Interim Results

National Grid Group PLC
21 November 2000



INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2000

               Strong operational and financial performance
               Further major step taken in US strategy
               New five year dividend policy announced

Financial highlights
                                                
  profit after tax and minorities excluding  up 17.5% to
  exceptionals and goodwill amortisation        £218.7m

  additional exceptional profits after tax   £228.6m net
                                                
  basic earnings per share excluding         
  exceptionals and goodwill amortisation     up 17.5% to
                                                14.8p
                                                
  interim dividend - 5% real increase        up 8.2% to
                                                6.05p per
                                                share

Dividend policy

  aim to increase dividends per share by 5% real in each of
  the next five years

Electricity - UK

  new price control gives stable framework for 5 years from
  April 2001

  confident of achieving Ofgem's demanding efficiency
  targets

Electricity - USA

  return on investment for first half 9.3% (up from 8.3% at
  announcement of acquisitions and on track for 10.5% target)

  completed acquisitions immediately earnings enhancing
  after goodwill amortisation - one year ahead of initial
  expectations

  Niagara Mohawk acquisition a further major step in US -
  doubles size of US business

Telecoms

   strong performance from Energis (34.6% holding)

  Brazil start-up operating losses of £69.7 million -
  within September forecast


Commenting, James Ross, Chairman, said:

'National Grid continues to perform well and deliver on its
strategy.

'In the US, our acquisition of Niagara Mohawk is a further
major step forward, creating the potential for significant
synergies and taking us into the top 10 of US electricity
businesses.  Upon completion towards the end of 2001, more
than half of our operating profits will come from the
Northeast US, a region already demonstrating its ability to
provide long term regulatory stability and significantly
higher returns than in the UK.

'The new price control settlement in the UK, which comes into
effect next April, will provide a stable framework for the
next five years.  We are confident of achieving Ofgem's
demanding efficiency targets.

'Our telecoms strategy is to use our infrastructure skills
across a range of telecoms start-ups.  We own 34.6% of
Energis, which once again has reported excellent half year
results, and we have a joint venture with Energis in Poland.
We have three ventures in Latin America of which Intelig, in
Brazil, is the largest.  As announced in September, Intelig's
start-up losses are higher than expected.  We and our
partners, Sprint and France Telecom, with Intelig's
management, are taking actions to curtail these and to
reinforce Intelig's focus on the fast-growing business market.

'The Board is raising the interim dividend by 8.2% (5% real).
Our confidence in the Group's future financial strength and in
the prospects for growth and greater diversity of earnings has
increased.  We are committed to delivering sustained real
dividend growth.  Consequently the Board today announces its
aim to increase dividends per share by 5% real in each of the
next five years.'



Analysts' presentation

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

Live coverage of the presentation
    UK:   [phone]
    USA:  [phone]

Telephone replay of the presentation (available for 5 days)
    UK:   [phone]  pin  114026 hash
    USA:  [phone]       pin  73883

Website replay of the presentation from around 4:00 pm (UK
time) today on www.nationalgrid.com (available for 6 months)

Teleconference at 3.00 pm UK time (10.00 am Eastern Time and
7.00 am Pacific Time)
     UK:  [phone]
     USA: [phone]

Replay of the teleconference (available for 5 days)
     UK:  [phone]   pin  630372
     USA: [phone]        pin  858297

Photographs are available at www.newscast.co.uk.

Contact

National Grid
David Jones
Stephen Box
Investors UK: Jill Sherratt      [phone]
                          mobile:[phone]
              Diane Boddy
          US: Karen Shih         [phone]
Press:        Susan Stevens      [phone]
              Sam Cohen   mobile:[phone]

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



GROUP RESULTS

The electricity businesses performed well with a particularly
strong first contribution from the US while start up losses in
our Brazilian telecoms joint venture were higher than
originally expected.  Total operating profit for the period,
before exceptional US integration costs and goodwill
amortisation, was up 27.6 per cent to £358.6 million.

Net interest increased £68.4 million to £98.7 million,
reflecting the increase in net debt attributable to the
acquisitions of New England Electric System (NEES) and Eastern
Utilities Associates (EUA), which were completed in March and
April 2000 respectively.  The impact of these acquisitions was
partially offset by the proceeds from the sale of Energis
shares in February 2000 and a £17.4 million benefit from the
closing out of interest rate swaps.  Interest cover, excluding
exceptional integration costs, goodwill amortisation and the
impact of exchangeable bonds, was 4.7 times.

Profit before tax for the period, excluding exceptional items
and goodwill amortisation, increased to £259.9 million from
£250.7 million for the same period last year.

The tax charge for the period, excluding exceptional items, of
£38.5 million is net of the release of £20 million of tax
provisions in respect of prior year tax computations.  The
underlying tax charge for the period is based on the estimated
effective tax rate for the year ending 31 March 2001 of 26 per
cent.

