Corporate Update

Scottish & Southern Energy PLC
01 April 2005



                 Aldbrough Gas Storage facility starts leaching


Scottish and Southern Energy has today confirmed that it has received approval
to begin 'leaching' the nine caverns that will be used to store gas at its
Aldbrough Gas Storage Facility. The project, a joint venture between SSE Hornsea
Limited (a subsidiary of Scottish and Southern Energy (SSE)) and Statoil (U.K.)
Limited, to create nine caverns which can store up to 420 million cubic metres
of working gas will provide essential additional storage for the UK energy
industry.


The site is located 2.5km south-east of Aldbrough and 1.5km inland from the
coast. Once completed, the Aldbrough facility will be able to provide enough gas
in a day to supply around four million homes.


The nine caverns will be created by directionally drilling from a Central
Processing Area down to the salt strata. Seawater is then pumped into the
boreholes to dissolve the salt and form the caverns - a process known as
leaching. The process will take around four years to complete with the first
cavern expected to be ready to store gas by 2007.


                                    - ENDS -


Enquiries to:
Scottish and Southern Energy
Julian Reeves, Communications Manager            Tel no: 0870 9000 410





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