Final Results - Replacement

National Grid Group PLC
22 May 2001

This announcement replaces the Final Results announcement released at 07:00
today under RNS No. 9834D, which contained formatting errors.

The full corrected version is shown below. All material details remain
unchanged.




NATIONAL GRID GROUP plc

Preliminary results for the year ended 31 March 2001

  * Strong financial and operational performance
  * Step change in scale of electricity business, set to increase further
    with Niagara Mohawk. Flexibility to increase cash element of Niagara Mohawk
    consideration to at least 50%
  * Profile of group earnings transformed; quality of earnings improved
  * Significant potential for further value creation from telecoms portfolio
  * Aim to increase dividends 5 per cent per annum in real terms for the next
    five years


Financial highlights
                                   Year ended 31      Year ended 31      Change
                                   March 2001         March 2000

Turnover                           £3.8bn             £1.6bn             up 135%
Operating profit *                 £731.9m            £546.5m            up 34%
Electricity                        £851.3m            £590.4m            up 44%
Telecoms                           £(119.4)m          £(43.9)m
Pre-tax profit *                   £481.3m            £481.6m            Level
Profit after tax and minority      £390.4m            £358.5m            up 9%
interests *
Earnings per share *               26.5p              24.3p              up 9%
Dividend per share                 15.08p             13.94p             up 8.2%
Interest cover excluding           3.6 times          26.8 times
exchangeable bonds *

*     Before exceptional items and goodwill amortisation

Commenting, James Ross, Chairman, said:

'National Grid has delivered another strong financial and operational
performance and has taken further major strategic steps in utilising its
capital and core skills to transform the scale, profile and prospects of the
Group's business.

'In the UK, we continue to maintain high operational standards, to offset the
impact of UK regulation with efficiency gains and to generate strong cash
flows. However, it is clear that there is limited scope for growing UK
transmission profits. This is why the Group embarked upon its expansion
strategy, which exploits our core skills of electricity and telecoms
infrastructure construction and management and deploys our capital to maximum
effect.

'A year ago, less than 3 per cent of National Grid's electricity operating
profits came from outside the UK. Now it is 36 per cent, almost all from the
US, where we are demonstrating our ability to secure higher returns and
substantially greater regulatory certainty. This proportion is set to increase
to some 60 per cent when our acquisition of Niagara Mohawk completes. We will
then be the leading US electricity business focused exclusively on transmission
and distribution. In parallel, our portfolio of telecoms interests is on track
to deliver good long-term returns.

'National Grid is financially strong and powerfully cash generative. Overall,
we expect continued growth this year along with improved quality of earnings
through diversity and regulatory stability. As a result, the Board has had no
hesitation in confirming its target to raise dividends by 5 per cent in real
terms each year for a further five years.'

Roger Urwin, Group Chief Executive, said:

'The growth and performance of our US electricity distribution and transmission
business has more than offset the expected reduction in our regulated UK
profits and the increased losses in our telecoms development businesses. As a
result, operating profit before exceptional US integration costs and goodwill
amortisation, grew 34 per cent to £731.9 million.

'Allowing for the higher interest expense, we held pre-tax profit before
exceptional items and goodwill amortisation level at £481.3 million and
increased earnings per share on the same basis by 9 per cent. We also had
exceptional profits of over £470 million relating to the reduction in our
holding in Energis.

'Our telecoms interests have significant potential for value creation. Energis
continues to perform to all expectations; the rate of start up losses of
Intelig in Brazil has been reduced; Silica launched services in Argentina last
week; and Energis Polska launches next month.

'Looking ahead, we have achieved agreement with the UK regulator for a five
year period. We intend to reduce controllable costs by a further 20 per cent
over the price control period. In the US, we are moving towards our target of
10.5 per cent return on investment. We are targeting the completion of our
acquisition of Niagara Mohawk by the end of this year and are confident we will
achieve the significant synergy benefits. Our financial results give us the
flexibility to increase the cash element of the consideration for Niagara
Mohawk from one third to at least 50 per cent.

'Looking further ahead in the US, we see opportunities for more efficient
management of transmission networks both within and beyond the Northeast
region.

