The company notes that the proposals are designed to ensure that all customers have access to the benefits full competition will bring to the electricity marketplace.

The proposals are complex and cover a number of crucial issues. For this reason ScottishPower will be scrutinising them in detail before making its formal reply to OFFER by the 14 November deadline.

Meanwhile, ScottishPower note that OFFER's proposals take into account:
the continuing fall in the cost of electricity to ScottishPower's domestic customers which is historically below the UK average and currently at its lowest level in 25 years.

• the expenditure on our distribution network which is greater than the industry average because of the exposed nature of much of the rural network.
• the high costs of setting up settlement arrangements required to facilitate the introduction of competition in Scotland. Similar arrangements have been in place in England and Wales for many years.
• The proposals represent a two-year reduction for ScottishPower customers of 5.2 per cent compared with the 3.7 per cent proposed in OFFER's draft document published in August. The reduction will mean a fall of around £15 between 1998 and 2,000 in the average bill of £292.

In addition to its customers, ScottishPower has brought benefits to other stakeholders. Over the last financial year ScottishPower paid £137 million in tax and invested £460 million. (profits before tax were £558 million)

ScottishPower is in pole position to succeed in 1998 and is on schedule to begin testing its systems this month.

Further Information:
Gordon Laidlaw,          ScottishPower Press Office          0141 248 8200