The power industry would develop along the lines of the oil business with a few large firms, similar to the US giant Exxon Corp., with integrated activities across many countries.

"The key word in future will be `consolidation'," Wallis told Reuters at an industry gathering in Thailand. "We are starting to create the Exxon's of the power industry and PowerGen aims to be one of those players."

Created from part of the former British state electricity company, PowerGen was privatised in 1991 and is now Britain's second largest non-nuclear electricity producer with a turnover last financial yearof 2.93 billion pounds ($4.86 billion).

It now aims to become an integrated energy group. Earlier this year, it bought British regional electricity supply firm East Midlands, which also distributes gas, for 1.9 billion pounds.

"I think you will see six or eight international companies which become very big," Wallis said.

"I think we will either be one of those because we have been taken over to be part of one or we have taken others over and have become one ourselves," he said.

But Wallis said PowerGen was unlikely to be taken over soon. The acquisition of East Midlands had given it more debt and its share price would be regarded by potential buyers as too high.

Wallis said that the purchase of East Midlands had given it 2.3million British customers and a supply system that it could use as a "springboard" to expand in the rest of Britain.

"This gives us an opportunity to obtain growth opportunities in the market," he said. "It helps us realise a strategic dream. Access to those customers, theability to sell bundled gas and electricity to them will mean that we can become a leader nationally in competition for gas and electricity."

Wallis said the East Midland's deal had put a possible acquisition in the United States, much discussed earlier in the year, on the backburner for a while.

"There are a lot of opportunities in the (United) Statesand we were talking to a lot of companies and if we could find the right company with the right management, we would do a deal.

"But clearly our objective now is to consolidate the takeover of East Midlands. So we are not actually on the front foot on looking for an American opportunity because what with the international business and East Midlands we have rather a lot to do," he said. "You have to get your ducks in a row."

As a result of the East Midlands deal, PowerGen has been ordered by the British government to sell two of its five major coal-fired power stations, which account for 4,000 of its 14,000 megawatts of generating capacity.

"Having justspent 1.9 billion sterling on East Midlands I wouldn't say I had a very big war-chest," Wallis said. "In a year's time we have to say: `What can we do next? What can we afford to do next?' But we'll get to that when we get there."

"It depends what the opportunities are. If you have got a very good opportunity you can always get hold of money to buy. So we will have to see what opportunities come."

"If you are in a phase where you are consolidating a major acquisition, then you are pausing. But it's a question of months, not years. Maybe three or four months."

PowerGen has expanded into Asia and Europe in recent years by investing a $1 billion and has generating capacity in many countries including India, Australia, Portugal and Hungay.

"By the year 2003 we will actually produce in energy terms as much electricity overseas as we do in the UK -- about 50 terawatt (million megawatt) hours," he said.

This would be built on in future.

"There is no point in just having single power stations scatteredaround the world. One wants to get to a position where you have 15 per cent of the market in a country where you set out to develop critical mass. And that is what we would like to do. I would like to do that in four or five countries," he said.

Wallis declined to detail possible future acquisitions.

"Wait and see. We are waiting for the next attractive opportunity that comes along that is doable in the UK and overseas. We keep all our options open."