Profit after tax and minority interests, excluding exceptional
items and goodwill amortisation, was £218.7 million, up from
£186.1 million for the same period last year.

The results include post-tax exceptional profits of £228.6
million net, comprising:
  
  A profit of £132.1 million, before and after tax, arising
  from reductions in the Group's interest in Energis, primarily
  as a result of the placing of 77.7 million shares by Energis
  in September;
  
  US acquisition integration costs of £43.5 million (£46.8
  million before tax); and

  A tax credit of £140 million, arising from the
  realisation of a capital loss for tax purposes as a result of
  a Group restructuring.

Basic earnings per share rose 124 per cent to 28.0 pence.
Excluding exceptional items and goodwill amortisation, basic
earnings per share increased 17.5 per cent to 14.8 pence.  If
telecoms start-up losses are also excluded, basic earnings per
share increased 48.9 per cent to 20.1 pence.

Interim dividend

The Board has declared an interim dividend of 6.05 pence per
share to be paid on 15 January 2001 to shareholders on the
register at 1 December 2000.   This is an increase of 8.2 per
cent (5 per cent real) over the interim dividend last year.



REVIEW OF ACTIVITIES

ELECTRICITY

National Grid Company

UK Transmission

As expected, operating profit from the UK Transmission
business was down £11.1 million to £242.8 million mainly as a
result of lower RPI-x income.  This was partially offset by a
further 3% real reduction in controllable operating costs and
a £2.7 million increase in operating profit from the
Transmission Services Scheme. With the delay of the New
Electricity Trading Arrangements (NETA), this scheme will now
run until the end of the financial year.  However, we do not
expect to benefit from a repeat of the exceptional generator
bidding behaviour seen last winter.

We have accepted Ofgem's final proposals for the next price
control period in respect of the Transmission Owner activities
(TO).  The new control, which takes effect on 1 April 2001,
provides a stable framework for five years, a year longer than
the current price control period.  We are confident that we
can achieve Ofgem's demanding efficiency targets.

Discussions with Ofgem on the price control and incentive
arrangements for the System Operator activity (SO) are
continuing and will be introduced on the implementation of
NETA, which is scheduled for 27 March 2001.

Market services

Our market services businesses are no longer core to our
strategy and we are announcing today the sale of our energy
settlements and information services company, ESIS, and EPFAL
(Energy Pool Funds Administration Limited) to Logica for a net
consideration of £38 million.  We are in discussions with
other parties interested in acquiring our metering businesses.

National Grid USA

Existing businesses

National Grid USA was formed on the acquisition of NEES in
March 2000 and incorporates EUA, the acquisition of which was
completed on 19 April 2000 at a cost of £414.0 million.

The transmission and distribution operations of NEES and EUA
were successfully integrated on 1 May 2000.  The 20-year rate
settlements in Massachusetts and Rhode Island, which provide
long term incentives for us to improve efficiency for the
benefit of customers and shareholders, came into effect on
that date.  The exceptional costs of integrating NEES and EUA
were £46.8 million.  Integration savings amount to £27 million
a year, 10 per cent of the combined controllable cost base.

National Grid USA is performing ahead of expectations.  Total
operating profit, before exceptional integration costs and
goodwill amortisation, was £148.6 million.  This included
£73.9 million from Distribution, reflecting higher than
expected volume growth of 3.6 per cent over the same period
last year on a weather corrected basis.  It also included
£20.5 million from Transmission, £38.9 million from Stranded
costs recovery and generation, £11.0 million from the
US/Canada interconnector and £1.5 million from Telecoms.
     
The acquisitions of NEES and EUA were earnings enhancing after
goodwill amortisation, but before exceptional integration
costs, in the six months ended 30 September. This is a year
earlier than originally expected.  The nominal pre-tax return
on our investment (ROI) for the six months ended 30 September
was an annualised 9.3 per cent.

Acquisition of Niagara Mohawk

In September, we announced the proposed acquisition of Niagara
Mohawk, a focused electricity and gas delivery business in New
York State, valuing the equity at approximately £2 billion and
the enterprise value at approximately £6 billion.

The acquisition of Niagara Mohawk provides substantial upside
potential.  We expect integration synergies to produce cost
savings of approximately 10 per cent per annum of the combined
controllable cost base of National Grid USA and Niagara
Mohawk, approximately £63 million per year, within four years
of completion, with at least half in the first full financial
year.  In addition, there is potential to improve operational
performance and bring Niagara Mohawk's efficiency nearer to
that projected for National Grid USA.

The acquisition is expected to enhance earnings per share
after the amortisation of goodwill in the first full financial
year after completion and will substantially enhance our cash
flow from completion.

The acquisition of Niagara Mohawk will more than double the
size of our US distribution operations (with over 3 million
customers) and makes our transmission network the most
extensive in the New England and New York Power Pools.  We
expect the combined US operation to contribute more than half
of the Group's operating profit following completion.

