Trading Statement

National Grid Transco PLC
24 September 2003

24 September 2003

               National Grid Transco close period trading update

                   for the six months ended 30 September 2003


                  Strong Profit Before Tax and Earnings Growth


National Grid Transco plc (the 'Group') is today issuing its trading update
prior to entering its close period and the announcement of its interim results
on Thursday 20 November 2003.

Group operating performance for the six months ended 30 September 2003 has been
strong with the realisation of significant merger savings and continued cost
reductions throughout the business. Due to a number of one-off benefits enjoyed
in the same period last year, the expected reduction in US stranded cost
recovery and exchange rate movements, operating profit (excluding exceptional
items and goodwill amortisation) for the period is expected to be in line with
the level delivered last year.

The effective tax rate on the profit before tax (excluding exceptional items and
goodwill amortisation) is anticipated to be no higher than the 27% rate in the
first half of last year.

The cash outflow associated with ongoing capital investment and programmes
delivering restructuring and merger benefits is expected to be largely offset in
net debt by the settlement of the EPIC bond in May 2003. Net debt is therefore
expected to be broadly unchanged from the £14.2bn level at the same point last
year.

Overall, profit before tax (excluding exceptional items and goodwill
amortisation) is expected to be substantially ahead of the same period last
year, benefiting from continued cost reductions and lower interest costs. We are
on track to deliver significant earnings growth for the full year.



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 Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934,
as amended. Because these forward-looking statements are subject to assumptions,
risks and uncertainties, actual future results may differ materially from those
expressed in or implied by such statements. Many of these assumptions, risks and
uncertainties relate to factors that are beyond National Grid Transco's ability
to control or estimate precisely, such as delays in obtaining or adverse
conditions contained in regulatory approvals, competition and industry
restructuring, changes in economic conditions, currency fluctuations, changes in
interest and tax rates, 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 failure to retain key management, the availability of new acquisition
opportunities or the timing and success of future acquisition opportunities.
Other factors that could cause actual results to differ materially from those
described in this announcement include the ability to successfully achieve the
integration of Lattice Group plc within National Grid Transco and/or the
integration of National Grid Transco's operations in the United States or to
realise synergies from these integrations, unseasonable weather impacting on
demand for electricity and gas, the behaviour of UK electricity market
participants on system balancing, the timing of amendments in prices to shippers
in the UK gas market, the performance of National Grid Transco's pension schemes
and the regulatory treatment of pension costs, the impact of any potential
separation and disposal by National Grid Transco of any UK gas distribution
network(s) and any adverse consequences arising from outages on or otherwise
effecting energy networks owned and/or operated by National Grid Transco.

For a more detailed description of these assumptions, risks and uncertainties,
together with any other risk factors, please see National Grid Transco's filings
with the United States Securities and Exchange Commission (and in particular the
'Risk Factors' and 'Operating and Financial Review' sections in its most recent
annual report on 20F). Recipients are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date of this
announcement. National Grid Transco does 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.


Contacts


Investors

Marcy Reed          [phone]     [phone](m)

Terry McCormick     [phone]     [phone](m)

Louise Clamp        [phone]     [phone](m)

Bob Seega (US)      [phone]


Media

Clive Hawkins              [phone]


Citigate Dewe Rogerson     [phone]

Anthony Carlisle           [phone](m)


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