SSE Press Release 20 January 2009

Iberdrola, S.A.  and Scottish and Southern Energy Plc have today 19 January 2009 announced their intention to form a joint venture to enable them to participate in the UK’s nuclear new build programme.

In addition to power generation from renewable energy, nuclear technology is important for the security of electricity supply and the targeted reductions of CO2 emissions.

Pedro Azagra, Iberdrola’s Director of Development, said: “Iberdrola is committed to the UK market, and welcomes the UK government’s plans to develop new nuclear power plants for low-carbon energy supply.”

Alistair Phillips-Davies SSE’s Energy Supply Director, said: “We accept that one more tranche of nuclear power stations is necessary for the UK’s energy policy goals from around the end of the next decade.  We also recognise that we will have to continue to be able to source power generated from nuclear stations if we are to be able to meet our customers’ energy needs in the long term.  Our decision to participate in this venture is consistent with both of these points, and our long-standing willingness to work with other parties in ths area, and complements our core investment strategy in renewables.”

While each partner brings high quality relationships with equipment suppliers, the joint venture will not be bound to any single vendor for new nuclear development, and will be able to make use of the best available technology for each element of the nuclear new build programme.