Gas Distribution Regulation

National Grid PLC
18 December 2007



18 December 2007


                               National Grid plc
         UK Gas Distribution Regulatory Price Controls: Final Proposals


National Grid has today accepted in principle Ofgem's final proposals for the
Gas Distribution Price Control for the five years from 1 April 2008.


Steve Holliday, Chief Executive, said:

'We are pleased that Ofgem have moved in all areas since September, and we
believe that the proposals, although presenting real challenges in meeting the
operating cost assumptions, now offer an acceptable balance of risk and reward.

'As a result of this review, investment in our gas distribution networks in the
UK will be significantly higher than in previous regulatory periods. We are
confident that we can deliver this investment and manage our networks in a safe,
efficient and reliable way, while providing a superior return for investors.

'National Grid operates under 20 main regulatory controls - completing this
review means that we now have 17 of them in place for the coming period and we
believe that this regulatory stability leads to a lower risk profile and greater
visibility for our business.'

National Grid will now work closely with Ofgem on the formal licence
modifications.


Contacts

Investors
David Rees         [phone]     [phone](m)
George Laskaris    [phone]         [phone](m)
Richard Smith      [phone]     [phone](m)
James Waite        [phone]     [phone](m)

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

Brunswick:         Paul Scott              [phone]




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