Domestic Energy Prices

Scottish & Southern Energy PLC
20 March 2008



                       SCOTTISH AND SOUTHERN ENERGY PLC

                   DOMESTIC ENERGY PRICES FROM 1ST APRIL 2008



Scottish and Southern Energy plc ('SSE') will increase its prices for domestic
electricity and gas customers on 1st April 2008.  Prices for electricity
customers will increase by 14.2% (average) and prices for gas customers will
increase by 15.8%.  Even after these increases are implemented, SSE's prices for
gas and electricity will remain the lowest in the UK*.

The company last announced a change in electricity and gas prices in February
2007.  Forward annual wholesale prices for electricity and gas have been rising
since March 2007 and are now around 90% higher for electricity and 100%** higher
for gas than they were then.



Alistair Phillips-Davies, Energy Supply Director of SSE, said:

'Energy supply in the UK is changing dramatically, with companies having to
operate in volatile markets, which reflect depletion of North Sea oil and gas
fields, soaring global demand for all types of energy and over $100 a barrel for
oil.  Wholesale energy prices have been stubbornly high.

'These pressures are compounded by the rising transmission, distribution and
environmental costs which suppliers have to meet.  You cannot resist
indefinitely the impact of these issues and I am sorry that all of this has
culminated in the price rises we are announcing today.'

SSE's responsible pricing policy is that it will seek to be the last, or one of
the last, of the major suppliers to increase prices if it has to and the first,
or one of the first, to reduce prices if it can.  In line with this, it will be
the last of the leading energy suppliers to implement a price increase - doing
so more than 10 weeks after British Gas put up prices on 18 January and more
than 12 weeks after Npower put up prices on 5 January.  Forward annual wholesale
prices for electricity and gas are now 7% and 13% higher respectively than they
were when British Gas introduced its price increase.

These are generally the coldest weeks of the year, during which the average
household typically uses around 40% of its annual gas consumption and 30% of its
annual electricity consumption.  By delaying price increases until after the
start of British Summer Time, SSE's 'dual fuel' customers will have paid an
average of £44 less for their electricity and gas in the first three months of
this year than customers of British Gas.

The consistent implementation of SSE's responsible pricing policy means that its
'dual fuel' customers have paid an average of £433 less for their electricity
and gas over the past four years than have customers of British Gas.  This
policy is explicitly designed to help minimise the impact of fuel bills on
vulnerable and 'hard to reach' customers.  Moreover, SSE offers 'tailor-made'
payment arrangements to customers who may be having difficulties paying for the
electricity and gas they use.

SSE's energyplus care tariff provides customers with a 20% reduction from their
energy bill compared with standard tariffs and a package of other services to
improve the energy efficiency of their homes.



Alistair Phillips-Davies added:

'I can assure customers of one thing: our commitment to responsible pricing will
not change.  We will still aim to be the first, or one of the first, suppliers
to cut energy prices if we can and the last, or one of the last, to increase
them again if we have to.

'In the meantime, we offer a variety of services to help meet the needs of
vulnerable customers and we will continue to work with them so they can manage
their energy bills.  We are keen that a more coherent and robust approach is
adopted to make a real and lasting impact on the issues affecting vulnerable
customers.

'For that reason, we have today published seven principles for a code of
practice for helping vulnerable customers which we believe should be adopted
throughout the energy supply industry.'

SSE believes that the seven principles for an energy supply industry Code of
Practice for helping vulnerable customers should be:


Real issue

Price is the real issue.  Energy suppliers charge different prices at different
times of year, so those who charge most for energy should contribute most to
help vulnerable customers.


Real contribution

Suppliers should make an appropriate level of contribution to help tackle fuel
poverty.  This should recognise the size of their business and their respective
impact on household energy bills.


Real help

'Social' is not a label.  Any 'social' tariff offered by an energy supplier must
be the lowest-cost tariff that it makes available to customers, so they are
getting real help.


Real difference

The market is competitive.  Any 'social' tariff offered by an energy supplier
must be lower than the UK average direct debit tariff for 'dual fuel' so that it
is making a real difference.


Real flexibility

Vulnerable customers are different people with different needs.  This requires
real flexibility and suppliers should offer different ways of helping them: '
social' tariffs; charitable donations; donations to trusts; reducing surcharges
for pre-payment meters; bespoke customer services; community programmes.


Real partnership

Working in partnership to find the most vulnerable customers is crucial.
Government must work with suppliers, agencies and other stakeholders so that the
most vulnerable customers are identified and helped.


Real accountability

Everyone benefits from transparency.  Suppliers' activities to help vulnerable
customers should be the subject of tough and independent monitoring and analysis
so they can demonstrate real accountability for their actions.


NOTES

* Based on the average 'dual fuel' standard tariff bill paying by quarterly or
direct debit averaged across the UK and comparing all six major UK suppliers,
and based on energywatch's average domestic consumptions (3,300 kWh electricity
per annum and 20,500 kWh gas per annum).  Includes VAT at 5%.  SSE's Standard
General Domestic Tariff for 'dual fuel' domestic customers will now be £1,006
per annum.  This compares with £1,055 for British Gas and £1,099 for Scottish
Power.  Based also on gas and electricity prices at 1st April 2008.


** Based on a comparison of the average forward annual wholesale prices for
electricity and gas in February 2007 with the average in February 2008.  Source:
Heren Energy Ltd.


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