Trading Statement

National Grid PLC
30 March 2006

30 March 2006


  National Grid close period trading update for the year ending 31 March 2006

        Continued good performance and strong earnings per share growth

National Grid plc (the 'Group') is today issuing its trading update as it enters
its close period ahead of the announcement of its preliminary results on
Thursday 18 May 2006.

The Group expects to deliver growth in operating profit* and, due to
significantly lower financing costs this year, strong growth in profit before
tax* for the year. The effective tax rate for the year is anticipated to be
around 31%. Earnings per share* are expected to be well ahead of last year,
reflecting the 1 August 2005 share consolidation**.

The good operating performance reflects a continued focus on efficiencies across
the Group, as well as underlying volume growth in the US and higher UK capacity
auction income. This, together with the strengthening US dollar, is forecast to
more than offset a significant increase in depreciation charges, a decrease in
incentive profits, timing on the recovery of US pension costs and higher
shrinkage gas costs.

As expected, net debt is anticipated to be around £11 billion, excluding certain
mark-to-market effects.

* Results are measured on a Business Performance basis. Business Performance
results are the primary financial performance measure used by the Group, being
the results for continuing operations before exceptional items and certain
non-cash mark-to-market re-measurements of commodity contracts and financial
instruments that are held for economic hedging purposes but which do not achieve
hedge accounting.

** The number of ordinary shares in issue is expected to decrease by 12%, from
3.1 billion at 31 March 2005 to 2.7 billion at 31 March 2006 as a result of the
share consolidation.



CONTACTS


Investors

David Campbell    [phone]     [phone](m)

Richard Smith     [phone]     [phone](m)

James Waite       [phone]     [phone](m)


Media

Clive Hawkins     [phone]     [phone](m)


Citigate Dewe Rogerson   [phone]

Anthony Carlisle         [phone](m)




Audited comparative data for the year ended 31 March 2005 under IFRS

Underlying results* for continuing operations            £m
Operating profit                                         2,443
Pre-tax profit                                           1,740
Earnings                                                 1,303
Earnings per share                                       42.3p


Statutory results                                        £m
Operating profit - continuing operations                 2,142
Pre-tax profit - continuing operations                   1,439
Earnings - continuing operations                         1,120
Earnings                                                 1,424
Earnings per share                                       46.2p



Note:
As previously reported, the adoption of International Financial Reporting
Standards (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.



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, 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 obtain, delays in
obtaining or adverse conditions contained in regulatory approvals or other
consents to acquisitions made by or mergers with National Grid, the ability to
integrate these businesses once acquired or merged or to realise the expected
synergies from such transactions, the failure for any reason to achieve
anticipated 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
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
and submissions to 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 announcement. 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.




                      This information is provided by RNS
            The company news service from the London Stock Exchange