Trading Statement

National Grid Transco PLC
26 March 2003

26 March 2003

               National Grid Transco close period trading update

                        for the year ended 31 March 2003

            Financial results for the year in line with expectations



National Grid Transco plc (the 'Group') is today issuing its trading update
prior to entering its close period and the announcement of its full year results
on Wednesday 21 May 2003.

Operating performance for the year ended 31 March 2003 will be in line with our
expectations. This includes progress on programmes to deliver controllable cost
reductions and merger synergies. In the US, the impact of the weakened economy
and dollar has been offset by the benefits of favourable weather.

Profit before tax (excluding exceptional items and goodwill amortisation) is now
expected to be impacted by some £30m as a result of our decision to suspend,
with effect from 1 October 2002, recognition of (non cash) UK pension surplus
credits.

As previously indicated, we do not expect to release any prior year tax
provisions and the effective tax rate on the profit before tax (excluding
exceptional items) is anticipated to be approximately 33%.

The cashflow impact of the programmes previously announced to deliver
restructuring and merger benefits, combined with the Group's share buy-back
programme, will result in net debt of around £14bn at 31 March 2003.

During the course of the year (up to 25 March 2003), the Group purchased for
cancellation 24,225,000 of its ordinary shares at an average price of 401.59p.
The weighted average number of shares for the year ending 31 March 2003 for
purposes of calculating earnings per share is expected to be around 3.08
billion.

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 Transco'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,
developments in legal or public policy doctrines, technological developments,
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 integrate Niagara Mohawk and Lattice Group plc successfully within
National Grid Transco or to realise synergies from such integration or the
failure to retain key management, unseasonal 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 the National Grid Transco's pension schemes and the
regulatory treatment of pension costs. For a more detailed description of these
assumptions, risks and uncertainties, together with any other risk factors
please see National Grid Transco's filings with the United States Securities and
Exchange Commission (and in particular the 'Risk Factors' and 'Operating and
Financial Review' sections in its most recent annual report on 20F). Readers are
cautioned not to place undue reliance on these forward-looking statements, which
speak only as of the date of this announcement. National Grid Transco does not
undertake any obligation to publicly release any revisions to these
forward-looking statements to reflect events or circumstances after the date of
this announcement.



Contacts

Investors

Marcy Reed          [phone]     [phone](m)

Terry McCormick     [phone]     [phone](m)

Louise Clamp        [phone]     [phone](m)

Bob Seega (US)      [phone]



Media

Gillian Home        [phone]

Clive Hawkins       [phone]
                
Jim Willison        [phone]

Pager               [phone] (out of hours)



Citigate Dewe Rogerson     [phone]

Anthony Carlisle           [phone](m)


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