Centrica, an energy and services company, reduced the technical provisions deficit of its UK defined benefit (DB) pension scheme by 47 per cent, from £994m in March 2021 to £504m in March 2024, its triennial review has revealed.

On a roll-forward basis using the same methodology, consequent assumptions and contributions paid, the technical provisions deficit would be around £450m as at 31 December 2024, up from £700m as at 30 June 2024.

As part of the triennial review, Centrica also agreed with the pension scheme trustees that annual deficit payments would be reduced from £175m to approximately £140m per annum until 2027.

Commenting on the agreement, Centrica Group chief financial officer, Russell O'Brien, said he was “delighted” to have concluded the triennial pensions valuation well in advance of the statutory 30 June 2025 deadline.

“This agreement gives clarity on the company contributions to the DB pension schemes over the coming years and is a testament to the strength of the collaborative relationship we have with the pension scheme trustees,” he added.

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