Reward Product

Scottish & Southern Energy PLC
31 May 2007


                        SCOTTISH AND SOUTHERN ENERGY PLC

            NEW PROGRAMME TO REWARD CUSTOMERS FOR ENERGY EFFICIENCY

Scottish and Southern Energy plc ('SSE'), the UK's third largest supplier of
electricity and gas, will later this year launch a new programme which will help
customers to reduce their energy consumption and reward them for doing so.  This
will be the most comprehensive programme introduced by an energy supplier in the
UK to incentivise its customers to use less of its core products.

In the programme SSE will work with its customers to use less energy, save money
and help them address climate change.  Customers will earn 'energy efficiency
credits' by: reducing their consumption of electricity and gas over time;
investing in energy efficiency measures such as loft insulation or the
replacement of inefficient appliances with A-rated ones; and taking steps to
minimise other environmental impacts by, for example, opting for electronic
billing.  The credits can then be used towards their SSE energy bills or further
energy efficiency measures.

In the first year a customer with average* energy use could secure credits worth
around £100 by actions including: reducing their consumption of electricity and
gas by around 10%; buying one new low-energy appliance at about  £250; and
installing loft insulation with a net cost of around £200.  These credits would
be in addition to the direct energy bill savings achieved as a result of cutting
consumption and savings on the underlying cost of appliances themselves.  There
will be no premium on the price of the electricity and gas supplied in the
programe compared with standard tariffs.

Of all the UK's energy suppliers, SSE already includes the highest component of
renewable energy in the fuel mix of the electricity it supplies to customers.
It has set itself a target to reduce by 20% the amount of carbon dioxide per
kilowatt hour of electricity produced at power stations in which it has an
ownership or contractual interest.  The base year for the target is 2005/06 and
SSE aims to achieve the 20% reduction by 2015/16.

Ian Marchant, Chief Executive of SSE, said:

'Last week's White Paper said the starting point for energy policy is to start
saving energy, and we need to change the way we consume electricity and gas in
the UK.  Our homes account for a quarter of the UK's carbon emissions.  We can't
turn the clock back to the days of candles and log fires.  But we can turn it
forward, and use modern technology to hasten the move towards a lower-carbon
society.  To do this will require a partnership between customers and their
energy suppliers, and it is precisely that kind of partnership which this
programme will be all about.  Put simply, we want to reward our customers for
doing the right thing.

It may seem odd for a company to actively work to reduce demand for its core
products, but we believe it's the only way forward that is sustainable for our
business and for society as a whole.'

* SSE's annual dual fuel cost for the average customer (3300kWh electricity,
20500kWh gas) paying quarterly on its standard domestic tariff averaged across
all electricity regions in the UK and including VAT of 5% is £872 per annum.


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