Repurchase of B Shares

National Grid PLC
08 August 2005

                                                                   8 August 2005



This document should not be transmitted, distributed or released in or into any
jurisdiction in which such an act would constitute a violation of the relevant
laws of such jurisdiction.

                               National Grid plc


                     Initial Repurchase Offer for B Shares


National Grid has appointed JPMorgan Cazenove to make the Initial Repurchase
Offer in accordance with the Circular to Shareholders and the US Supplemental
Memorandum, each dated 6 June 2005.


JPMorgan Cazenove hereby makes the Initial Repurchase Offer, acting as
principal, to purchase the 843,811,272 B Shares in respect of which valid
elections have been received from Shareholders and ADR Holders in an on-market
transaction on the terms set out in the Circular to Shareholders and the US
Supplemental Memorandum. The offer is to purchase B Shares for 65 pence each,
free of all dealing expenses and commissions.


With respect to Shareholders, cheques and sale advices are expected to be
despatched and assured payments made through CREST on 22 August 2005 in respect
of B Shares purchased under the Initial Repurchase Offer.


With respect to ADR Holders, cheques and transaction advices are expected to be
despatched and book-entry credits made on 25 August 2005 in respect of B Shares
purchased under the Initial Repurchase Offer.


Notes:


All definitions used in the Circular to Shareholders and the US Supplemental
Memorandum, each dated 6 June 2005 apply to this announcement.


Enquiries:

National Grid plc

Investors

Alexandra Lewis    [phone]

David Campbell     [phone]

Richard Smith      [phone]



Media

Clive Hawkins      [phone]


JPMorgan Cazenove, Broker to National Grid plc

Jonathan Wilcox                                          [phone]
Matthew Lawrence                                         [phone]

Additional Information:

In the United States, National Grid plc has filed a Tender Offer Statement on
Schedule TO (the 'Schedule TO') containing the Circular to Shareholders, a US
Supplemental Memorandum, an Election Form and a Letter of Election and
Transmittal for shareholders and holders of American Depositary Receipts,
respectively, and other related documentation with the SEC. Free copies of the
Schedule TO and the other related documents filed by National Grid plc in
connection with the B Share Alternatives are available on the SEC's website at
http://www.sec.gov.

END


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