Disposal

National Grid Transco PLC
01 June 2005


                                                                    1 June 2005


               SALES OF FOUR GAS DISTRIBUTION NETWORKS COMPLETED

National Grid Transco plc today announces that it has completed the sales of
four of its regional gas distribution networks for a total cash consideration of
£5.8 billion.

The North of England distribution network has been sold to a consortium led by
Cheung Kong Infrastructure Holdings Limited and including United Utilities PLC
for a cash consideration of £1.4 billion. The South of England and the Scotland
distribution networks have been sold to a consortium comprising Scottish and
Southern Energy plc, Borealis Infrastructure Management Inc and Ontario
Teacher's Pension Plan for a cash consideration of £3.2 billion. The Wales & the
West distribution network has been sold to a consortium led by the Macquarie
European Infrastructure Fund (a wholesale fund managed by a member of the
Macquarie Bank Group), for a cash consideration of £1.2 billion.

Roger Urwin, Chief Executive of National Grid Transco, said:

'We are delighted to announce completion of our network sales. This very
successfully concludes a long and complex process, led by Steve Holliday and his
team, working closely with Ofgem, the Department of Trade and Industry, and the
new owners. It marks the inauguration of what is in effect a new gas
distribution industry for the UK. We look forward to taking forward our retained
gas distribution business, by far the largest in the UK, and setting new levels
of efficiency to the benefit of customers and shareholders alike.'


CONTACT DETAILS

National Grid Transco:

Investors
Alexandra Lewis                                     [phone](m)
Richard Smith             [phone]       [phone](m)

Media
Clive Hawkins             [phone]       [phone](m)

Citigate Dewe Rogerson
Anthony Carlisle          [phone]       [phone](m)




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