eaga Plc (EAGA.L) said it has reached agreement, subject to contract, with the Government on an extension to the contract to deliver the Warm Front Scheme to 31 March 2011, which is the end of the current Government spending period. There is provision for a further extension of up to two years beyond that point.
As part of negotiations, a number of structural changes to the Scheme have been agreed, which will drive improvements for customers and provide greater value for money across the supply chain.
eaga does not expect that these structural changes will materially alter its financial performance in delivering the Scheme over the extended period of the contract.
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