The acquisition is subject to a number of conditions,
including regulatory and other consents and approvals in the
US, the sale of Niagara Mohawk's nuclear facilities or other
satisfactory arrangements being reached and the approval of
the shareholders of both National Grid and Niagara Mohawk.
The shareholder meetings are expected to take place in January
2001 and, following regulatory approvals, completion of the
acquisition is expected by late 2001.

Other electricity operations

Operating profit from Interconnectors, excluding the US/Canada
interconnector, was down £2.4 million to £22.1 million. This
reflects the exceptionally high level of capacity payments
under the French contracts last year.

The UK/Isle of Man interconnector was commissioned in October
2000.  We expect to commence construction of Basslink, the
interconnector between Tasmania and the Australian mainland,
around the end of 2001.  In addition, the seabed survey for
the proposed UK/Norway interconnector has been successfully
completed.  Construction will commence in 2002 subject to
consents and satisfactory commercial arrangements.

Our electricity businesses in Argentina and Zambia both
reported increased profits.



TELECOMS

Energis

Energis, of which we now own 34.6 per cent, continues to
perform strongly with turnover up 81 per cent to £368.0
million, and EBITDA up 71 per cent to £65.5 million.  Our
share of its operating profit for the period increased by £3.3
million to £2.5 million before the amortisation of goodwill.

The Government has proposed new rules which will allow relief
in respect of capital gains tax on disposals of corporate
holdings of over 20 per cent if the proceeds are reinvested
within one year prior to, and three years after the disposal.
The rules are expected to become effective from 1 April 2001
and will apply to our holding in Energis, which was valued at
£2.8 billion at yesterday's closing market price.

Telecoms joint ventures

We have a range of joint venture telecoms interests leveraging
our infrastructure skills in designing, building and
maintaining networks.  Our partners bring product development,
sales and marketing and telecoms operational skills. We have
invested a total of £389.5 million to 30 September in these
joint ventures.

Intelig

Intelig is our Brazilian joint venture with Sprint and France
Telecom.  Our share of operating losses for the six months
ended 30 September was £69.7 million.  This was higher than
originally expected but within the level forecast in our
September trading statement.

There have been a number of contributing factors, including a
higher than expected proportion of low-margin, off-peak voice
traffic, much of which has been uneconomic to bill.  Actions
being taken by Intelig management include the roll out of the
network which will reduce interconnect and leased line costs,
the roll out of data services, the establishment of co-billing
arrangements with regional telecoms operators and the
introduction of new tariffs.  As a result we expect this to be
the peak year of operating losses.

Sprint is again participating in Intelig, after nine months
absence enforced by the Brazilian regulator consequential upon
its proposed merger with Worldcom.  As a result Intelig is
once again pursuing debt financing from equipment suppliers.

Manquehue net

Manquehue net (formerly Telefonica Manquehue) is our joint
venture with Williams and MetroGas in Santiago, Chile.  It
provides local telecommunications services to targeted
customer groups, including the business and internet markets.

Silica Networks

Silica Networks (formerly Southern Cone Communications) is our
joint venture in Argentina and Chile with Manquehue net and
Williams.  It is making good progress.  The licences have now
been received, construction of the 2,500 mile state-of-the-art
network continues and roll out of its managed bandwidth
services is expected to commence in March 2001.

Poland

We have a joint venture in Poland with Energis which has
received its data licence.  It is developing a state-of-the-
art, broadband network connecting major cities across Poland
and interconnecting with Energis' network in Germany.  An
internet Datacentre is being constructed in Warsaw, which will
be integrated with Energis' pan-European IP and voice backbone
network.  Services will be launched in Spring 2001.

NEESCom

NEESCom is a natural extension to National Grid USA's
business.  It installs and leases dark fibre and now has
150,000 fibre miles mainly on our electricity network in New
England, presently expanding into New York State.  The present
value of new sales contracts over the last six months is £27
million, bringing the total value of sales contracts to £115
million.



DIVIDEND POLICY

Looking ahead, the profile of the Group will be very
different.  Our confidence in the Group's future financial
strength and in the prospects for growth and greater diversity
of earnings has increased.  We are committed to delivering
sustained real dividend growth.  Consequently the Board today
announces its aim to increase dividends per share by 5% real
in each of the next five years.





