SEC Consultation Document on Foreign Mergers

National Grid Group PLC
17 December 1999


THE NATIONAL GRID GROUP plc (NGG)

SEC ISSUES A CONSULTATION DOCUMENT ON FOREIGN MERGERS
WITH US UTILITIES

The Securities and Exchange Commission (SEC) has
announced that it is issuing a concept release and
request for comments (consultation document) regarding
the acquisition of US utilities by foreign companies.
The SEC requests comments by early February 2000.

The National Grid Group (National Grid) and New England
Electric System (NEES) have been seeking regulatory
approvals for their proposed merger.  All regulatory
approvals have been granted except SEC approval under the
Public Utility Holding Company Act of 1935.  National
Grid and NEES filed for approval of their merger with the
SEC in March 1999.

National Grid and NEES have been co-operating closely
with SEC staff and believe that they have addressed all
the issues raised in the consultation document.  However,
the companies do not now expect approval of the merger
before the SEC receives comments on the concept release
in February.


Contact:

National Grid:
Jill Sherratt, Investor Relations Manager         [phone]
                                          mobile: [phone]

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