Corporate Update

Scottish & Southern Energy PLC
21 July 2006


                      SCOTTISH AND SOUTHERN ENERGY PLC

         FOURTH PAYMENT FROM THE ADMINISTRATORS OF TXU EUROPE GROUP PLC


Scottish and Southern Energy plc ('SSE') has received a fourth distribution
payment of £24.5m from the administrators of TXU Europe Group plc in respect of
its agreed claim of £294.2m relating to a 14-year contract originally entered
into in 1997.


This takes SSE's total direct receipt from the administration process to £275.7m
(excluding its share of the separate distributions paid to Barking Power). SSE
expects to receive a further distribution later in 2006.


When it received its first distribution in March 2005, SSE said it expected that
over 75% of its agreed claim would be settled. Following the subsequent
distributions, it now expects that, in total, over 95% of its agreed claim will
be settled.


Gregor Alexander, Finance Director of SSE, said:


'The receipt of this latest distribution is another major milestone in the
process of recovering our claim from the TXU Europe administration. We have
exceeded expectations in terms of what we have been able to recover and we are
now on course to achieve over 95%. This is a very good result.'






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