NATIONAL GRID GROUP plc
GROUP PROFIT AND LOSS ACCOUNT
Six months ended 30 September 2000

                                   Six months ended  Year ended
                                     30 September     31 March
                                    2000      1999      2000
                            Notes    £m       £m        £m

Group turnover - continuing
 operations                   3   1,792.8     741.7     1,614.7
Operating costs - continuing    
 operations                      (1,456.6)   (462.6)   (1,042.6)
                                 ---------  ---------  --------
Operating profit of Group     3     336.2     279.1       572.1
 undertakings
Share of joint ventures' 
 and associate's operating
 loss                               (59.1)     (0.6)      (33.5)
                                 ---------  ---------  ---------
Total operating profit
- Before exceptional             ---------  ---------  ---------
  integration costs
  and goodwill amortisation         358.6     281.0       546.5
- Exceptional integration
  costs                      4(a)   (46.8)      -           - 
- Goodwill amortisation             (34.7)     (2.5)       (7.9)
                                 ---------  ---------  ---------
                              3     277.1     278.5       538.6
Exceptional profit relating
 to partial disposals
 of Energis                  4(b)   132.1       -       1,027.3
Net interest                  5     (98.7)    (30.3)      (64.9)
                                 ---------  --------- ---------
Profit on ordinary 
 activities before taxation         310.5     248.2     1,501.0
                                 ---------  ---------  ---------
Taxation - excluding 
exceptional items                   (38.5)    (64.6)     (123.1)
 - exceptional items                143.3       -        (229.5)
                                 ---------  ---------  ---------
                              6     104.8     (64.6)     (352.6)
                                 ---------  ---------  ---------
Profit on ordinary 
  activities after taxation         415.3     183.6     1,148.4
Minority interests                   (2.7)      -           -
                                 ---------  ---------  ---------
Profit for the period               412.6     183.6     1,148.4
Dividends                     7     (89.5)    (82.5)     (205.5)
                                 ---------  ---------  ---------
Retained profit                     323.1     101.1       942.9
                                 =========  =========  =========

Earnings per ordinary share
- Basic, on profit for the
  period                      8      28.0p     12.5p       78.0p
- Basic, on adjusted profit
  for the period*             8      14.8p     12.6p       24.3p
- Diluted, on profit for
  the period                  8      26.5p     12.2p       73.4p
- Diluted, on adjusted
  profit for the period*      8      14.3p     12.3p       23.8p
*Adjusted profit excludes exceptional items and
    goodwill amortisation

Dividends per ordinary share  7       6.05p     5.59p      13.94p




NATIONAL GRID GROUP plc
GROUP BALANCE SHEET
At 30 September 2000

                                   At 30 September   At 31 March
                                    2000      1999      2000
                                      £m       £m        £m

Fixed assets
Intangible assets - goodwill       1,140.6      14.0     844.7
Tangible assets                    5,467.9   3,156.5   4,938.3
Investments                          890.6     260.7     519.0
                                  ---------  --------  -------
                                   7,499.1   3,431.2   6,302.0
                                  ---------  --------  -------

Current assets
Stocks                                35.6      14.5      29.3
Debtors (due within one year)        781.4     142.6     490.1
Debtors (due after one year)         882.5      50.6     798.3
Assets held for exchange              16.6      16.6      16.6
Businesses held for resale           133.7       -       118.9
Cash and deposits                    649.7   1,519.8   1,011.6
                                  ---------  --------  -------
                                   2,499.5   1,744.1   2,464.8
Creditors (due within one year)   (2,138.5) (1,436.5) (1,861.1)
                                  ---------  -------- ---------

Net current assets                   361.0     307.6     603.7
                                  ---------  -------- ---------
Total assets less current 
 liabilities                       7,860.1   3,738.8   6,905.7
Creditors (due after more than
 one year)                        (3,975.0) (1,635.8) (3,500.2)
Provisions for liabilities
 and charges                        (597.0)    (44.7)   (461.4)
                                  ---------  --------  --------
Net assets employed                3,288.1   2,058.3   2,944.1
                                  =========  ========  ========


Capital and reserves
Called up share capital              174.7     174.5     174.7
Share premium account                275.0     266.7     274.7
Profit and loss account            2,783.7   1,616.3   2,459.6
                                  ---------  -------   -------
Shareholders' funds                3,233.4   2,057.5   2,909.0
Minority interests                    54.7       0.8      35.1
                                  ---------  -------   -------
                                   3,288.1   2,058.3   2,944.1
                                  =========  =======   =======

Net debt                           3,766.1     722.7   2,663.6

Gearing                             115%        35%       90%




NATIONAL GRID GROUP plc
SUMMARISED GROUP CASH FLOW STATEMENT
Six months ended 30 September 2000

                                   Six months ended  Year ended
                                     30 September     31 March
                                    2000      1999      2000
                               Note   £m       £m        £m

Net cash inflow from operating
 activities                     9    343.4    309.1      682.0

Dividends from joint ventures          8.7      0.3        4.5

Net cash outflow for returns
 on investments and servicing
 of finance                         (125.0)   (35.7)     (64.7)

Corporate tax paid                   (58.4)    (0.6)    (274.3)

Net cash outflow for capital
 expenditure                        (198.6)  (135.0)    (279.2)

Net cash outflow for acquisitions
  and disposals                     (648.0)   (42.1)  (1,236.7)

Equity dividends paid               (123.2)  (115.1)    (197.6)
                                  ---------  -------- ----------

Net cash outflow before 
  management of liquid resources
  and financing                     (801.1)   (19.1)  (1,366.0)

