Statement re Customer Growth

Scottish & Southern Energy PLC 26 April 2007 SCOTTISH AND SOUTHERN ENERGY PLC MAJOR CUSTOMER GROWTH MILESTONES Scottish and Southern Energy plc ('SSE') achieved two major customer growth milestones in the year to 31 March 2007, with a net gain of over one million energy customer accounts in one year for the first time and the achievement of 100,000 'talk with' telecoms customers. SSE, which supplies energy as Southern Electric, SWALEC, Scottish Hydro Electric and Atlantic Electric and Gas, gained 1.05 million customers during the year and now has 4.95 million electricity customers and 2.80 million gas customers. It is the UK's third largest energy supplier. The gain of 1.05 million customers in 2006/07, a growth of 15%, was the highest ever achieved by SSE and represented the best performance by any UK energy supply business. The achievement of 100,000 telecoms customers for the first time follows the full launch of its fixed-line service for domestic customers and means SSE now has a total customer base of 7.85 million, an increase of 3.35 million in the last five years. The growth in energy supply customers in 2006/07 was supported by SSE's responsible pricing strategy, as a result of which its customers paid an average of £340 less for their gas and electricity during the three years of rising wholesale energy prices than did customers of British Gas. On 1 March, SSE started implementing a cut of 12% in its average gas bill and on 1 April it started implementing a cut of 5% in its average electricity bill. It is one of just two energy suppliers to have begun implementing price cuts. At £913, British Gas' new average annual dual fuel bill, announced today, remains £40 higher than SSE's average annual dual fuel bill of £873.* The increase in customer numbers was also achieved at the same time as another significant reduction, of 47%, to 840, in the number of complaints about SSE sent to energywatch for resolution in the year to March 2007. This made SSE the best-performing company.** Ian Marchant, Chief Executive of SSE, said: 'I am delighted that our commitment to responsible pricing and best-in-sector service has enabled us to gain over one million customers in the past year. We remain committed to both of these objectives and expect, therefore, to continue to attract many new customers in the course of the next year.' * Based on the average standard quarterly payment across Great Britain and on annual gas consumption of 20,500 kWh and annual electricity consumtion of 3,300 kWh. Prices include VAT but exclude Early Payment Discount of 4.3% which SSE offers to customers who pay their bills quarterly. ** In its statement on 23 April - 'energywatch reports record number of complaints by British Gas customers' - energywatch stated that it had received 840 complaints about SSE, which was the best-performing company, over the year. This compares with 2,509 for the second best-performing company and 37,100 for the poorest-performing company, British Gas. 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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