Acquisition

Scottish & Southern Energy PLC
01 June 2005


SSE COMPLETES GAS DISTRIBUTION NETWORK INVESTMENT

Scotia Gas Networks plc ('SGN'), the company in which Scottish and Southern
Energy plc ('SSE') has an equity interest of 50%, has today completed the
acquisition of the Scotland and the South of England gas distribution networks
from National Grid Transco plc ('Transco').


The total value of the acquisitions is £3,162m. Of this, £2,082m is being funded
by non-recourse borrowings and £1,080m is being funded by equity and shareholder
loans. This means that, in return for a cash consideration of £540m, SSE will
receive 50% of the distributable earnings from the networks.

In total, the two networks - now named Scotland Gas Networks and Southern Gas
Networks - comprise 73,000km of gas mains, delivering gas to around 5.6m
industrial, commercial and domestic customers. Under an agreement with SGN, SSE
is providing certain corporate and management services for the two networks.

John Morea, previously Director of Distribution for SSE, has been appointed
Chief Operating Officer of SGN and Surinder Toor, previously Managing Director
of American Electric Power's European business, has been appointed Chief
Financial Officer.

Ian Marchant, Chief Executive of SSE, said: 'I am delighted that this
acquisition has been successfully completed. Our interest in gas networks makes
SSE the second largest distributor of energy in the UK. As with electricity, our
priority will be to ensure that SGN distributes gas to its customers safely,
reliably and efficiently.'


Enquries to:

Alan Young, Director of Corporate Communications          0870 900 0410
Julian Reeves, Communications Manager                     0870 900 0410


                      This information is provided by RNS
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