UK Regulatory Price Controls

National Grid PLC
15 December 2006


15 December 2006


                               National Grid plc

                 UK REGULATORY PRICE CONTROLS: FINAL PROPOSALS


National Grid has today accepted in principle Ofgem's final proposals for the
Transmission Owner Price Control for the five years from 1 April 2007.


Steve Holliday, Chief Executive Designate, said:

'We are pleased that Ofgem have moved in all areas since September. We believe
that the proposals, although challenging, now offer an acceptable balance of
risk and reward.

'As a result of this review we will substantially increase investment in our
transmission networks, although some of the investment which we had proposed
will be deferred until the following price control period. Overall, we are
confident that we can deliver this investment and manage our UK transmission
networks in a safe, efficient and reliable way, while providing an attractive
return for investors.'


National Grid has also today accepted in principle Ofgem's final proposals for
the one-year Gas Distribution Price Control from 1 April 2007.

National Grid will now work closely with Ofgem on the formal licence
modifications.



CONTACTS


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Citigate Dewe Rogerson     [phone]
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