ScottishPower has agreed, after due consideration, to accept Ofgem's Final
Proposals of 4th December 2006 in respect of Electricity Transmission Price
Controls, which apply to its Scottish Transmission business. In communicating
this decision to Ofgem, ScottishPower has expressed concern that the new price
controls have the potential under certain circumstances to give rise to asset
deterioration and longer term security of supply issues.

The new price controls will run for five years from 1st April 2007 and have been
accepted subject to their being correctly reflected in licence modifications.

Contact:

Investor Relations
Peter Durman, Investor Relations Director
0141 566 4874

Media Relations
Colin McSeveny, Media Relations Director
0141 636 4515