Statement re OFGEM Price Controls

Scottish & Southern Energy PLC 2 December 1999 Scottish and Southern Energy plc ANNOUCEMENT The Board of Scottish and Southern Energy plc notes today's announcement by Ofgem in regard to future price controls. The Board expects to announce its formal response within the timetable set by the Regulator and intends, early next year, to make a statement clarifying its future financial strategy, efficiency improvements and response to price controls. Subject to market conditions, the Board may make use of its authority to purchase the company's own shares in the market from time to time and in circumstances where the Directors consider that this will increase value for shareholders. The current share price authority, granted at the last Annual General Meeting, allows market purchases of up to 87,571,471 shares, representing approximately 10 percent of the issued share capital of the company. The authority expires at the conclusion of the next Annual General Meeting of the company. For further information: Scottish & Southern Energy 01738 455113 Carolyn McAdam Financial Dynamics 0171 831 3113 Andrew Dowler

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