Net cash inflow from the management
  of liquid resources                372.3      5.9      618.8
                                 ---------  ---------  ---------
Issue of ordinary shares               2.9      4.4        5.5
Repurchase of ordinary shares          -        -         (1.1)

                                 ---------  ---------  ---------
New borrowings                     1,841.2     82.4    1,029.3
Borrowings repaid                 (1,425.6)   (57.3)    (260.1)
                                 ---------  ---------  ---------
Increase in borrowings               415.6     25.1      769.2
                                 ---------  ---------  ---------
Net cash inflow from financing       418.5     29.5      773.6
                                  ---------  ---------  --------
Movement in cash and overdrafts      (10.3)    16.3       26.4
                                  =========  =========  ========




NATIONAL GRID GROUP plc
GROUP STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
Six months ended 30 September 2000

                                   Six months ended  Year ended
                                     30 September     31 March
                                    2000      1999      2000
                                      £m       £m        £m

Profit for the period                412.6    183.6    1,148.4
Exchange adjustments                   1.0     (4.8)       3.1
                                   --------  --------  --------
Total recognised gains and
 losses relating to the period       413.6    178.8    1,151.5
                                   ========  ========  ========



RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS
Six months ended 30 September 2000

                                   Six months ended  Year ended
                                     30 September     31 March
                                    2000      1999      2000
                                      £m       £m        £m

Profit for the period                412.6    183.6    1,148.4
Dividends                            (89.5)   (82.5)    (205.5)
                                   --------- --------  --------
                                     323.1    101.1      942.9
Issue of ordinary shares               0.3      8.7       11.6
Repurchase of ordinary shares          -        -         (1.1)
Exchange adjustments                   1.0     (4.8)       3.1
                                   --------- --------  --------
Net increase in shareholders' 
  funds                              324.4    105.0      956.5
Shareholders' funds at start
 of period                         2,909.0  1,952.5    1,952.5
                                   -------  ---------  --------
Shareholders' funds at end 
 of period                         3,233.4  2,057.5    2,909.0
                                   =======  ========   ========




NATIONAL GRID GROUP plc
NOTES

1.   Basis of preparation

The  financial information contained in this announcement  has
been prepared on the basis of the accounting policies set  out
in  the Annual Report and Accounts for the year ended 31 March
2000 and does not constitute statutory accounts as defined  in
Section   240  of  the  Companies  Act  1985.   The  financial
information  in  respect of the year ended 31 March  2000  has
been derived from the statutory accounts for the year ended 31
March  2000,  which have been delivered to  the  Registrar  of
Companies.   The auditors' report on those statutory  accounts
was  unqualified and did not contain a statement under Section
237(2)  or  (3)  of  the Companies Act  1985.   The  financial
information  in respect of the six months ended  30  September
2000  is  unaudited but has been reviewed by the auditors  and
their report is set out on page 20.
This interim results announcement was approved by the Board of
Directors on 20 November 2000.

2. Acquisition of Eastern Utilities Associates (EUA)

The  acquisition  of  EUA (completed on 19  April  2000)  cost
£414.0m  and  the  net assets acquired had a provisional  fair
value  of £213.7m, resulting in goodwill of £200.3m which  has
been  capitalised and is being amortised over 20  years.   The
operations of EUA and New England Electric System (NEES)  were
successfully  integrated on 1 May 2000, as  a  consequence  of
which  it  is not possible to provide an indication  of  EUA's
contribution to the Group's results for the period.

3. Segmental analysis
                                   Six months ended  Year ended
                                     30 September     31 March
                                    2000      1999      2000
a) Turnover:                          £m       £m        £m
Transmission - UK                    643.2    650.0   1,319.7
             - USA                   100.2      -         3.4
Distribution - USA                   662.3      -        25.8
Stranded costs recovery and
  generation - USA                   314.6      -         6.1
Interconnectors - UK                  42.4     44.8      86.6
                - USA                 23.5      -         1.3
Telecommunications - USA               4.3      -         0.2
Other activities - UK(i)             154.5     63.5     207.0
                 - USA                11.5      1.3       2.4
Sales between businesses            (163.7)   (17.9)    (37.8)
                                   --------  -------- --------
Group turnover - continuing
 operations                        1,792.8    741.7   1,614.7
                                   =======  =======   =======
Europe                               819.1    740.4   1,576.1
North America                        973.7      1.3      38.6
                                   -------  --------  -------
                                   1,792.8    741.7   1,614.7
                                   =======  =======   =======
(i)  Other activities - UK turnover primarily comprises market
services,  including gas trading activities,  and  contracting
activities.
The  transmission  - UK segment now includes  the  results  of
operations  of  Ancillary Services, previously reported  as  a
separate segment.


