Date 5 December 2006

Hydro action called off after new offer

Staff at nearly 40 electricity shops run by Scottish and Southern Electricity across the North and West of Scotland have accepted a new pay offer by the Company in a consultative ballot, UNISON, the union that represents the staff in the SSE's retail section, announced today.

The staff had previously voted for strike action, because of cuts in conditions and a proposed pay freeze. Following intensive negotiations last week the staff overwhelmingly accepted a revised offer thereby ending the threat of Industrial Action in the lead up to the busiest time of year for the business.

UNISON Regional Organiser, John Fair said: "Administrative staff will receive an increase of 3% for both 2006 and 2007 while shop staff have accepted a new pay scale and changes in Public Holiday and overtime payments from April 2007 in return for a 3% increase this year and compensatory payments for the next two years.

"Both sides of the negotiating team worked hard to find a resolution to the dispute and our members have backed the new proposals following our consultation which ended today. Our members have accepted a degree of security in exchange for major changes to terms and conditions and believe their foresight at this time will provide long term stability for the company.”

ENDS

Notes for editors: The consultative ballot result for on the new offer is as follows: Return - 61% FOR the new offer - 89% AGAINST the new offer - 11% SSE shops are based across North and West Scotland - from Dundee in the East to Campbeltown and Stornoway in the West and up to Kirkwall in the North.

For Further Information Please Contact: John Fair (Regional Officer) 07718 929 023 (m) Chris Bartter (Communications Officer) 0771 558 3729(m)

Index