Re Contract

National Grid Transco PLC
06 January 2003

6 January 2003

NATIONAL GRID TRANSCO AWARDED CONTRACTS

TO PROVIDE BRITISH GAS METERING SERVICES

National Grid Transco has been awarded four contracts by British Gas to provide
metering services for around 11 million domestic gas and electricity customers.

The newly formed unregulated metering company of National Grid Transco will
carry out all planned installation work for both gas and electricity domestic
meters, as well as meter maintenance. The contracts, for work previously carried
out by Transco and the local electricity distribution companies, will provide
improved standards of customer service with enhancements including longer
operating hours and better customer information.

Starting in 2003 and running for five years, the contracts are for the British
Gas areas covering Scotland, the North of England, the Midlands, all of Southern
England including South London, and South Wales.


Edward Astle, Group Director for National Grid Transco, said: 'We are very
pleased to have won the tender. We look forward to delivering a first-class
service to British Gas and its customers. Our aim is to build on this success
and pursue other opportunities that may arise in the competitive metering
market.'

Mark Clare, Managing Director of British Gas, said: 'This deal covers a major
section of our customer base. We're delighted to once again be leading the way
in improving customer service for domestic energy customers.'

NOTES TO EDITORS

National Grid Transco's new unregulated metering company is a wholly-owned
subsidiary, set up to enter the competitive metering market. It is managed and
operated separately from the Group's Transco business.

Currently, all of Great Britain's approximately 20 million domestic gas meters
are owned by Transco, which receives revenue regulated under its price control.
All domestic electricity meters are currently owned by the regional electricity
companies. In the competitive market, newly installed meters will be owned by
the metering company which installs them, and the number of gas meters owned by
Transco and the regional electricity companies will therefore decrease over
time.

For further information please contact:

Media Relations
Gillian Home [phone]

Clive Hawkins [phone]

Jim Willison [phone]

Investor Relations
Marcy Reed [phone]

Terry McCormick [phone]

Louise Clamp [phone]


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