Abolition of Tariff Surcharge

Scottish & Southern Energy PLC
15 November 2006


15 November 2006

                        SCOTTISH AND SOUTHERN ENERGY PLC
             ABOLITION OF ELECTRICITY PRE-PAYMENT TARIFF SURCHARGE

Scottish and Southern Energy plc ('SSE') has decided to abolish the extra charge
levied on all of its electricity (pay as you go) or pre-payment tariffs in
England and Wales compared with its standard credit tariffs.

The decision follows the recent request to energy suppliers by Child Poverty
Action Group, End Child Poverty, Disability Alliance, Help the Aged, Age
Concern, Citizens' Advice, National Consumer Council, National Energy Action and
energywatch.

The decision will help almost half a million customers of SSE reduce their
electricity bills by an average of around 6% or around £23.00 a year from 2007,
compared with the average standard quarterly price.

Pre-payment meters are used by customers as a way to help them budget - and
around half of electricity pre-payment meters are installed by suppliers to help
customers repay energy debt.

There is no such extra charge on SSE's electricity prepayment tariffs in
Scotland, which are already equalised with its standard credit tariffs.

In addition, SSE is already one of just two energy suppliers which does not levy
'back charges' for the period between a price increase being implemented and the
pre-payment meter being adjusted to reflect the increase.

Alistair Phillips-Davies, Energy Supply Director said:

'While many customers choose pre-payment tariffs because it is their preferred
method of budgeting, it is also clear that the tariffs are used by significant
numbers of lower-income customers. Abolishing the surcharge will complement our
existing policy of not levying back charges on such tariffs and will directly
help almost half a million customers.'

Enquiries to:

Scottish and Southern Energy plc
Alan Young - Director of Corporate Communications       + 44 (0)870 900 0410
Denis Kerby - Investor and Media Relations Manager      + 44 (0)870 900 0410

Financial Dynamics
Andrew Dowler                                           + 44 (0)20 7831 3113






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