'I am confident that the strength of National Grid's management team will
continue to create significant shareholder value both from our electricity
businesses and from our telecom interests'.

Analysts' presentation

City Presentation Centre, 4 Chiswell Street, London EC1Y 4UP
9:00 am (UK time) today

Live telephone coverage of analyst presentation
UK: [phone]
replay [phone] (pin 117518£)
US: [phone]
replay [phone] (pin 113600£)
Replay is available until Friday 25 May

Teleconference with Roger Urwin and Stephen Box
15.00 BST (10.00 EST & 07.00 PST),
UK: [phone] (quote National Grid and Roger Urwin)
replay [phone] (access code 646 422)
US: [phone] (quote National Grid and Roger Urwin)
replay + 1 303 804 1855 (access code 102 8310)
Replay is available until Tuesday 29 May
Photographs are available from midday on www.newscast.co.uk


Contact

National Grid                                 [phone]
Roger Urwin
Stephen Box
Jill Sherratt (investors)                     mobile: [phone]
Susan Stevens (press)
Clive Hawkins (press)                         mobile: [phone]

Citigate Dewe Rogerson                        [phone]
Anthony Carlisle                              mobile: [phone]
Sue Pemberton

GROUP RESULTS

National Grid Group turnover increased by £2.2 billion to £3.8 billion, largely
as a result of the first full year's contribution from National Grid USA.

Total operating profit for the year, before exceptional US integration costs
and goodwill amortisation, increased 34 per cent to £731.9 million. National
Grid USA contributed £293.6 million which more than offset the higher losses in
the telecoms development businesses and the expected lower profits in the UK.

Net interest increased £185.7 million to £250.6 million, mainly reflecting the
acquisitions of New England Electric System (NEES) in March 2000 and Eastern
Utilities Associates (EUA) in April 2000. Year end net debt was £3.9 billion,
up from £2.7 billion last year. This increase was primarily due to the
acquisition of EUA (£0.6 billion including net debt in EUA), exchange rate
movements (£0.2 billion) and investments made during the year in telecoms joint
ventures (£0.3 billion). Interest cover, excluding exceptional items, goodwill
amortisation and the impact of exchangeable bonds, was 3.6 times.

Profit before tax for the year, excluding exceptional items and goodwill
amortisation, was level at £481.3 million (£481.6 million last year).

The tax charge for the year, excluding exceptional items and the release of £20
million of tax provisions in respect of prior year tax computations,
represented an effective tax rate of 26 per cent, unchanged from the previous
year. In accordance with Financial Reporting Standard (FRS) 19, we will change
our accounting policy for deferred taxation in 2001/02. We will be providing
for deferred tax in full and do not intend to adopt the discounting option
permitted by the Standard. Including deferred tax, we expect the effective tax
rate to be 26 per cent for 2001/02.

Profit after tax and minority interests, excluding exceptional items and
goodwill amortisation, was £390.4 million, up 8.9 per cent from £358.5 million
last year.

The results include post-tax exceptional profits of £453.1 million net
comprising:

  * profits of £242.9 million, before and after tax, arising from reductions
    in the Group's interest in Energis, primarily as a result of a placing of
    shares by Energis in September 2000 and the acquisition by Energis of a
    majority stake in Ision in January 2001
  * tax credits of £229.5 million, arising from the realisation of capital
    losses for tax purposes as a result of Group restructurings
  * net profits of £20.1 million, before and after tax, on the disposal of
    four of our Market Services businesses
  * US integration costs of £39.4 million (£45.3 million before tax).

Earnings per share fell 25.9 pence to 52.1 pence, reflecting a large
Energis-related exceptional profit in the previous year. Excluding exceptional
items and goodwill amortisation, earnings per share increased 2.2 pence to 26.5
pence. If telecoms start-up losses are also excluded, earnings per share were
up 7.6 pence to 35.9 pence, an increase of 27 per cent.

Final dividend

The Board is recommending a final dividend of 9.03 pence per ordinary share to
be paid on 15 August to shareholders on the register on 1 June. This brings the
total dividend for the year to 15.08 pence per share, an 8.2 per cent increase
compared with last year, in line with our target to increase dividends by 5 per
cent real. This dividend per share is covered 1.8 times (2000: 1.7 times) by
earnings per share excluding exceptional items and goodwill amortisation.

