ENERGY PRICES TO FALL

Scottish & Southern Energy PLC
28 February 2007


                             ENERGY PRICES TO FALL

                           STARTING FROM 1 MARCH 2007


Scottish and Southern Energy plc ('SSE'), currently the UK's cheapest supplier
of energy*, has decided to implement cuts in prices for domestic customers,
starting from tomorrow (1 March)**.

It will:

   •cut the average annual gas bill* by £72, to £534, a decrease of 12%,
    starting from 1 March;
   •cut the average annual electricity bill* by £18, to £355, a decrease of
    5%, starting from 1 April; and
   •cut the average annual dual fuel* bill* by £89, to £873, a decrease of
    9%.


     Average annual dual fuel bill following all forthcoming price changes*

       Energy Supplier                 £ per annum inc VAT         % Difference

Scottish and Southern                                  873                   -
Npower                                                 909                +4.1%
EON UK (Powergen)                                      913                +4.6%
British Gas                                            953                +9.1%
EDF Energy                                             971               +11.2%
Scottish Power                                         990               +13.4%


This means SSE will continue to be the UK's cheapest supplier of energy, even
after all the recently-announced price cuts take effect.*

SSE will waive any termination fees which may apply to any of its customers who
are on its fixed price tariffs to enable them to take advantage of its new,
lower prices without any penalty, if they wish.

SSE supplies energy as Southern Electric, SWALEC, Scottish Hydro Electric and
Atlantic and is the UK's third largest supplier of energy, with over 7.5 million
customers.

During periods of rising wholesale energy prices, SSE passed on to its customers
much less than the full extent of the increases and it delayed any price rises
for as long as possible. As a result, its customers have now paid an average of
£340* less for their gas and electricity in the last three years than have
customers of British Gas.

SSE announced on 31 January that it had written to its customers to confirm that
it would cut gas and electricity prices within the next few months.

Alistair Phillips-Davies, Energy Supply Director of SSE, said:

'While wholesale energy prices were rising in recent years, we protected our
customers from the worst impacts of the increases, with the result that we have
been the UK's cheapest supplier of energy for most of that period.

'Since last September, we have made clear our intention to cut gas and
electricity prices if there was a sustained fall in wholesale prices which would
allow us to do so, and so I am very pleased that we have now been able to make
this announcement. It means we are able to start cutting prices immediately.

'Energy prices are driven by a number of factors and future trends in wholesale
gas and electricity prices are always difficult to predict. Nevertheless, I hope
that today's announcement marks the start of a sustained downward trend in the
prices paid by customers.'

*Based on the average standard quarterly payment across Great Britain and on
annual consumption of 20,500kWh of gas and 3,300kWh of electricity. Prices
include VAT but exclude Early Payment Discount of 4.3% which SSE offers to
customers who pay their bills quarterly. SSE is one of just two energy suppliers
to offer such a discount.

**The lower prices will be applied to gas usage on billing periods that commence
on or after tomorrow (1 March). For electricity, the lower prices will be
applied to usage on billing periods that start on or after 1 April.


Enquiries to:

Scottish and Southern Energy plc
Justyn Smith - Head of Media Relations                  + 44 (0)870 900 0410
Sharron Miller-Mckenzie - Press Office Manager          + 44 (0)870 900 0410




                      This information is provided by RNS
            The company news service from the London Stock Exchange
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