Auction Gas Storage Capacity

Scottish & Southern Energy PLC
30 June 2006


                        AUCTION OF GAS STORAGE CAPACITY


SSE Hornsea, a subsidiary of Scottish and Southern Energy plc ('SSE'), has
completed the auction of around 23% of the capacity (43.9 million Standard
Bundled Units, or SBUs) at its gas storage facility at Hornsea for a five year
term which will commence in May 2007. The average price achieved per SBU was
41.7 pence per annum over each of the five years.

In March, SSE Hornsea auctioned 54 million SBUs for the one year term which
commenced in May 2006. The average price achieved per SBU then was 54.2 pence
per annum.

Hornsea has 195 million Standard Bundled Units available in total. Each SBU
provides capacity to inject gas into the facility, store gas there and withdraw
gas from it.

Ian Marchant, Chief Executive of SSE, said:

'Our gas storage business at Hornsea has been very successful, with year-on-year
increases in the value of contracts to provide storage. We are very pleased with
the outcome of this auction, which has again emphasised the importance and value
of gas storage in the UK.'

NOTES

SSE owns and operates the UK's largest onshore gas storage facility at Hornsea
in East Yorkshire, which it acquired in 2002 for £132.7m. Nine man made salt
cavities have been leached into a salt layer 1.8 kilometres below the surface
creating 325 million cubic metres of gas storage space (or around 195 million
Standard Bundled Units).

Gas can be withdrawn at a rate of 18 million cubic metres per day, the
equivalent of the requirements of around four million homes. In 2005/06, SSE's
gas storage business at Hornsea delivered an operating profit of £27.3m, during
which the average achieved SBU price was 16.5 pence.

SSE's joint venture with Statoil (UK), in which SSE is investing £150m, is
developing what will become the UK's largest onshore gas storage facility at
Aldbrough, which is adjacent to Hornsea.

Enquiries to:
Scottish and Southern Energy
Alan Young, Director of Corporate Communications     0870 900 0410
Denis Kerby, Investor and Media Relations Manager    0870 900 0410



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