REVIEW OF OPERATIONS

ELECTRICITY NETWORKS

UK Transmission

Over the four year price control period ended on 31 March 2001, we have
achieved our target reduction in controllable costs of an average of 6 per cent
per year in real terms. During the year, we reduced controllable operating
costs by 3 per cent in real terms, partially offsetting lower RPI-X income and
delivering operating profit of £486.3 million (1999/2000: £523.1 million).

For the seventh successive year, we have beaten our target for uplift costs
covered by the Transmission Services Scheme (TSS). Over the seven years, we
achieved total profits from these arrangements of £122.4 million. This year's
profit of £16.8 million was down from last year's level of £27.3 million, which
benefited from favourable generator bidding patterns.

Capital expenditure was higher as expected at £361.2 million, including
capitalised interest, compared with £286.5 million in the previous year, mainly
as a result of new connection projects and system reinforcements in London and
North Yorkshire.

In October, we agreed a new Transmission Owner (TO) price control which
provides a stable framework for five years, a year longer than the previous
control period. We are confident that we can cut TO controllable costs by 20
per cent over the period of the price control, exceeding Ofgem's efficiency
targets. We have also accepted a separate five-year price control for the
internal costs associated with our System Operator activity. Both price
controls took effect on 1 April 2001.

We have also agreed a Balancing Services Incentive Scheme (BSIS), which was
introduced simultaneously with the New Electricity Trading Arrangements (NETA)
on 27 March 2001. The BSIS replaces the Transmission Services Scheme and brings
the incentive arrangements into line with the new market structure.

US Electricity

National Grid USA performed strongly during the year. Operating profits before
goodwill amortisation and exceptional integration costs amounted to £293.6
million (including joint ventures), an increase of around £44 million over the
pro forma operating profit of the continuing operations of NEES and EUA for the
year ended 31 December 1999. This increase was mainly driven by integration and
other cost savings (£22 million for the year) and exchange movements (£20
million increase). Increased revenues from volume growth offset the initial
rate reductions under our 20 year regulatory settlements.

Capital expenditure for the year was £154.2 million, a similar amount to that
spent last year by NEES and EUA.

NEES and EUA were fully integrated on 1 May 2000 and we achieved our target
integration savings, delivering a 10 per cent annualised reduction in the
combined controllable cost base. Exceptional integration costs were £45.3
million before tax and included £41.8 million related to EUA and £2.6 million
related to the integration planning work with Niagara Mohawk.

The 20-year rate plans in Massachusetts and Rhode Island provide incentives to
cut costs for the benefit of customers and shareholders. We are on target to
reduce controllable distribution costs by 20 per cent by 2004 in addition to
the synergy savings mentioned above. The controllable costs will be reduced by
introducing efficiencies throughout the operation including projects such as
automatic meter reading and a geographic information system.

Our distribution operations filed for rate increases to cover the rise in
wholesale electricity prices, which they are able to do without reopening rates
for delivery charges, and we have increased tariffs to pass these higher
commodity costs through to customers. However, there was a lag between
incurring the costs and agreeing new tariffs and we had an under-recovery of £
124 million at 31 March 2001. This will be recovered, with interest, through
the higher tariffs over the next two years and is accounted for as a regulatory
asset with an impact on cash flow but not on profits.

National Grid USA was earnings enhancing after goodwill amortisation, but
before exceptional integration costs, in the year ended 31 March 2001, a year
earlier than originally expected. The pre-tax nominal return on our investment
was 9.3 per cent in the year to 31 March 2001, well on the way towards our
target of 10.5 per cent for the year to March 2004. These acquisitions have
substantially altered the National Grid Group with 34 per cent of Group
electricity operating profits before exceptional integration costs and goodwill
amortisation now coming from the US, where we can earn higher returns than in
the UK.

