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Centrica unveils unusual pensions funding deal

The owner of British Gas has arranged to use intra-company loans to help finance its pension fund

Centrica, the energy group behind British Gas, has set up an unusual accounting structure to help finance its £5bn pension schemes, diverting interest-payments from various intra-group loans to give the schemes a secure income.

In its annual results yesterday, the gas and energy supplier said it had set up a special subsidiary company, a Scottish Limited Partnership, and transferred "certain loans to UK group companies" into it.

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