                                   Six months ended  Year ended
                                     30 September     31 March
                                    2000      1999      2000
b) Operating profit:                  £m       £m        £m
Transmission - UK                    242.8    253.9     523.1
             - USA                    20.5      -         1.3
Distribution - USA                    73.9      -         1.7
Stranded costs recovery and
 generation - USA                     33.6      -         0.2
Interconnectors - UK                  22.5     24.5      46.6
                - USA                 11.0      -         0.6
                - Other               (0.4)     -        (0.9)
Telecommunications - USA               1.5      -         0.1
Other activities - UK                  7.0      4.0       7.5
                 - USA                (0.9)    (2.6)     (5.5)
Exceptional integration 
  costs - USA                        (46.8)     -         -
Goodwill amortisation - USA          (28.5)    (0.7)     (2.6)
                                    --------  ------    ------
Group undertakings                   336.2    279.1     572.1
                                    --------  ------    ------ 
Telecommunications - Energis           2.5     (0.8)      1.3
                   - Intelig         (69.7)    (5.9)    (44.1)
                   - Other            (0.6)     -         -
Generation - USA                       5.3      -         0.2
Other electricity                      9.6      7.9      14.4
Goodwill amortisation                 (6.2)    (1.8)     (5.3)
                                    --------  ------    ------
Joint ventures and associate         (59.1)    (0.6)    (33.5)
                                    --------  ------    ------
Total operating profit               277.1    278.5     538.6
                                    ========  ======    ======
Europe                               267.6    280.0     572.3
North America                         69.6(ii) (3.3)     (4.0)
Latin America                        (62.9)    (0.4)    (33.7)
Africa                                 2.8      2.2       4.0
                                    --------  ------    ------
                                     277.1    278.5     538.6
                                    ========  ======    ======
Electricity                          424.9    287.7     589.2
Telecommunications                   (66.3)    (6.7)    (42.7)
                                    --------  ------    ------
Total operating profit - before
 exceptional integration costs
 and goodwill amortisation           358.6    281.0     546.5
                                    =======   ======    ======

(ii)  £144.9m  before  exceptional  integration  costs  and
  goodwill amortisation.

Stranded costs recovery
Under   settlement  agreements  reached  as  part  of  industry
restructuring National Grid USA is allowed to recover its costs
(net  of  sales proceeds) and, where applicable,  a  return  on
those  costs, associated with its ongoing efforts to  exit  the
generation business.


4.   Exceptional items

a)   Exceptional integration costs

Exceptional  integration costs of £46.8m  (£43.5m  after  tax)
principally  comprise early retirement costs  arising  on  the
integration  of  the  operations of  the  former  New  England
Electric  System  and Eastern Utilities Associates  (both  now
comprising, and renamed, National Grid USA).
     
b)   Exceptional profit relating to partial disposals of
Energis

The  exceptional profit of £132.1m (£132.1m after tax) relates
to  reductions  in  the Group's interest in  Energis  plc,  an
associated  undertaking, primarily as  a  consequence  of  the
placing by Energis of 77.7m of its shares.

c)   Exceptional tax credit

Details  of a £140.0m exceptional tax credit are contained  in
note 6.


5.   Net interest

                                   Six months ended  Year ended
                                     30 September     31 March
                                    2000      1999      2000
                                      £m       £m        £m
Interest payable and similar
 charges                             164.7     76.0     158.4
Interest capitalised                  (9.7)   (12.1)    (20.4)
Interest receivable and similar
 income                              (73.1)   (44.3)    (95.0)
                                    -------  -------   -------
                                      81.9     19.6      43.0
Joint ventures and associate          16.8     10.7      21.9
                                    -------  -------   -------
                                      98.7     30.3      64.9
                                    =======  =======   =======

Interest receivable and similar income includes a £17.4m gain
(1999 : £nil) from closing out  sterling fixed interest rates
swaps originally entered into as hedges for the Group's
sterling borrowings.  These hedges are no longer needed as a
result of the reduction in the Group's sterling borrowings.



6. Taxation

                                   Six months ended  Year ended
                                     30 September     31 March
                                    2000      1999      2000
                                      £m       £m        £m
Tax on profit, excluding 
  exceptional items,
  for the period                      58.5     64.6     123.1
Adjustment in respect of prior
  periods                            (20.0)     -         -
                                    -------   -------  -------
Taxation - excluding exceptional 
  items                               38.5     64.6     123.1
                                    -------   -------  -------

Tax relating to exceptional
 integration costs                    (3.3)     -         -
Tax relating to exceptional profit
 on partial disposals of Energis       -        -       229.5
Adjustment in respect of prior
  year exceptional tax charge
  arising from the realisation of 
  a capital loss for tax purposes
  as a result of a Group 
  restructuring                     (140.0)     -         -
                                    --------  -------  -------
Taxation - exceptional items        (143.3)     -       229.5
                                    --------  -------  -------
                                    (104.8)    64.6     352.6
                                    ========  =======  =======

The  tax  charge  of  £58.5m on profit, excluding  exceptional
items, for the six months ended 30 September 2000 is based  on
the  estimated effective tax rate for the year ending 31 March
2001 of 26%.

