SSE claim in admin. of TXU

Scottish & Southern Energy PLC
03 December 2004


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


FOR IMMEDIATE USE                 Ref: NR-4258                   3 December 2004
                        SCOTTISH AND SOUTHERN ENERGY AND
                          ADMINISTRATION OF TXU EUROPE


Following the failure of TXU Europe, which went into administration in November
2002, a subsidiary of Scottish and Southern Energy plc ('SSE') lodged a claim
for over £300m with the administrators.

The claim is in respect of the termination of a 14-year contract between SSE
Energy Supply Ltd ('SSEESL'), a subsidiary of SSE, and TXU Europe Energy Trading
Ltd ('TXU Trading'), originally entered into in 1997, and was made under the
terms of that contract. In early 2003, when the claim was submitted, SSE stated
that it was well-placed relative to other creditors and that it believed that
more than 50% of it would be settled.

The administrators of TXU Europe Group plc ('TXUEG') and certain of its
subsidiaries have today issued an Information Memorandum in relation to a
company voluntary arrangement ('CVA') which enables TXUEG and certain of its
subsidiaries to agree with its creditors a Scheme of Arrangement which will
determine how outstanding debts should be paid, and in what proportions.
The majority of the creditors, including SSEESL, have entered into 'lock-up'
agreements under which these creditors have agreed, or provisionally agreed, to
vote in favour of the CVA. The creditors' meeting to approve this is due to take
place on 28 January 2005.

SSEESL's claim has been agreed at £294.2m and, whilst the CVA remains subject to
creditor approval, SSE now expects that more than 75% of its agreed claim will
be settled. As previously stated, recovery from the administration will be
firstly offset against a debtor of £48m. The remaining balance will be
recognised in the profit and loss account, along with the associated tax charge.
It is currently anticipated that the first distribution to CVA creditors will be
made on or around 31 March 2005, with other distributions being made in the
autumn of 2005 and the spring of 2006.


                                    - ENDS -


Enquiries to:

Alan Young    Director of Corporate Communications    0870 900 0410
Denis Kerby   Media and IR Manager                    0870 900 0410




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