Stmt re PFI Agreement

Scottish & Southern Energy PLC
01 April 2004



Scottish and Southern Energy sign £250 million PFI Agreement with Newcastle City
and North Tyneside Councils

Scottish and Southern Energy ('SSE') has signed a £250 million Private Finance
Initiative (PFI) contract with Newcastle City and North Tyneside Councils to
replace and maintain street lights for the two authorities for the next 25
years. A consortium comprising SSE, its subsidiary company, SEC Lighting
Services (SEC), with funding from The Royal Bank of Scotland, will work in
partnership with both Councils to provide high quality street lighting
throughout the City.

Work will commence in July to roll out the scheme which will see 80% of the
lights in Newcastle and North Tyneside replaced over the next five years. A
total of 50,000 new lighting columns and 8,000 traffic signs and bollards will
be installed, with older lighting columns being replaced with new.

In addition SSE will supply electricity for the City's street lighting with
Green electricity, generated from renewable energy sources such as hydroelectric
and wind, for the next three years.

SSE's Chief Executive Ian Marchant commented: 'This is a very important contract
for us and is the second time we have taken on a PFI contract to replace and
maintain street lighting. We are very much looking forward to starting the
replacement and maintenance contract as well as supplying clean green
electricity to the City. I am very hopeful that our PFI solution will become a
model for future deals.'

For further information Contact:

Alan Young Director of Corporate Communications 0870 900 0410

Denis Kerby Investor and Media Relations Manager 0870 900 0410







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