Trading Statement

National Grid PLC
29 March 2007


29 March 2007


                 National Grid close period trading update for
                     the twelve months ending 31 March 2007


                                Continued growth


National Grid plc is today issuing its close period trading update ahead of
announcing its preliminary results on Thursday 17 May 2007.

We expect operating profit* to be ahead of last year (on a constant currency
basis) with growth in earnings per share.*

We anticipate higher revenues, principally driven by higher allowed revenues in
electricity transmission in the UK and recovery from the New York deferral
account. These benefits are expected to be partially offset by the impacts of
timing, including an under-recovery of revenue in UK transmission,
under-recovery of revenue in UK gas distribution due to the warm winter, and
higher storm costs in the US. Weather in the US is closer to the seasonal norm
this year and so is expected to result in lower electricity distribution
revenue. We also anticipate higher controllable operating costs mainly driven by
increased workload in the UK and US.

With lower financing costs and an expected effective tax rate of around 32%, we
anticipate earnings to be ahead of last year.*

We have completed our share buy back programme relating to this year's US
stranded assets cash flows. The weighted average number of shares for the year
will be around 2,719 million.

We forecast capital expenditure of around £2.3billion** for the year and expect
closing net debt of around £11.8 billion, excluding certain mark-to-market
effects.

At our preliminary results on 17 May, we will report against our new lines of
business for Transmission, Gas Distribution, Electricity Distribution, and
Non-regulated businesses and other. Presented below are National Grid's 2005/06
results in accordance with the new lines of business.


LINES OF BUSINESS                                 Operating profit* (£m) 2005/06
Transmission                                                               971
Gas Distribution                                                           530
Electricity Distribution - excluding US
stranded costs                                                             317
Non-regulated businesses and other*                                        150
                                                                        -------
Total operating profit - excluding US
stranded costs                                                           1,968
                                                                        -------
US stranded cost recoveries                                                489
                                                                        -------
Total operating profit                                                   2,457


* Results are measured on a Business Performance basis. Business Performance
results are the primary financial performance measures that we use, being the
results for continuing operations before exceptional items and remeasurements.
Remeasurements are non-cash movements in the carrying value of financial
instruments and of certain commodity contracts that arise from changes in
mark-to-market values or in exchange rates and are reflected in the income
statement to the extent that hedge accounting is not achieved or is not fully
effective. Following our announcement on 16 November 2006 of our intent to exit
our Wireless Infrastructure and Basslink businesses we have, for the purposes of
this statement, excluded these businesses from business performance

**Excluding investment in Wireless and Basslink



CONTACTS

Investors
David Rees     [phone]     [phone] (m)
Richard Smith  [phone]     [phone] (m)
James Waite    [phone]     [phone] (m)


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


Brunswick
Paul Scott     [phone]     [phone](m)





Cautionary statement

This document 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.
These statements include information with respect to our financial condition,
our results of operations and businesses, strategy, plans and objectives. Words
such as 'anticipates', 'expects', 'intends', 'plans', 'believes', 'seeks',
'estimates', 'may', 'will', 'continue', 'project' and similar expressions, as
well as statements in the future tense, identify forward-looking statements.
These forward-looking statements are not guarantees of our future performance
and are subject to assumptions, risks and uncertainties that could cause actual
future results to differ materially from those expressed in or implied by such
forward-looking statements. Many of these assumptions, risks and uncertainties
relate to factors that are beyond our ability to control or estimate precisely,
such as delays in obtaining, or adverse conditions contained in, regulatory
approvals and contractual consents, including those required to complete the
proposed acquisition of KeySpan when or as planned, unseasonable weather
affecting the demand for electricity and gas, 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 and technological developments. Other factors that could
cause actual results to differ materially from those described in this
announcement include the ability to integrate the businesses relating to
announced acquisitions with our existing business to realise the expected
synergies from such integration, the availability of new acquisition
opportunities and the timing and success of future acquisition opportunities,
the timing and success or other impact of any sale or exit by us from a business
or sector, the failure for any reason to achieve reductions in costs or to
achieve operational efficiencies, the failure to retain key management, 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 our
pension schemes and the regulatory treatment of pension costs, and any adverse
consequences arising from outages on or otherwise affecting energy networks,
including gas pipelines, which we own or operate. For a more detailed
description of some of these assumptions, risks and uncertainties, together with
any other risk factors, please see our filings with and submissions to the US
Securities and Exchange Commission (the 'SEC') (and in particular the 'Risk
Factors' and 'Operating and Financial Review' sections in our most recent Annual
Report on Form 20-F). Except as may be required by law or regulation, National
Grid undertakes no obligation to update any of its forward-looking statements.
The effects of these factors are difficult to predict. New factors emerge from
time to time and we cannot assess the potential impact of any such factor on its
activities or the extent to which any factor, or combination of factors, may
cause results to differ materially from those contained in any forward-looking
statement.





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