Director Shareholding

Scottish & Southern Energy PLC
03 July 2003


The Company announces the purchase of 191,000 ordinary shares of 50p each in the
Company at an average price of £6.2553 per share on 2 July 2003 by Bedell and
Cristin Trust Company Limited ('the Trust') as Trustee of the Scottish and
Southern Energy Deferred Bonus Plan ('the Plan').

The performance-related awards under the Plan were granted on 2 July 2003 to
senior managers including the Executive Directors and will (subject to the rules
of the Plan) be satisfied after 3 years using shares held by the Trust.

The share awards for the Executive Directors were as follows:

Ian Marchant              30,560

Colin Hood                19,100

Alistair Phillips-Davies  15,280

David Sigsworth           18,336

Gregor Alexander          12,224

The Plan is designed to contribute to increasing shareholder return and
motivation of senior management over the longer-term. Awards to participants in
the Plan are dependent on the performance by individuals and by the Company.
Participants are granted awards equivalent to their actual short-term bonus. As
stated in the Annual Report and Accounts 2003, the value of the award is
adjusted by reference to three factors: the company's relative performance in
terms of Total Shareholder Return over a three-year period; safety (which is
externally verified and compared to other energy companies) and relative
performance in terms of customer complaints as recorded by the independent
regulatory body, energywatch.

Each Executive Director will only receive from the Trust the number of shares to
which they are entitled under their award. For Companies Act purposes, the
Executive Directors are technically regarded as having an interest in all those
shares held by the Trust.


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