Gas and Electricity Prices

Scottish & Southern Energy PLC
09 November 2005


PRICES FOR ELECTRICITY AND GAS TO INCREASE FROM JANUARY 2006

Scottish and Southern Energy plc ('SSE') will increase its prices for domestic
electricity and gas customers on 1 January 2006. Prices for electricity
customers will rise between 8.9% and 12.0% and the price rise for gas customers
will be 13.6%.

When it last announced an increase in prices, in February 2005, SSE undertook to
hold its electricity prices at their revised level until January 2006 and to
seek to do the same with gas prices. It said that the position in respect of gas
prices was dependent on trends in the wholesale gas market.

Despite high and volatile wholesale energy prices, SSE has concluded that it
will be able to delay a rise in prices for domestic gas customers until 1
January 2006, when its electricity prices will also rise.

Despite the increase, electricity prices for domestic customers will still be
lower in real terms than they were in 1996.

Before the price rise announced in February 2005, SSE previously announced a
change in domestic energy prices in June 2004 and was the only company to
restrict itself to one price increase in that year. Most other major energy
supply companies have already raised their prices at least three times since the
start of 2004.

Earlier this year, SSE introduced its energyplus care tariff and package of
services for its most vulnerable customers, which enables a qualifying family
living in a three-bedroom semi-detached house to reduce their total energy bills
by around 30% compared to typical energy bills. The price rise for energyplus
care customers will be delayed until 1 April 2006.

To encourage the take-up of the tariff, SSE is identifying an initial group of
50,000 of its most vulnerable customers and is writing directly to them to tell
them about energyplus care and related services and to invite them to get in
touch with the company to establish their eligibility for it.

SSE is also introducing a capped price offer for dual fuel customers paying
their bills by direct debit. Under the offer, customers pay a 4% increase on the
January 2006 electricity prices and a 7% increase on the January 2006 gas
prices. Their prices are then capped until February 2008.

Speaking this afternoon at the Energy Action Scotland Annual Conference in
Erskine, SSE's Energy Supply Director Alistair Phillips-Davies said: 'SSE seeks
to adopt a responsible approach to domestic energy prices, protecting customers
from the worst impacts of high and volatile wholesale prices.

'Over the past three years we have demonstrated this and have imposed price
rises more slowly than competitors, an approach which benefits customers.

'The pressure of high wholesale prices cannot, however, be withstood
indefinitely and we have come to the point where these price rises are
unavoidable. With our Careline for priority services customers, our energyplus
care tariff and our flexible approach to payment of bills, we will seek to help
our most vulnerable customers as much as possible over the coming months.

'There remains a fundamental concern about the causes of high and volatile gas
prices and we have sympathy with the concerns expressed by energywatch and
others about the operation of the UK's gas market. It is not noted for its
transparency or liquidity, and until progress is perceived on these issues, the
risk of high and volatile prices remains - with customers feeling the impact
directly with higher energy bills.'

Enquiries to:

Alan Young, Director of Corporate Communications                   0870 900 0410

Sharron Miller McKenzie, Press Officer                             0870 900 0410


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