Acquisition

Scottish & Southern Energy PLC
30 September 2002



                        SCOTTISH AND SOUTHERN ENERGY PLC

                          ACQUIRES DYNEGY HORNSEA LTD



Scottish and Southern Energy plc (SSE) has purchased Dynegy Hornsea Ltd from
Dynegy Inc for a total cash consideration of £129 million plus working capital
of £1.4 million. Dynegy Hornsea Ltd comprises the Hornsea gas storage facility
on the east coast of Yorkshire, plus the development rights to the adjacent
Aldborough site.

The Hornsea facility has nine cavities with a total storage capacity of around
325 million cubic metres, and could be expanded further. It operates as a tool
for meeting peak demand for gas and is capable of exporting around 18 million
cubic metres a day and importing around 2 million cubic metres a day. The site
is connected to the Transco National Transmission System via two pipelines.

The Aldborough site has received planning permission for the creation of a
further six gas storage cavities with a capacity of around 170 million cubic
metres. Planning consents are in place and are valid until 2005.

The acquisition of the Hornsea facility will enable SSE to benefit from the
ownership and management of a storage facility for which there is substantial
and ongoing demand. The acquisition is expected to be earnings enhancing, pre
and post goodwill, in the first year.

Jim Forbes, Chief Executive, said:

'The acquisition of the Hornsea facility will complement SSE's existing business
and will enable us to exploit further our ability to manage energy assets. It
will also give SSE future development and earnings potential.'

Ian Marchant, presently Finance Director and Chief Executive from 1 October,
said:

'SSE's reputation has been built on its focus on the UK utility business. The
acquisition of the Hornsea gas storage facility is fully in line with this. It
will be a small but valuable addition to our existing businesses.'

Enquiries to:

Scottish and Southern Energy

Alan Young - Director of Corporate Communications          0870 900 0410

Denis Kerby - Investor Relations Manager                   0870 900 0410

Financial Dynamics

Andrew Dowler                                              0207 831 3113
 
Fiona Meiklejohn                                           0207 831 3113






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