We are identifying transmission opportunities in the US and, in January 2001,
we filed a joint proposal for a New England Regional Transmission Organisation
(RTO) with the Federal Energy Regulatory Commission (FERC). We are awaiting a
response. The FERC is also considering a proposal for a separate RTO covering
New York. Following the acquisition of Niagara Mohawk, we will have the most
extensive transmission operation in the Northeast and expect to play a
significant role in these developments.

We are also exploring opportunities for independent, for-profit transmission
systems with other organisations. On 15 May 2001, we filed for the FERC's
confirmation that National Grid is not a Market Participant with respect to the
region served by the Alliance RTO, comprising networks in 11 states with a peak
load of over 100GW. We are confident that this is the case and that we are
therefore an eligible candidate as Managing Member of the Alliance RTO.

Proposed acquisition of Niagara Mohawk

In September, we announced the proposed acquisition for approximately £2
billion ($3 billion) of Niagara Mohawk, an electricity and gas delivery company
in New York State with 1.5 million electric and 0.5 million gas customers.

The acquisition provides substantial upside potential and completion is
targeted by the end of the calendar year. We currently expect to be able to
increase the cash component of the consideration to at least 50 per cent. We
expect the acquisition to enhance earnings per share, after the amortisation of
goodwill but before exceptional integration costs, in the first full financial
year after completion and to enhance Group cash flow substantially from
completion. The combined US operation will contribute some 60 per cent of the
Group's operating profit following completion.

We expect integration synergies to produce annual cost savings of approximately
10 per cent of the combined controllable cost base of National Grid USA and
Niagara Mohawk. This amounts to approximately £63 million ($90 million) per
year and will be achieved within four years of completion, with at least half
in the first full financial year following completion. There is potential to
improve Niagara Mohawk's operating performance further, bringing it nearer that
projected for National Grid USA.

The acquisition is subject to a number of conditions, including regulatory and
other consents and approvals. We have already obtained five approvals and have
filed for State approvals from New York and Vermont and federal approvals from
the FERC and Securities and Exchange Commission. Our filing with the New York
Public Service Commission (NYPSC), made in January 2001, included our proposals
for a long term rate plan which would provide incentives for us to improve
efficiency and make significant reductions in delivery rates to customers while
retaining a share of benefits for shareholders.

The sale of Niagara Mohawk's nuclear facilities has been agreed with
Constellation Nuclear and agreement has been reached with the NYPSC staff about
the rate treatment of the sale. The sale is on track to close well before
completion of the acquisition.

Until September 2001, when Niagara Mohawk will be able to pass commodity costs
through to customers under its existing regulatory settlement, substantially
all of its exposure to increasing commodity costs is hedged. Under our proposed
rate plan we will continue to pass through commodity costs to customers, but
would offset some of the impact through the reductions in delivery rates which
we have offered.

Other electricity operations

Operating profit from UK Interconnectors was down £3.8 million to £42.8
million. This reduction reflects the lower level of capacity payments under the
French interconnector contract, which were exceptionally high last year.

Up to 31 March 2001, our income from the French interconnector came exclusively
from a long term contract with EdF. This has been replaced by a series of
three-yearly, annual and daily auctions of interconnector capacity. Whilst
experience from the daily auctions is limited, initial indications are that
this may result in a reduction in income to National Grid in the year to 31
March 2002.

Our other electricity operations performed well, with a modest first
contribution from the new UK / Isle of Man interconnector. Our overall share of
operating profits from electricity joint ventures rose £4.8 million to £19.2
million.


TELECOMS NETWORKS

Energis and Energis Polska

Our net cash investment in Energis was £0.5 billion up to the date of its
flotation and we have extracted cash of £2.2 billion since then. Our remaining
stake in Energis, of 32.8 per cent, was valued at £1.7 billion at yesterday's
closing market price. The IRR on our investment is some 70 per cent.

Energis has reported another strong performance, with turnover up 70 per cent
from £494.0 million to £840.4 million and EBITDA up 53 per cent from £92.6
million to £141.7 million. Our share of its operating profit for the year,
before amortisation of goodwill, increased by £3.8 million to £5.1 million.
Energis' expansion in its Continental European businesses during the year
included the acquisition of Ision in Germany.

