Carbon Emission Reduction Cer

Scottish & Southern Energy PLC
25 June 2007



               PURCHASE OF CARBON EMISSION REDUCTION CERTIFICATES


Scottish and Southern Energy plc ('SSE'), through its subsidiary, SSE Energy
Supply Ltd, has finalised the first of four agreements with GD Power Development
Co. Ltd (a subsidiary of China Guodian Corporation, one of China's major energy
companies) to support the development of four new wind farms in north east
China. SSE Energy Supply Ltd will purchase approximately two million Carbon
Emissions Reduction Certificates (CERs) over a period of five years from the
start of 2008.

Under the Clean Development Mechanism (CDM) established under Article 12 of the
Kyoto Protocol, countries - and therefore companies - can meet their carbon
emission reduction targets by purchasing CERS from CDM-approved carbon reduction
projects in the developing world. This is the first time that SSE has directly
acquired primary CERs from a project.

Each of the four wind farms is expected to have an installed capacity of around
50MW and will displace carbon emissions from coal-fired power stations in the
region, leading to around two million tonnes of carbon dioxide being avoided.
The construction of the first of the wind farms, GD Xingcheng Haibin is already
under way and the last of them is expected to be commissioned during 2008.

In May 2007, SSE announced that it has set itself a target to reduce by 20% over
10 years to 2016 the amount of carbon dioxide per kilowatt hour of electricity
produced at power stations in which it has an ownership or contractual interest.
It said its target would include CERs from specific generation projects under
the CDM, but would exclude those which are not related to a specific generation
project.

In March 2007, the UK government published its Approved National Allocation Plan
for Phase II of the EU Emissions Trading Scheme, from 2008 to 2012. Across its
generation portfolio (taking account of contractual shares), SSE will receive an
allocation of 16.3 million tonnes per annum, compared with 19.6 million tonnes
per annum in Phase 1. SSE's Phase II allocation as a percentage of its Phase I
allocation is around 83%, compared with around 80% across the electricity sector
as a whole.

The agreements were brokered by Tradition Financial Services (TFS) in London and
Easy Carbon in Beijing and are expected to be finalised in July. All agreements
are subject to approvals by the Executive Board of the United Nations Framework
Convention on Climate Change (UNFCC).

Ian Marchant, Chief Executive of SSE, said:

'Climate change is literally a global challenge and supporting the development
of clean sources of energy anywhere in the world is a key means of addressing
it. We have deliberately acquired CERs which relate to a mature electricity
generation technology which we have experience of operating, because we want to
be sure that they are making a real difference.

'The large majority of our investment in reducing carbon emissions will continue
to be in the UK, but CERs are an effective means of supplementing it.'


Enquiries to:

Scottish and Southern Energy plc
Justyn Smith - Head of Media Relations                  + 44 (0)845 0760 530
Sharron Miller-Mckenzie - Press Office Manager          + 44 (0)845 0760 530



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