Stabilisation Notice

Scottish & Southern Energy PLC
29 September 2004


Not for distribution in or into the United States


29 September 2004


Stabilisation Notice


Scottish and Southern Energy plc (the 'Company')


Issue of £275 million Senior Unsecured 3.75 per cent Convertible Bonds due 2009
(the 'Bonds') with an over-allotment option of up to £25 million of Bonds.

Merrill Lynch International ('MLI') notifies you that it is the stabilising
manager and may conduct stabilising activities in relation to the Company's
ordinary shares (the 'Shares') and the Bonds. We confirm the following:

 1. Stabilising activities may be undertaken in:

    (i)      the Bonds referred to above, and

    (ii)     the Shares (ISIN: GB0007908733) referred to above;


 2. The stabilising manager is Merrill Lynch International (contact: John Millar
    - Telephone: [phone]);

 3. The stabilisation period may commence at 11.30am on 29 September 2004 and
    end on 29 October 2004 inclusive (30 days after pricing of the Bonds);

 4. Stabilising activities in relation to the Bonds and the Shares may occur on
    the London Stock Exchange plc;

 5. The issue price of the Bonds is 100 per cent of the principal amount of the
    Bonds as announced on 29 September 2004;


For further information please contact:

Scottish and Southern Energy                Tel: [phone]

Alan Young - Director of Corporate Communications
Denis Kerby - Investor and Media Relations Manager



Merrill Lynch International                    Tel: [phone]

Simon Fraser
Julian Kozerski
Andrew Osborne


STABILISATION/FSA

In the United Kingdom, this announcement is directed exclusively at persons who
fall within article 19 (5) or 49 (2) of the Financial Services and Markets Act
2000 (Financial Promotion) Order 2001 (all such persons together being referred
to as 'relevant persons'), and must not be acted on or relied upon by persons
other than relevant persons. Any invitation or inducement to engage in any
investment activity included within this announcement is available only to
relevant persons and will be engaged in only with relevant persons.

This announcement is not for distribution, directly or indirectly in or into the
United States or to any US person (as defined in Regulation S under the US
Securities Act of 1933, as amended ('Regulation S')).  These materials are not
an offer of securities for sale into the United States or elsewhere. The
securities may not be offered or sold in the United States or to, or for the
account or benefit of, US persons unless they are registered or exempt from
registration. There will be no public offer of securities in the United States.




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