We have a joint venture with Energis in Poland, Energis Polska, which will
launch its network, linking major cities and providing business-focused
value-added services, on 26 June. We had invested £26 million in the joint
venture by 31 March. Our share of Energis Polska's operating loss was £1.0
million.

Intelig

Intelig, our Brazilian joint venture (50 per cent holding) has reduced start-up
losses, with a £21.4 million improvement in our share, between the first and
second halves of the year. Our share of Intelig's operating loss was £118.0
million for the year to 31 March 2001.

We invested £215 million during the year, bringing our total investment to £345
million. Interim vendor financing has been agreed with equipment suppliers and
Intelig drew £42 million from the facility in March 2001. Negotiations to
obtain long term vendor financing are at an advanced stage. On completion,
these facilities will enable short term shareholder loans to be repaid and are
expected substantially to meet Intelig's funding requirements for the next 12
months.

All three shareholders have demonstrated their commitment to the successful
development of Intelig through contributions to the management team.

The reduction in losses was achieved by a combination of actions taken by
Intelig. These included rebalancing peak and off peak tariffs in December 2000;
reducing advertising expenditure in line with Intelig's business focus; the
development of Intelig's network to reduce its interconnect and leased line
costs; and a reduction in the provision for bad debts of 30 per cent. This
resulted largely from continuous improvements in billing and collection systems
and the introduction of co-billing arrangements with two of the three major
regional telecoms operators. We expect further improvements when the remaining
regional operator implements co-billing in the near future, as they have been
directed to do by the Brazilian regulator.

Following the launch of four of its six major data products between July and
November 2000, Intelig has progressively rolled out new products and services
and will complete the major elements of the data products portfolio by June
2001. Sales of data services are growing rapidly and customer wins include a
range of blue chip companies.

We expect our share of Intelig's operating losses for the year to March 2002 to
reduce significantly, benefiting fully from the actions taken to reduce losses
and increase sales of data services.


Other telecoms networks

The construction of the backbone network of Silica Network, our 50 per cent
joint venture in Argentina and Chile, is well advanced. Silica went into full
commercial operation, on the first section linking Buenos Aires and Cordoba, on
17 May 2001, just a year after the creation of the business. Santiago, Chile
will be connected by July 2001. Our investment to 31 March 2001 was £36 million
and in May 2001, Silica closed a limited-recourse vendor finance facility. Our
share of Silica Network's operating loss was £1.6 million.

Manquehue net, our joint venture in Santiago with Williams, Metrogas and other
investors, is well established as a competitive local exchange carrier
providing local telecommunications services. It targets high end residential
customers and the business and internet markets. Our total investment amounts
to £54 million and a £40 million bond issue was completed by Manquehue recently
to assist in funding the development of the business. Our share of Manquehue
net's operating loss before goodwill amortisation was £0.7 million.

NEESCom, National Grid USA's dark fibre leasing operation in Massachusetts, New
Hampshire and Rhode Island, has installed 20,000 miles of optical fibre in the
last year, bringing the total to 140,000 fibre miles. It is currently expanding
its network into New York State providing a link to Albany. Capital expenditure
during the year was approximately £30 million, bringing the total since its
inception to approximately £60 million. The present value of long-term sales
contracts agreed during the year amounted to around £40 million bringing the
total to around £120 million. NEESCom made an operating profit before goodwill
amortisation of £2.9 million in the year ended 31 March 2001.

We have formed GridCom to take advantage of the infrastructure opportunities in
the UK telecoms market. It installs overhead and underground fibre for Energis
and other telecoms operators; manages and maintains fibre optic networks; and
acquires, designs and constructs mobile phone aerial installations on
electricity transmission towers. It is well positioned to benefit from the
infrastructure requirements of third generation mobile networks.


THE BOARD

Following the planned retirement of David Jones, Roger Urwin has become Group
Chief Executive. Steven Holliday, who joined on 30 March 2001, succeeding
Roger, brings twenty years of international experience in the energy industry
to the Board.