7. Dividends

The interim dividend of 6.05p per ordinary share (1999: 5.59p)
will  be  paid  on  15  January 2001 to  shareholders  on  the
register on 1 December 2000.


8. Earnings per ordinary share

Basic earnings per ordinary share for the six months ended  30
September 2000 of 28.0p (1999: 12.5p) is calculated  based  on
profit  for the period of £412.6m (1999: £183.6m) and 1,474.8m
(1999: 1,471.6m) shares - being the weighted average number of
shares  in issue during the period, excluding the shares  held
by employee share trusts.

Basic  earnings per ordinary share on the adjusted profit  for
the  six months ended 30 September 2000 of 14.8p (1999: 12.6p)
excludes  exceptional items (see notes 4 and 6)  and  goodwill
amortisation totalling £193.9m (1999: £(2.5)m), and  is  based
on earnings of £218.7m (1999: £186.1m).

For  the  purposes of calculating diluted earnings per  share,
earnings  and the weighted average number of shares have  been
adjusted  for  the effects of all dilutive potential  ordinary
shares.



9.   Net cash inflow from operating activities

                                   Six months ended  Year ended
                                     30 September     31 March
                                    2000      1999      2000
                                      £m       £m        £m

Operating profit of Group
 undertakings                        336.2    279.1     572.1
                                 ---------  ---------  ---------
Depreciation and amortisation        188.9     74.9     157.5
Profit on disposal of tangible
 fixed assets                         (6.2)    (0.7)     (4.3)
Increase in stocks                    (3.2)    (1.8)     (0.4)
(Increase)/decrease in debtors       (76.8)    13.3     (21.9)
Decrease in creditors                (79.0)   (55.1)    (11.5)
Decrease in provisions               (12.6)    (0.9)     (6.8)
Other                                 (3.9)     0.3      (2.7)
                                 ---------  ---------  ---------
                                       7.2     30.0     109.9
                                   -------  -------   --------
                                     343.4    309.1     682.0
                                   =======  =======   ========


10.  Movement in net debt

                                   Six months ended  Year ended
                                     30 September     31 March
                                    2000      1999      2000
                                      £m       £m        £m
Movement in cash and overdrafts      (10.3)    16.3      26.4
Cash inflow from management of
  liquid resources                  (372.3)    (5.9)   (618.8)
Increase in borrowings              (415.6)   (25.1)   (769.2)
                                    -------  -------  --------
Change in net debt resulting from
 cash flows                         (798.2)   (14.7) (1,361.6)
Acquisition of Group undertakings   (161.9)     -      (611.7)
Certificates of tax deposit
 surrendered                           -        -        (5.9)
Exchange adjustments                (138.1)     -        29.9
Other movements                       (4.3)    (4.6)    (10.9)
                                    -------  -------- --------
Movement in net debt in the 
 period                           (1,102.5)   (19.3) (1,960.2)
Net debt at start of period       (2,663.6)  (703.4)   (703.4)
                                   --------  ------- ---------
Net debt at end of period         (3,766.1)  (722.7) (2,663.6)
                                   =======  ======== =========




11.    Differences  between  UK  and  US  Generally   Accepted
Accounting Principles ('GAAP')

The  Group  prepares its consolidated accounts  in  accordance
with  UK GAAP, which differ in certain respects from US  GAAP.
The  significant adjustments necessary to restate  net  income
and shareholders' funds in accordance with US GAAP are set out
below.

a)  Net income                     Six months ended  Year ended
                                     30 September     31 March
                                    2000      1999      2000
                                      £m       £m        £m
Profit for the period,
 excluding exceptional items         184.0    183.6     350.6
Exceptional items after taxation     228.6      -       797.8
                                    -------  -------   -------
Net income under UK GAAP             412.6    183.6   1,148.4
                                    -------  -------  --------

Adjustments to conform with US GAAP:
  Deferred taxation                  (83.8)   (17.9)     (1.4)
  Pensions                             9.6      1.8       5.7
  Share option schemes                (4.8)    (1.3)     (5.4)
  Tangible fixed assets                1.7      1.7       3.4
  Financial instruments                5.1    (15.2)     27.9
  Issue costs associated with EPICs   (0.9)    (0.9)     (1.8)
  EPICs liability                     65.0     31.9    (115.0)
  Severance costs                     38.7     (3.3)    (11.3)
  Recognition of UK transmission
   income                            (12.7)     -         -
  Goodwill - effect of US GAAP
    adjustments                       (5.9)     -        (0.2)
  Share of associate's adjustments
    to conform with US GAAP           22.8     2.8      (40.5)
                                    -------   ------- --------
Total US GAAP adjustments             34.8     (0.4)   (138.6)
                                    -------   ------  --------
Net income under US GAAP             447.4    183.2   1,009.8
                                    =======   ======  ========

