Receipt of OFGEM Paper

Scottish & Southern Energy PLC
29 November 2004


N E W S  R E L E A S E  F R O M . . . .

FOR IMMEDIATE USE Ref: NR-4254 29 November 2004

                  SCOTTISH AND SOUTHERN ENERGY RECEIVES OFGEM
                                FINAL PROPOSALS

Scottish and Southern Energy plc ('SSE') has received from Ofgem its Final
Proposals Paper in respect of the electricity distribution price control review
for 2005 to 2010.

The Paper addresses in detail a wide range of issues. These include future
allowed operational and capital expenditure, operational expenditure efficiency
assumptions, the treatment of pensions costs and tax charges, the level of real
post-tax cost of capital, the incentive framework for delivery of good
performance and a variety of other issues, some of which are specific to
individual distribution companies.

SSE has begun assessing the Paper to determine whether the overall package of
proposals it contains in respect of Southern Electric Power Distribution and
Scottish Hydro-Electric Power Distribution will allow it to deliver the right
quality of service to customers while achieving a reasonable return for
investors. SSE expects to complete, and then announce, the outcome of its
assessment by the middle of December.

                                      - ENDS -

Enquiries to:
Alan Young - Director of Corporate Communications - 0870 900 0410
Denis Kerby - Investor and Media Relations Manager - 0870 900 0410



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