Corporate update

Scottish & Southern Energy PLC
30 January 2006



                     INVESTMENT IN SUSTAINABLE ENERGY FUND

Scottish and Southern Energy plc ('SSE') is to invest up to £2.4m in a fund to
support renewable energy projects and technologies being developed by companies
in the East of Scotland.

The fund will be managed by a subsidiary of Sigma Technology Group, an
AIM-listed fund management company that also owns Sigma Technology Investments
Limited, an investor in the fund. The European Regional Development Fund, Fife
Enterprise and a group of private investors are also investing in the fund,
which will have an initial value of up to £6.0m. The ten-year fund will have an
investment period of three years.

SSE expects that its investment will yield business development opportunities in
technologies which have the potential to help the UK meet its targets for
reducing emissions of carbon dioxide while being capable of generating
significant amounts of electricity. It will gain access to a wide range of ideas
and initiatives of direct relevance to the energy sector, which may be currently
distant from market but which are worthy of support to establish whether they
are capable of technical and commercial success.

SSE will also have the opportunity to earn a return from investments where the
companies prove to be successful, and will be able to establish direct
commercial relationships with investee companies.

Ian Marchant, Chief Executive of SSE, said:

'SSE is involved in a wide range of leading-edge projects with the objective of
meeting demand for electricity while reducing emissions of carbon dioxide. I
hope that this new fund will give us opportunities to work with a variety of
companies to help projects which are technically and commercially viable to
become successful.

'The fund will complement our other investments in low and zero carbon
generation technologies and in demand-reduction technologies such as micro
generation. I am optimistic that it will identify a good number of projects with
significant potential which we should support.'

Enquiries to:

Scottish and Southern Energy
Alan Young, Director of Corporate Communications             0870 900 0410
Jennifer McGregor, Public Affairs Manager                    0870 900 0410




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