Prices to Fall

Scottish & Southern Energy PLC
31 January 2007



                     PRICES FOR ELECTRICITY AND GAS TO FALL


Scottish and Southern Energy plc ('SSE'), currently the UK's cheapest gas and
dual fuel (gas plus electricity)*, has written to its seven million domestic
customers to confirm that it will cut gas and electricity prices within the next
few months. It will be the first such reduction for six years.

SSE, which supplies energy as Southern Electric, SWALEC, Scottish Hydro Electric
and Atlantic Electric and Gas, has made the decision in light of the sustained
fall in wholesale prices which has occurred since it last announced an increase
in prices, in September 2006.


During the three years of rising wholesale energy prices, SSE passed on to its
customers much less than the full extent of the increases and it delayed any
price rises for as long as possible. As a result, its customers have paid an
average of £320* less for their gas and electricity in the last three years than
have customers of British Gas. Customers of SSE are still paying around 14%*
less for their combined gas and electricity than are customers of British Gas.


Earlier this month, SSE announced plans to increase its early payment discount
for people paying their bills quarterly to 4.3%. It is one of just two energy
suppliers to reward its customers in this way.


Alistair Phillips-Davies, Energy Supply Director of SSE, said:


'Since last September, we have made clear our intention to cut gas and
electricity prices if there was a sustained fall in wholesale prices which would
allow us to do so, and I am very pleased that we have now been able to confirm
this.


'We are now monitoring costs and evaluating how we will be able to pass savings
on to customers. In the meantime, our customers know they paid on average around
£320* less for their gas and electricity than customers of British Gas did
during the period of rising prices. Our policy of fair pricing will continue.


Future trends in the wholesale price of any commodity are always difficult to
predict, and gas and electricity are no exception, but I hope that we will see a
sustained downward trend in the prices paid by our customers.'


* Based on an average over the 14 supply areas for a dual fuel customer
consuming 20,500kWh of gas per annum, and 3,300kWh of electricity per annum and
paying quarterly. Prices include VAT.


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