NEES/EUA Merger

NATIONAL GRID GROUP PLC
30 September 1999

The National Grid Group plc (NGG)

FERC APPROVES NEES/EUA MERGER

The National Grid Group plc ('National Grid') announces
that New England Electric System ('NEES') has received
approval of the proposed merger of NEES with Eastern
Utilities Associates ('EUA') by the Federal Energy
Regulatory Commission ('FERC').

On 14 December 1998 National Grid announced that, subject
to the required approvals, National Grid would acquire
all the outstanding shares of NEES valued at $3.2
billion. NEES announced on 1 February 1999 that, subject
to the required approvals, NEES would acquire all the
outstanding shares of EUA valued at $634 million.

In April 1999, the merger of NEES and EUA received Hart-
Scott-Rodino clearance from the Department of Justice and
the Federal Trade Commission.  The merger also requires
approval from the Securities and Exchange Commission,
Nuclear Regulatory Commission, and the state utility
commissions in Massachusetts and Rhode Island.

The proposed merger between NEES and EUA will result in a
company that serves more than 1.6 million electricity
customers in 228 communities in Massachusetts, Rhode
Island and New Hampshire and is expected to close by
early 2000.

                         Contact

National Grid                            Citigate Dewe Rogerson
[phone]                         [phone]
Jill Sherratt,Investor Relations         Anthony Carlisle
Steve Cronin,Investor Relations          Duncan Murray
Diane Boddy,Investor Relations