Basic earnings per share - US GAAP    30.3p    12.4p     68.6p
Diluted earnings per share - US GAAP  28.7p    12.2p     64.7p

Net  income under US GAAP includes £267.5m (1999 : £nil;  year
ended  31  March  2000: £795.7m) relating to  net  exceptional
gains which are treated as exceptional items under UK GAAP.




b)  Shareholders' funds            At 30 September  At 31 March
                                    2000      1999      2000
                                      £m       £m        £m
Shareholders' funds under 
 UK GAAP                           3,233.4   2,057.5  2,909.0
                                  ---------  -------- --------
Adjustments to conform with 
 US GAAP:
  Deferred taxation               (1,033.9)  (722.4)   (916.7)
  Pensions                           175.1    164.8     162.8
  Shares held by employee share
   trusts                            (13.6)   (15.3)    (16.3)
  Ordinary dividends                  89.5     82.5     123.0
  Tangible fixed assets              (43.3)   (46.7)    (45.0)
  Financial instruments                6.1    (20.9)      1.0
  Issues costs associated with
    EPICs                              4.6      6.4       5.5
  EPICs liability                    (50.0)    31.9    (115.0)
  Severance liabilities                4.1      7.6       5.5
  Recognition of UK transmission
    income                           (12.7)     -         -
  Regulatory assets                   40.2      -         -
  Goodwill - effect of US GAAP
    adjustments                      237.9      -       210.6
  Share of associate's adjustments
    to conform with US GAAP           23.1    (11.5)     21.3
  Other adjustments                    2.8      -         -
                                    -------  -------   -------
Total US GAAP adjustments           (570.1)  (523.6)   (563.3)
                                    -------  -------   -------
Shareholders' funds under US GAAP  2,663.3  1,533.9    2,345.7
                                   ======== ========   =======



Cautionary statement

This announcement contains certain statements that are neither
reported  financial results nor other historical  information.
These  statements  are forward-looking statements  within  the
meaning  of  the  safe-harbor provisions  of  the  US  federal
securities laws. Because these forward-looking statements  are
subject to risks and uncertainties, actual future results  may
differ  materially from those expressed in or implied  by  the
statements.  Many of these risks and uncertainties  relate  to
factors  that  are  beyond National Grid  Group's  ability  to
control  or estimate precisely, such as the ability to  obtain
expected  synergies from the acquisition in recent  months  of
New  England Electric System and Eastern Utilities  Associates
and  the  agreed,  but not completed, acquisition  of  Niagara
Mohawk, delays in obtaining or adverse conditions contained in
regulatory  approvals, competition and industry restructuring,
changes  in  economic  conditions, changes  in  energy  market
prices,  changes  in historical weather patterns,  changes  in
laws,  regulations  or  regulatory policies,  developments  in
legal  or public policy doctrines, technological developments,
the  availability of new acquisition opportunities, the timing
and success of future acquisition opportunities and other risk
factors  detailed in National Grid Group's reports filed  with
the Securities and Exchange Commission.  Readers are cautioned
not   to   place   undue  reliance  on  these  forward-looking
statements,  which  speak  only  as  of  the  date   of   this
announcement. The companies do not undertake any obligation to
publicly   release  any  revisions  to  these  forward-looking
statements to reflect events or circumstances after  the  date
of this announcement.

Independent review report to National Grid Group plc

Introduction

We  have been instructed by National Grid Group plc to  review
the financial information set out on pages 9 to 19 and we have
read the other information contained in the interim report for
any  apparent  misstatements or material inconsistencies  with
the financial information.

Directors' responsibilities

The   interim  report,  including  the  financial  information
contained  therein, is the responsibility  of,  and  has  been
approved  by,  the  directors.   The  Listing  Rules  of   the
Financial  Services  Authority  require  that  the  accounting
policies  and  presentation applied  to  the  interim  figures
should  be  consistent  with those applied  in  preparing  the
preceding  annual accounts, except where any changes  and  the
reasons for them are disclosed.

Review work performed

We  conducted our review in accordance with guidance contained
in Bulletin 1999/4 issued by the Auditing Practices Board.   A
review  consists  principally of  making  enquiries  of  group
management and applying analytical procedures to the financial
information  and underlying financial data and, based thereon,
assessing  whether  the accounting policies  and  presentation
have been consistently applied unless otherwise disclosed.   A
review excludes audit procedures such as tests of controls and
verification of assets, liabilities and transactions.   It  is
substantially  less  in  scope  than  an  audit  performed  in
accordance with Auditing Standards and, therefore, provides  a
lower level of assurance than an audit. Accordingly, we do not
express an audit opinion on the financial information.

Review conclusion

On  the  basis of our review, we are not aware of any material
modifications that should be made to the financial information
as presented for the six months ended 30 September 2000.

PricewaterhouseCoopers
Chartered Accountants
London
20 November 2000