On completion of the Niagara Mohawk acquisition, William E. Davis, who is
currently Chairman and Chief Executive Officer of Niagara Mohawk, will become
an Executive Director of National Grid for a period of 2 years. At the same
time, Dr Bonnie G. Hill will be appointed as a Non-Executive Director. Bonnie
is currently a Non-Executive Director of Niagara Mohawk and brings specific
understanding of Niagara Mohawk and broad experience of US business and
consumer issues.


OUTLOOK

We are transforming the scale, quality and potential of our electricity
earnings and, at the same time, developing a balanced portfolio of telecoms
interests with potential for significant value creation.

In the UK, the five-year regulatory settlement provides a stable framework for
the transmission business. We are improving efficiency to exceed the targets
set in the new price control without compromising network performance. The
business continues to generate significant levels of cash and we expect free
cash flow to amount to £1.9 billion after capital expenditure but before
interest and tax over the five years of this price control period.

In our existing US businesses, we will take advantage of the incentives
provided by our rate plans in New England to improve performance and to achieve
our return on investment target of 10.5 per cent by 2004. This is significantly
higher than the return we can expect to earn in the UK. The acquisition of
Niagara Mohawk represents a further step change. We are focused on achieving a
regulatory settlement in New York State that can deliver value to customers and
shareholders. Our target is to complete the acquisition by the end of the
calendar year. We also expect to exploit our expertise and strong reputation
gained in the UK as opportunities arise from the changes in transmission
regulation.

All of our telecoms ventures will be expanding services this year. We expect a
reduction in our share of their operating losses and a lower cash investment
requirement.

We announced a dividend policy in November reflecting our confidence in the
Group's future financial strength and prospects. Our aim is to deliver
sustained real dividend growth, and to increase dividends per share by 5 per
cent in real terms in each of the next five years.



NATIONAL GRID GROUP plc
GROUP PROFIT AND LOSS ACCOUNT
Year ended 31 March 2001

                                                                 2001      2000
                                                      Notes        £m        £m
Group turnover - continuing operations                 2(a)  3,799.7   1,614.7
Operating costs                                             (3,084.1) (1,042.6)
                                                           ---------- ----------
Operating profit of Group undertakings                 2(b)    715.6     572.1
Share of joint ventures' and associate's operating     2(b)   (103.5)    (33.5)
loss
                                                           ---------- ----------
Operating profit
- Before exceptional integration costs and goodwill   2(b)     731.9     546.5
  amortisation
- Exceptional integration costs                        3(a)    (45.3)        -
- Goodwill amortisation                                        (74.5)     (7.9)
                                                           ---------- ----------
Total operating profit - continuing operations         2(b)    612.1     538.6
Exceptional profit relating to partial disposal of     3(b)    242.9   1,027.3
Energis
Profit on disposal of businesses                       3(c)     20.1         -
Net interest                                            4     (250.6)    (64.9)
                                                           ---------- ----------
Profit on ordinary activities before taxation                  624.5   1,501.0
- Taxation (excluding exceptional items)                5      (85.8)   (123.1)
- Taxation (exceptional items)                          5      235.4    (229.5)
                                                           ---------- ----------
Taxation (total)                                        5      149.6    (352.6)
                                                           ---------- ----------
Profit on ordinary activities after taxation                   774.1   1,148.4
Minority interests                                              (5.1)        -
                                                            ---------- ---------
Profit for the year                                            769.0   1,148.4
Dividends                                               6     (223.0)   (205.5)
                                                           ---------- ----------
Retained profit                                                546.0     942.9
                                                               ======    ======
Earnings per ordinary share
Basic, on profit for the year                           7       52.1p     78.0p
Basic, on adjusted profit for the year*                 7       26.5p     24.3p
Diluted, on profit for the year                         7       49.5p     73.4p
Diluted, on adjusted profit for the year*               7       25.8p     23.8p
* Adjusted profit excludes exceptional items and
  goodwill amortisation
Dividends per ordinary share                            6      15.08p    13.94p

