Trading Statement

National Grid Transco PLC
01 April 2004

1 April 2004

        
                           National Grid Transco

          Close period trading update for the year ended 31 March 2004

                       Strong Profit and Earnings Growth


National Grid Transco plc (the 'Group') is today issuing its trading update on
the commencement of its close period and prior to the announcement of its
preliminary results on Thursday, 20 May 2004.


The Group's financial performance for the year ended 31 March 2004 has been
particularly strong, and we expect that earnings per share (excluding
exceptional items and goodwill amortisation) will be substantially ahead of last
year and in line with expectations.


We expect that operating profit (excluding exceptional items and goodwill
amortisation) for the year will be ahead of the level delivered last year,
despite increased pension costs, a weaker US dollar and a return to more normal
US weather conditions. This has been achieved primarily by the delivery of
significant efficiency and integration savings and regulatory timing
differences. We are also benefiting from improved performance at Gridcom and our
exit from non-core businesses last year.


Furthermore, a combination of lower effective interest rates and a weaker US
dollar is expected to lead to a reduction in interest costs and contribute to
strong growth in profit before tax (excluding exceptional items and goodwill
amortisation).


The effective tax rate on profit before tax (excluding exceptional items and
goodwill amortisation) is anticipated to be around 25%.


Net debt at 31 March 2004 is reduced to around £13bn.


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 failure to retain key management, 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 the ability to integrate
Niagara Mohawk and Lattice Group plc successfully within National Grid Transco
or to realise synergies from such integrations, the failure for any reason to
achieve reductions in costs or to achieve operational efficiencies, unseasonable
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 National Grid
Transco's pension schemes and the regulatory treatment of pension costs, the
impact of any potential separation and disposal by National Grid Transco of any
UK gas distribution network(s) and any adverse consequences arising from outages
on or otherwise effecting energy networks owned and/or operated by National Grid
Transco. 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). Recipients 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

Clive Hawkins            [phone]          [phone](m)


Citigate Dewe Rogerson   [phone]

Anthony Carlisle         [phone](m)





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