Parent company announcement

National Grid Transco PLC
05 May 2004

5 May 2004

                             National Grid Transco

                       Redemption of Special Share in NGT

National Grid Transco welcomes today's announcement from the UK Government that
it plans to redeem the Special Share in National Grid Transco.

Following redemption NGT will cancel the Special Share and amend its Articles of
Association accordingly.

The Special Share was put in place at privatisation and it is the view of the UK
Government and NGT that developments in the regulatory and competition
frameworks mean that it is no longer required.

Contacts

Investors

Marcy Reed          [phone]     [phone](m)

Terry McCormick     [phone]     [phone](m)

Louise Clamp        [phone]     [phone](m)

Media

Clive Hawkins       [phone]     [phone](m)

Citigate Dewe Rogerson     [phone]

Anthony Carlisle           [phone](m)


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