Acquisition

Scottish & Southern Energy PLC
30 July 2004

30 July 2004


                      SCOTTISH AND SOUTHERN ENERGY PLC

         ACQUISITION OF FERRYBRIDGE AND FIDDLER'S FERRY POWER STATIONS


Scottish and Southern Energy plc ('SSE') has acquired the Ferrybridge and
Fiddler's Ferry power stations and associated coal stocks of 1.6m tonnes from
AEP Energy Services UK Ltd for £136m in cash. In addition, SSE has acquired fuel
in transit and contracts to supply fuel for the power stations for $208m.  The
total payment to AEP will, therefore, be £250m ($456m).


Ferrybridge is a 1,995MW coal fired power station in West Yorkshire which was
commissioned in 1966.  In 2002, it was the first power station in the UK to '
co-fire' fuels from renewable sources in order to displace fossil fuels and it
remains the market leader in this field.  Fiddler's Ferry is a 1,989MW coal
fired power station in Cheshire which was commissioned in 1971. Like
Ferrybridge, it co-fires fuels from renewable sources.


Both are flexible, mid-merit stations and their acquisition complements SSE's
existing generation portfolio of 4,300MW of gas-fired stations and almost
1,400MW of renewable capacity.  It means that the capacity of SSE's wholly-owned
power stations and SSE's share of power station joint ventures is now almost
10,000MW, making it the third largest generator of electricity in the UK.


The power stations produced 15.3TWh of electricity during 2003, and operated at
an average load factor of 43%.  Having opted out of the Large Combustion Plant
Directive, they are expected to operate at a load factor of around 40% until
2008 and then for a total of 20,000 hours between 2008 and 2015, after which the
plants are due to be de-commissioned.  Costs associated with this have been
included in SSE's valuation of the power stations. Both plants are expected to
receive an allocation of carbon emissions allowances in respect of the EU
Emissions Trading Scheme.


The acquisition is expected to enhance earnings during the current financial
year.


Ian Marchant, Chief Executive of SSE, said:


'This acquisition is consistent with our strategy of acquiring assets which can
be successfully integrated into our existing businesses at prices which allow
value to be created for shareholders.


It will add to the diversity of our generation portfolio, particularly in the
mid-merit sector, and will help us meet peak demand for electricity.  It will
also allow us to manage further our exposure to changes in commodity prices for
fuel by balancing our existing gas portfolio with a coal portfolio.  This, in
turn, will reinforce our ability to compete successfully for industrial and
commercial electricity customers.


We recognise that there are challenges involved in owning and operating
coal-fired plant at a time when there is a clear move to lower carbon
technologies.  As a responsible company, we will examine all opportunities for
improving the thermal efficiency of the power stations and for reducing the
level of emissions from them.


In the meantime, this clearly represents a good deal for SSE.  It will stand us
in good stead in the electricity market over the next few years.'


Notes:


1.  At 30th June 2004, the book value of the net assets being acquired by SSE
was approximately £185m and, in the year ended 31st December 2003, those assets
incurred a loss before tax and exceptional items of approximately £23m.


2.  An exchange rate of £1 = $1.825 has been used in this announcement.



For further information please contact:

Scottish and Southern Energy plc

Alan Young - Director of Corporate Communications           + 44 (0)870 900 0410

Denis Kerby - Investor and Media Relations Manager          + 44 (0)870 900 0410

Financial Dynamics

Andrew Dowler                                               + 44 (0)20 7831 3113

Lazard                                                       [phone]

Trevor Nash

Matthew Jarman


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