Award of Contract

Scottish & Southern Energy PLC
18 October 2006


               AWARD OF £5M CONTRACT TO EASTERN CONTRACTING


Eastern Contracting, the operation acquired by Scottish and Southern Energy plc
('SSE') in 2005 in a transaction worth around £2m, has won the second phase of
an infrastructure contract at Colchester Garrison worth almost £5m. Eastern
Contracting is a fully-integrated part of SSE's Contracting Group.

The work is part of the £2 billion Colchester Garrison Redevelopment - one of
the UK's largest PFI (Private Finance Initiative) projects to date.

In 2004, the Ministry of Defence employed RMPA Services Plc, a consortium made
up of Sir Robert McAlpine Ltd, HSBC Infrastructure, Atkins and Sodexho UK, to
carry out a 35-year PFI contract aimed at modernising the garrison. The
modernisation involves the two-phase construction of a new garrison facility,
refurbishment of the existing buildings and demolition of redundant garrison
buildings.

Phase One of Eastern Contracting's work - the provision of the gas, water and
electricity infrastructure - was carried out in 2005. Phase Two has been
separated into electrical and mechanical packages, with Eastern Contracting
doing the electrical infrastructure.

Ian Marchant, Chief Executive of SSE, said:

'Our priorities for our Contracting businesses are to ensure there is good
performance in long-term contracts, with a view to securing as much 'repeat'
business as possible. In this context, this is a very significant contract for
Eastern Contracting. It is particularly encouraging to have been awarded this
second phase of construction work as it demonstrates the success of our work in
the first phase.'


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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