AGM and IMS Statement

Scottish & Southern Energy PLC
26 July 2007


THURSDAY 26 JULY



                        SCOTTISH AND SOUTHERN ENERGY PLC

          ANNUAL GENERAL MEETING 2007 AND INTERIM MANAGEMENT STATEMENT


Scottish and Southern Energy plc ('SSE') will today inform shareholders at its
Annual General Meeting in Perth that there has been a good start to the current
financial year, which began on 1 April 2007, with continuing growth in energy
customer numbers, a further reduction in customer complaints and progress in
major investments.



Operational update

In the three months to 30 June 2007:



•         the number of electricity, gas and telecoms customers increased by
200,000, to 8.05 million;

•          the number of customer complaints sent to energywatch for resolution
was 196, a fall of 12% compared with the same quarter in 2006;

•          gas-fired power stations achieved 95% of their maximum availability
to generate electricity, excluding planned outages; coal-fired stations achieved
88%;

•          the output from hydro electric schemes (excluding Foyers) and wind
farms was 649GWh, a reduction of 8% compared with the same quarter in 2006;

•          the number of units of electricity distributed was 9,642GWh,a
reduction of 2.5% compared with the same quarter in 2006;

•          the number of Customer Minutes Lost in Scottish Hydro Electric Power
Distribution was 15.5, a reduction of 13% compared with the same quarter in
2006; in Southern Electric Power Distribution it was 15.7, an increase of 10%;

•          the amount of gas transported by Scotia Gas Networks, in which SSE
has a 50% stake, was 29,000GWh, a reduction of 15% compared with the same
quarter 2006; and

•          the major projects in gas storage at Aldbrough and electricity
generation at  Drumderg, Fiddler's Ferry, Ferrybridge, Glendoe and Marchwood are
on course to be commissioned on schedule, starting with the first gas storage
capacity at Aldbrough during 2007/08 through to the gas-fired power station at
Marchwood in 2009/10.



Key developments

Since the publication of its preliminary results on 31 May 2007, SSE has:
submitted an application to Scottish Ministers for consent to build a 205MW wind
farm at Pairc in the Western Isles, the largest such development for which it
has ever sought consent; secured 'support' (subject to conditions) from The
Highland Council for its proposal for an 87MW wind farm at Gordonbush, which
will now be determined by Scottish Ministers; decided to invest £10m in a new
fund (the Sigma Sustainable Energy Fund II) to target sustainable, renewable and
energy efficient technologies; finalised the first of four agreements to support
the development of four new wind farms in China through the purchase of around
two million Carbon Emissions Reduction Certificates; and signed a contract with
the Department for Business, Enterprise and Regulatory Reform to participate in
energy savings trials.



Financial principles

SSE has continued to adhere to the six key financial principles set out on page
10 of its Annual Report 2007.  In particular, it remains on course to deliver
sustained real dividend growth in the years ahead and, specifically, to deliver
at least 4% annual real growth in respect of 2007/08, 2008/09 and 2009/10.  Its
balance sheet remains one of the strongest in the global utility sector.



Since 7 June 2007, SSE has purchased for cancellation 6,038,000 of its ordinary
shares, representing 0.7% of the called-up share capital.  The aggregate
consideration before charges was £88.0m and the weighted average price was
1,457.6 pence per share.  Directors are seeking at today's AGM renewal of their
authority to purchase in the market the company's ordinary shares should
conditions be appropriate.



Board

As announced on 7 March 2007, David Payne, currently Senior Independent
Director, will retire at the conclusion of today's AGM.  He will be succeeded as
Senior Independent Director by Susan Rice CBE, Chief Executive of Lloyds TSB
Scotland, who joined the Board in 2003.  The Board now consists of four
Executive Directors, and five independent non-Executive Directors, in addition
to the Chairman.



Interim Results

SSE will publish its interim results for the six months to 30 September 2007 on
Wednesday 14 November 2007.



Outlook

Sir Robert Smith, Chairman, will tell shareholders at the AGM:



'SSE has made a good start to the new financial year, with continuing growth in
customer numbers, a further reduction in customer complaints and significant
progress in our major investment programme.  This will deliver a
significantly-expanded asset base, which will position SSE very well to deliver
further shareholder value in the years ahead.  We are on course to achieve the
dividend targets which we have set for the three years to March 2010, and make
further progress towards our long-term objective of doubling it from the 55
pence per share which we are recommending to shareholders today.



Next year will see the completion of SSE's first decade as one of the UK's
leading energy companies and the company is full of ideas, plans and
opportunities for our second decade.  Our priority must continue to be the
delivery of significant value for shareholders and excellence for customers from
continuous improvement across all of our activities and by exploiting
opportunities for investment.'








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