hit the brakes on its share buyback right after it posted a 39% drop in 2025 core profit and trimmed its 2026 Optimisation outlook. That unit handles its gas and power trading. JPMorgan flagged both the weaker guidance and 600 million pounds in transformation costs as potential pressure on near-term estimates. Still, Chief Executive Chris O’Shea pointed to Sizewell C, Grain LNG, and the company’s meter assets as key to building “more stable and predictable earnings”. Reuters
Retail energy remains packed with players. On Thursday, Reuters said Tesla secured the green light to sell electricity in Britain, stepping into the arena with British Gas, Octopus Energy, and EDF. The move comes as households anticipate yet another bump in bills starting July.
The bullish outlook hinges on steady prices and accommodating policy. Citi’s downside scenario? Shares drop to 180 pence if UK power and gas curves slide 20% and margins at the household-supply unit narrow. The bank also pointed to softer commodity prices, negative calls on Rough, and questionable acquisition moves as key risks.
The next milestones are just ahead. Ofgem plans to announce the updated price cap by May 27. Centrica is still waiting on a decision from the government over gas storage. Jonathan Stubbs at Berenberg noted that fallout should be contained if the Strait of Hormuz opens back up by end-March, but warned that “persistently high energy prices pose the real risk” if it stays shut. Reuters
