Water inset appointment

Scottish & Southern Energy PLC
03 October 2007



                        SCOTTISH AND SOUTHERN ENERGY PLC

                     APPROVAL OF WATER 'INSET APPOINTMENT'


SSE Water ('SSEW'), a subsidiary of Scottish and Southern Energy plc ('SSE'),
has today been granted an 'inset appointment' that will allow it to supply water
and sewerage services to a housing development near Salisbury. The appointment
will enable SSEW to install, own and operate the water network within the
devlopment.


Inset appointments are allowed when sites are not currently served by an
existing appointed water company, or where the current appointed water company
agrees to the application, or when each of the premises in the inset area uses
at least 50 million litres of water per year. There are currently 11 such
appointments but this is the first one since privatisation 18 years ago where a
new entrant to the water industry will be serving households.


SSE announced in November 2006 its intention to seek such an appointment as part
of a 'multi-utlity' strategy for larger developments and Ofwat announced in May
2007 its proposal to grant the appointment, subject to consultation.


Ian Marchant, Chief Executive of SSE, said: 'This appointment will allow SSE to
provide a more comprehensive multi-utility solution to customers, through being
able to install, own, operate and supply water and sewerage services alongside
SSE's existing Gas and Electricity services. It is an evolutionary step in the
development of our business and also means competition in the water industry in
England and Wales is continuing to make progress.


'Our existing gas and electricity customers expect and receive the best customer
service in the industry. SSE is committed to delivering the same excellence to
our new water customers.'


                      This information is provided by RNS
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