British Energy (BE), Scottish Power (SP) and Scottish and Southern Energy (SSE) have agreed revised terms to the Nuclear Energy Agreement (NEA).

The revised terms are subject to regulatory approval but legal proceedings have been suspended.

SP and SSE will pay BE the equivalent of a premium of around £1.65/MWh on purchases for the period between NETA go-live and expected BETTA go-live. Most of this payment has already been made. Under the revised terms, SP and SSE will now purchase electricity from BE under arrangements much more closely linked to market prices and terms for base load energy in England and Wales.

The amended NEA will continue in operation until the introduction of the British Electricity Transmission and Trading Arrangements (BETTA) or, if earlier, 1 April 2006. Beyond that date, SP and SSE have an option for follow-on contracts up to 2011 at reduced volumes.

The settlement is satisfactory to all sides and the companies believe it represents a fair and reasonable basis on which to resolve the dispute between them.

All three companies welcome the agreement, in that it removes uncertainty and provides continuity and stability to the customer and supplier relationship over the longer term.

Further Information:

ScottishPower Colin McSeveny         Media Enquiries       0141 636 4515
Andrew Jamieson                            Investor Relations     0141 636 4527

Cautionary Statement Regarding Forward Looking Statements

Certain statements contained herein are forward-looking statements that are subject to risks and uncertainties. These include statements concerning our expectations and other statements that are not historical facts. In particular, the statements regarding our expected payments for the period between NETA go-live and expected BETTA go-live; and our price expectations for the current financial year; are subject to various uncertainties or changes depending upon a number of factors, including, but not limited to changes in the wholesale price for energy; our ability, and that of our suppliers, to effectively and efficiently operate generation facilities; unexpected generation outages; unfavorable weather conditions that reduce demand for power; adverse economic conditions that decrease electricity consumption; and unexpected regulatory or legislative changes or developments affecting rates, generation costs and environmental standards. ScottishPower undertakes no obligation to revise these forward-looking statements to reflect events or circumstances after the date hereof. We desire to qualify these statements for the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995.