Prices Increase from May 2006

Scottish & Southern Energy PLC
31 March 2006


                       PRICES FOR ELECTRICITY AND GAS TO

                             INCREASE FROM MAY 2006


Scottish and Southern Energy plc ('SSE') will increase its prices for the
majority of its domestic electricity and gas customers on 1 May 2006. Standard
prices for electricity customers will increase by 9.4% on average and standard
prices for gas customers will increase by 16.5% on average. SSE will, however,
hold its electricity and gas prices for these domestic customers at their
revised levels until at least the start of 2007.


This is in line with SSE's policy, which is to seek to protect its customers
from the worst impacts of high and volatile wholesale energy prices and to delay
for as long as possible any increases in prices for gas and electricity. SSE's
decisions to delay price rises have saved a typical* gas and electricity
customer around £100 since the start of 2004, compared with what they would have
paid had SSE increased prices at the same time as the UK's largest energy
supplier.


All other major suppliers of energy have already increased their prices for
domestic customers on at least four occasions during that period - and some have
increased prices five times. This is the fourth time that SSE has increased
domestic electricity and gas prices since the start of 2004. During that time
wholesale electricity prices have risen by 165% and wholesale gas prices have
risen by 180% whereas the cumulative average price increases made by SSE in that
period are 37% and 61% respectively.


For customers who like peace of mind and wish to guard against future
uncertainty in energy prices, SSE is introducing a 'fixed price' tariff for gas
and electricity. While the fixed price is higher than the revised prices which
will take effect on 1 May 2006, it is guaranteed until 2010.


During 2005, SSE introduced its 'energyplus Care' tariff and package of services
for its most vulnerable customers. The package should enable an eligible family*
* living in a three bedroom house to cut their total energy bill by around 30% a
year compared with standard tariffs. The price rise for 'energyplus Care'
customers will be delayed until 1 September 2006, and for customers who use
pre-payment meters it will be delayed until 1 July 2006.


SSE supports the Home Heat Helpline (0800 33 66 99), a free phone number
offering practical energy advice for vulnerable people. The Helpline is staffed
by trained advisers who carry out a preliminary assessment of callers' benefit
entitlement. They are also linked to each energy supplier's priority care team.

In the three years from 2005 to 2008, SSE is implementing schemes to enable
customers to use energy more efficiently which will result in an estimated
benefit to the community of over £70m per annum. As announced in Budget 2006, it
is also bringing forward the funding of an additional 80,000 cavity wall and
loft insulation jobs to the period before 2008.


*Based on a customer on the General Domestic tariff in the Southern area
consuming 3,300 kWh of electricity and 20,500 kWh of gas per annum on standard
quarterly payment terms and including VAT at 5%. Equivalent savings in the
Swalec area are also around £100 and in the Scottish Hydro area around £95.

**An eligible household is one which spends more than 20% or more of its income
on fuel.

Alistair Phillips-Davies, Energy Supply Director of SSE, said: 'The impact of
high wholesale energy prices can only be absorbed for so long and we have
delayed this price increase for as long as possible. In doing so, we have again
imposed price rises more slowly than our competitors, an approach which has been
of real help to our customers over the past two years. We are also making a
commitment to hold electricity and gas prices at their revised levels until at
least the start of 2007, which is in line with our policy of responsible
pricing. This policy clearly helps all customers. We are also ensuring our most
vulnerable customers receive further help though our 'energy plus care' package,
which offers practical help with fuel bills to those who most need it.'



Enquiries to:

Scottish and Southern Energy

Alan Young, Director of Corporate Communications 0870 900 0410

Sharron Miller McKenzie, Corporate Communications 0870 900 0410



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