Centrica searches for Sid

Letters have now gone out

Energy company Centrica has begun a search for 22,000 people who bought shares in British Gas in the 80s, but have since lost contact with the company.

When British Gas privatised in 1986, its advertising campaign which looked for potential investors famously searched for "Sid".

Now it seems the search has begun again. But when Centrica finds the missing shareholders, it will charge them to reactivate their accounts.

It has also identified another 600,000 people who own 300 shares or less and wants to persuade them to either buy more, or to sell the ones they have.

These are people who have lost their shares, possibly lost their certificates, and we are reuniting them with their assets Derek Woodward, Centrica

BBC Radio 4's Money Box spoke to Derek Woodward, the man in charge of the project at Centrica.

He explained that the vast majority of the missing shareholders only hold a small number of shares. Many of them will simply have moved to a new address.

Mr Woodward told the programme: "We are writing to them at the address we have on our register, and we are employing a number of methods to find them.

"We are offering them the facility to inform us of their new address - if they have moved - or if they wish, to sell or buy new shares."

However, shareholders will be charged 10% of their share value to do any of the above.

Derek Woodward admitted that this is more than the normal share dealing facility but insisted:

"These are people who have lost their shares, possibly lost their certificates, and we are reuniting them with their assets."

Sharegift

One option for the shareholders is to gift the shares to charity.

The charge is to cover the dealing costs involved in translating an asset into money Derek Woodward, Centrica

Centrica is working with Sharegift - the charity share donation scheme - to make this possible. But once again a charge applies.

Derek Woodward said this too is necessary:

"It is a small charge, and the reason for that is that we have worked with Sharegift to structure the donation in a tax efficient way, so the charity actually receives 28% more by going down this particular route.

"The charge is to cover the dealing costs involved in translating an asset into money."

Centrica has also identified about 600,000 of its shareholders who own 300 shares or fewer.

These shareholders will also have received letters asking them to consider buying more shares, up to a value of £5000; or to sell them at a special share dealing rate.

But Mr Woodward denied this was an attempt to get rid of small shareholders because they are expensive or inconvenient.

"We welcome all of our shareholders," he said. "This is all about enhancing the service that we give."

And he was keen to point out that shareholders could take no action if they wished.

But he admitted that "ultimately some shareholders would go". And for those that do, once again, they will face a charge.

This time the charge will be around £15 or £20 "for the majority of people" but will be "kept at a maximum of £30" according to Mr Woodward.

And he was adamant the charge is "extremely competitive compared with other dealing arrangements you can get on the high street".

Shareholders have until 12 December, 2003 to contact the company.

BBC Radio 4's Money Box was broadcast on Saturday, 15 November, 2003 at 1204 GMT.

The programme was repeated on Sunday, 16 November, 2003 at 2102 GMT.