Scottish Water, a publicly owned organisation, replaced Scotland's three former water authorities East, West and North of Scotland Water on 1 April 2002. The combined resources of the three former water authorities will help ensure that all householders and businesses across Scotland enjoy improved standards of service and drinking water quality.

Previously ScottishPower supplied electricity to both East and West of Scotland Water.

Willie MacDiarmid, Managing Director of ScottishPower's Energy Retail Business said: "We are delighted to have secured such a prestigious contract which brings new business to the company and real cost efficiencies to Scottish Water. By working together we have enabled Scottish Water to clearly demonstrate how it will deliver major cost savings through operating as a more efficient single organisation

ScottishPower is one of the UK's leading exponents of green energy - and this deal demonstrates how we can deliver efficiencies to our customers while also helping them move towards greater environmental responsibility."

Ewan Robertson, General Manager Procurement with Scottish Water said:

"As the fourth largest water provider in the UK, Scottish Water takes a proactive approach to protecting the environment wherever possible. To do this we need to invest nearly £2billion between 2002-06 to provide all our customers with good quality, safe tap water and to clean up beaches and coasts. If we can do this using green energy then we are achieving a win-win situation.

"This initiative demonstrates our strong commitment to the environment with a guarantee that all renewable energy provides value for money and meets all our customers needs."

This energy contract demonstrates how two of Scotland's largest companies can work together to achieve both cost and environmental savings and cements ScottishPower's position as the one of the leading suppliers in the new renewable energy market.

Further Information:

Simon McMillan 0141 566 4875
Colin McSeveny 0141 636 4515

08 May 2002