Trading Statement

National Grid PLC
30 September 2005


30 September 2005

        National Grid close period trading update for the six months ended
                                30 September 2005

                     Continued good underlying performance

National Grid plc (the 'Group') is today issuing its trading update prior to
entering its close period and the announcement of its interim results on
Thursday 17 November 2005. These will be the first set of results the Group will
report under International Financial Reporting Standards (IFRS). Also today, the
Group is issuing comparative unaudited IFRS results for the period ending 30
September 2004, a summary of which is below.

The Group's operating performance is expected to be good. It has been driven by
continued underlying volume growth in the US, favourable results from UK
capacity auctions, a continued focus on efficiencies and a full period
contribution from Crown Castle UK. The operating performance, together with
positive weather effects, is expected to offset a significant under recovery of
higher commodity costs in the US, which will be recovered in future periods, and
a period-on-period weakening of the US dollar. For these reasons, operating
profit* is expected to be in-line with last year. Profit before tax* is expected
to be ahead of last year due to lower interest expense this year.

The effective tax rate on profit before tax* is anticipated to be around 32%. As
a result, earnings* are expected to be similar to the same period last year.
Earnings per share* for the period are expected to be ahead of the same period
last year, having benefited from the share consolidation which occurred on 
1 August 2005. The seasonally more significant second half will fully reflect 
this consolidation**.

After IFRS transition adjustments, excluding certain mark-to-market effects in
the period, net debt is expected to be around £11 billion. This reflects the
receipt of £5.8 billion upon completion of the Group's UK gas network sales on 
1 June 2005, the £2 billion return of value to shareholders in August 2005, the
increase in capital investment and normal seasonal factors.



* References are to continuing underlying results. Underlying results exclude
exceptional items and certain mark-to-market re-measurements.
** The number of ordinary shares in issue has decreased by 12%, from 3.1 billion
at 31 March 2005 to 2.7 billion at 30 September 2005 as a result of the share
consolidation.

Note:
As previously reported, the adoption of IFRS will lead to greater volatility on
both underlying and statutory reported earnings due to the effects IFRS has on
the accounting treatment of US regulatory assets as compared with UK GAAP and
the adoption of International Accounting Standard 39: Financial Instruments,
Recognition and Measurement, which the Group adopted with effect from 1 April
2005. While this may cause the reported results for any given period to be more
volatile than those reported under UK GAAP, this change in treatment does not
impact the performance of the Group or its current or future cash flows.


Unaudited comparative data for the six months ended September 2004 under IFRS
          
Underlying results* for continuing operations        £m
Operating profit                                     1,030
Pre-tax profit                                         697
Earnings                                               493
Earnings per share                                    16.0p

Statutory results
Operating profit - continuing operations               958
Pre-tax profit - continuing operations                 625
Earnings - continuing operations                       448
Earnings                                               504
Earnings per share                                    16.4p

A full statement of the Unaudited September 2004 IFRS comparatives is available
on the Group's website www.nationalgrid.com.


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'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, the impact of changes to
accounting standards, 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 continue to integrate the US and UK businesses acquired
by or merged with National Grid, the failure for any reason to achieve
reductions in costs or to achieve operational efficiencies, 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's pension
schemes and the regulatory treatment of pension costs, the impact of the
separation and sale by National Grid of four of its UK gas distribution networks
and any adverse consequences arising from outages on or otherwise affecting
energy networks owned and/or operated by National Grid.

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


Contacts

Investors
Alexandra Lewis      [phone] [phone](m)
David Campbell       [phone] [phone](m)
Richard Smith        [phone] [phone](m)

Media
Clive Hawkins        [phone] [phone](m)

Citigate Dewe Rogerson                   [phone]
Anthony Carlisle                         [phone](m)



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