Corporate Update

Scottish & Southern Energy PLC
31 March 2005


                        SCOTTISH AND SOUTHERN ENERGY PLC
                 FIRST TXU ADMINISTRATION DISTRIBUTION RECEIVED

Scottish and Southern Energy plc ('SSE') announced on 3 December 2004 that its
subsidiary, SSE Energy Supply Ltd, had agreed a claim of £294.2m with the
administrators of TXU Europe Group plc and certain of its subsidiaries in
respect of a 14-year contract originally entered into in 1997.

It said that it expected that more than 75% of its agreed claim would be
settled, subject to creditor approval of a company voluntary agreement (CVA),
and that it was anticipated that the first distribution to creditors would be
made on or around 31 March 2005, with other distributions being made in the
autumn of 2005 and the spring of 2006.

The CVA was approved on 28 January 2005 and SSE has now received the first net
distribution of £159.1m from the administrator.

Enquiries to:
Scottish and Southern Energy
Alan Young, Director of Corporate Communications0870 900 0410
Denis Kerby, Investor and Media Relations Manager0870 900 0410




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