NATIONAL GRID GROUP plc
GROUP BALANCE SHEET
At 31 March 2001
                                                            2001           2000
                                                              £m             £m
Fixed assets
Intangible assets - goodwill                            1,186.2          844.7
Tangible assets                                         5,617.3        4,938.3
Investments                                               960.3          519.0
                                                      ----------     ----------
                                                        7,763.8        6,302.0
                                                      ----------     ----------
Current assets
Stocks                                                     34.1           29.3
Debtors (due within one year)                             880.4          490.1
Debtors (due after one year)                            1,016.5          798.3
Assets held for exchange                                   16.6           16.6
Business held for resale                                      -          118.9
Cash and deposits                                         271.2        1,011.6
                                                      ----------     ----------
                                                        2,218.8        2,464.8
Creditors (due within one year)                        (2,213.7)      (1,861.1)
                                                      ----------     ----------
Net current assets                                          5.1          603.7
                                                      ----------     ----------
Total assets less current liabilities                   7,768.9        6,905.7
Creditors (due after more than one year)               (3,755.5)      (3,500.2)
Provisions for liabilities and charges                   (495.8)        (461.4)
                                                      ----------     ----------
Net assets employed                                     3,517.6        2,944.1
                                                          ======         ======
Capital and reserves
Called up share capital                                   174.7          174.7
Share premium account                                     276.9          274.7
Profit and loss account                                 3,024.2        2,459.6
                                                      ----------     ----------
Equity shareholders' funds                              3,475.8        2,909.0
Minority interests                                         41.8           35.1
                                                      ----------     ----------
                                                        3,517.6        2,944.1
                                                          ======         ======
Net debt                                                3,918.2        2,663.6
Gearing                                                     111%            90%


NATIONAL GRID GROUP plc
SUMMARISED GROUP CASH FLOW STATEMENT
Year ended 31 March 2001
                                                            2001           2000
                                                  Notes       £m             £m
Net cash inflow from operating activities         8(a)    810.6          682.0
Dividends from joint ventures                              20.3            4.5
Net cash outflow for returns on investments and
servicing of finance                                     (306.9)         (64.7)
Corporate tax paid                                       (137.2)        (274.3)
Net cash outflow for capital expenditure                 (457.6)        (279.2)
Net cash outflow for acquisitions and disposals   8(b)   (582.2)      (1,236.7)
Equity dividends paid                                    (212.5)        (197.6)
                                                      ----------     ----------
Net cash outflow before management of liquid             (865.5)      (1,366.0)
resources and financing
Net cash inflow from the management of liquid             775.2          618.8
resources
Financing
Issue of ordinary shares                                    7.0            5.5
Repurchase of ordinary shares                                 -           (1.1)
- New borrowings                                        1,015.4        1,029.3
- Borrowings repaid                                      (934.0)        (260.1)
                                                      ----------     ----------
Increase in borrowings                                     81.4          769.2
                                                      ----------     ----------
Net cash inflow from financing                             88.4          773.6
                                                      ----------     ----------
Movement in cash and overdrafts                            (1.9)          26.4
                                                          ======         ======

NATIONAL GRID GROUP plc
GROUP STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
Year ended 31 March 2001
                                                              2001         2000
                                                                £m           £m
Profit for the year                                         769.0      1,148.4
Exchange adjustments                                        (12.0)         3.1
Tax on exchange adjustments                                  31.9            -
                                                        ----------   ----------
Total recognised gains and losses relating to the year      788.9      1,151.5
                                                            ======       ======

RECONCILIATION OF MOVEMENT IN EQUITY SHAREHOLDERS' FUNDS
Year ended 31 March 2001
                                                            2001           2000
                                                              £m             £m
Profit for the year                                       769.0        1,148.4
Dividends                                                (223.0)        (205.5)
                                                      ----------     ----------
                                                          546.0          942.9
Issue of ordinary shares                                    0.9           11.6
Repurchase of ordinary shares                                 -           (1.1)
Exchange adjustments                                      (12.0)           3.1
Tax on exchange adjustments                                31.9              -
                                                      ----------     ----------
Net increase in equity shareholders' funds                566.8          956.5
Equity shareholders' funds at start of year             2,909.0        1,952.5
                                                      ----------     ----------
Equity shareholders' funds at end of year               3,475.8        2,909.0
                                                          ======         ======


MORE TO FOLLOW