SSE INFORMS PRICE CHANGES

Scottish & Southern Energy PLC
16 February 2005


                            SSE INFORMS CUSTOMERS OF
                       ELECTRICITY AND GAS PRICE CHANGES

Scottish and Southern Energy has begun informing its domestic electricity and
gas customers that its prices for energy will rise, either from 1 March 2005 or,
for around 550,000 customers, from 1 July 2005. Across Great Britain, the
average price rise for electricity customers will be 6.7% (3.7% in the north of
Scotland) and the price rise for gas customers will be 9.1%.

SSE will hold its electricity prices at their revised level until at least
January 2006 and will seek to do the same with gas prices. The position with gas
prices is, however, dependent on trends in the wholesale gas market.

The increases for around 550,000 SSE customers who use pre-payment meters or are
on the 'BudgetWarmth' and 'easywarm' tariffs will be delayed until 1 July 2005.
They will also not apply to customers who signed up with SSE after 1 January
2005 or who sign up before 1 April 2005. Prices for these customers will remain
at current levels until at least 1 July 2005.

The company last announced a change in domestic energy prices in June 2004 and
while all the other major energy supply companies raised their prices two or
three times during 2004, SSE made just one increase.

As part of a package of changes, SSE is extending to all customers its prompt
payment discount of 3.5%, currently only available to around 50% of its
customers. This means that they can reduce the price rise by 3.5% if they choose
to pay promptly.

SSE's customers obtain a 6% discount on their unit charges for energy if they
pay by direct debit. The company also offers 'tailor-made' payment arrangements
to help customers in need, with around 200,000 households taking advantage of
these arrangements during 2004.

Between 2005 and 2008 SSE expects to help around 250,000 'priority' households
to lower their energy bills through the provision of free energy efficiency
measures such as loft and cavity wall insulation. Its customers can obtain free
energy efficiency advice by calling the company's 'energyline' on 0845 777 6633.

In addition, SSE has appointed a new Head of Priority Services with a brief to
assemble a new package of measures to help the most vulnerable customers,
including a special tariff designed to meet their needs. Details of this package
will be set out at the Amicus conference on 1 March and the package itself will
be made available later this year. In the meantime, customers who are over 60,
who have disabilities or who suffer from long-term ill health can receive free
services by registering with SSE's 'Careline' free on 0800 622 838. To date,
almost 200,000 electricity and gas customers are on this register.

Ian Marchant, Chief Executive of SSE, said: 'In line with our policy of adopting
a responsible approach to pricing, we gave a commitment last summer to hold
domestic energy prices at their current levels until at least early 2005. Since
that commitment was made, every other energy supplier has increased prices - in
some cases, twice.

'The impact of high wholesale energy prices can, however, only be absorbed for
so long, and now is the point at which we have to increase prices. Nevertheless,
I am pleased that we have been able to delay to July the increase for around
550,000 customers.

'Longer term, we will continue to adopt a measured and responsible approach to
domestic energy pricing, while giving renewed focus to helping especially
vulnerable customers. That's why we have given a commitment to hold electricity
prices at their revised levels until at least January 2006.'

Enquires to:

Alan Young, Director of Corporate Communications    0870 900 0410
Denis Kerby, Investor and Media Relations Manager   0870 900 0410



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