Corporate Update

Scottish & Southern Energy PLC
06 January 2006


HOCHTIEF AG APPOINTED MAIN CONTRACTOR FOR GLENDOE HYDRO ELECTRIC SCHEME

Scottish and Southern Energy plc ('SSE') has appointed Hochtief AG as the
contractor for the construction of the new hydro-electric scheme at Glendoe,
near Loch Ness.

The value of the contract is around £126m and follows a competitive tendering
process in accordance with the requirements of the European Procurement
Directives. Full construction work on the scheme, which will have an installed
capacity of around 100MW, is now getting under way.

The Hochtief contract comprises the planning and turnkey operation of a 900
metre long dam, extensive subterranean construction, including the powerhouse
cavern, as well as 16km of tunnel work.

Ian Marchant, Chief Executive of SSE, said:

'I am pleased that we have completed this agreement with Hochtief and that full
construction work on the Glendoe scheme is now getting under way. It has the
specialist skills that are necessary to deliver Scotland's first large-scale
conventional hydro-electric scheme for 50 years. We have impressed upon Hochtief
the need to maximise the use of local business and services throughout the
three-year construction programme.'

Enquiries to:


Alan Young, Director of Corporate Communications           0870 900 0410
Jennifer McGregor, Public Affairs Manager                  0870 900 0410





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