Regulatory Approval

National Grid Group PLC
17 April 2000



SEC approves National Grid and Eastern Utilities
Associates merger

The National  Grid  Group  plc (National  Grid) today
announced  that National Grid USA (formerly New England
Electric System)  has  received approval from the US
Securities and Exchange Commission (SEC) for its proposed
merger with Eastern Utilities Associates (EUA). This was
the final regulatory approval required and the merger is
now expected to close in the next few days.

Under the terms of the merger, National Grid USA will pay
$ 31.459 for each EUA share, valuing the equity of EUA at
$ 642.9 million.

David Jones, Group Chief Executive of National Grid said:

     'We  are pleased to receive this final approval  and
     expect full integration of National Grid USA and EUA
     to  take place on 1 May 2000. This will allow the
     rate  plans agreed last month, in Massachusetts and
     Rhode Island, to be implemented which will benefit
     both customers and shareholders.'

     
Contacts

National Grid   Investor Relations  [phone]

Jill Sherratt                       mobile: [phone]
Diane Boddy


Citigate Dewe Rogerson              + 44 (0) 207 638 9571

Anthony Carlisle                    mobile: [phone]