Termination of Discussions

Scottish & Southern Energy PLC
25 September 2003

            TERMINATION OF DISCUSSIONS WITH AVON ENERGY BONDHOLDERS


On 22 May 2003, Scottish and Southern Energy plc ('SSE') announced it had agreed
terms with Aquila, Inc. and FirstEnergy Corp ('the shareholders') for the
purchase of Aquila Sterling Ltd ('ASL'), which owns Midlands Electricity plc and
other businesses, subject to holders of three outstanding Avon Energy Partners
Holdings bonds ('the bondholders') agreeing to accept a cash payment in
consideration for the bonds which would be the equivalent of 86 pence in the
pound/cents in the dollar.

SSE stated then that if the bondholders did not accept the proposed cash
payment, it would not proceed with the acquisition. It has now become apparent,
following discussions with representatives of the ad hoc committee representing
bondholders, that the proposed cash payment to them will not be accepted. As a
result, SSE and the shareholders have ended discussions with the committee and
have begun steps to terminate the sale and purchase agreement

Ian Marchant, Chief Executive of SSE, said:

'We believe that the enterprise value we offered for Midlands Electricity was
fair, based on months of careful discussion and due diligence. But discipline
remains our watchword and we are not prepared to jeopardise shareholder value by
paying more.

There remain major opportunities in the UK energy market and the future
development of SSE will continue to be based on the delivery of solid,
sustainable performance in our established operations of generation, supply,
power systems and their related businesses.

We have recently grown our energy supply business to more than five million
customers and we are also investing £1 billion in renewable generation,
electricity networks and gas storage. We remain focused on delivering
shareholder value from these activities.'

For further information please contact:

Scottish and Southern Energy plc

Alan Young - Director of Corporate Communications      [phone]

Denis Kerby - Investor Relations Manager               [phone]

Financial Dynamics

Andrew Dowler                                          [phone]


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