Metering investigation

RNS Number:6328O
National Grid PLC
25 February 2008


25 February 2008


                               National Grid plc


                            National Grid to appeal

                      Competition Act decision on Metering


National Grid plc ("National Grid") is extremely disappointed with the Gas and
Electricity Markets Authority's (GEMA) decision that National Grid has infringed
the Competition Act in relation to a number of metering contracts entered into
with gas suppliers in 2004.


These contracts were negotiated over a two year period, were voluntarily entered
into by gas suppliers and delivered immediate and substantial reductions in
charges for meter services, saving customers around �120m over the four years of
their operation. Ofgem was consulted throughout this process of contract
development and negotiation and has acknowledged that National Grid had no
intention to breach the Competition Act.


We are convinced that the contracts do not infringe competition law and
therefore believe that they should remain in full effect. We also believe that
the �41.6m fine is wholly inappropriate. We will be lodging an appeal with the
Competition Appeal Tribunal.


National Grid's Chief Executive, Steve Holliday, said:


"National Grid has been instrumental in helping Ofgem to develop competition in
the UK metering industry, and we strongly believe we have never acted
anti-competitively in the development of our contracts. Despite nearly three
years of exhaustive analysis by Ofgem, we believe there is no evidence that
National Grid has harmed consumers, competition or gas suppliers, and we are
left with no option but to present our case to the Competition Appeal Tribunal."



Contacts



Investors

David Rees         +44 (0)20 7004 3170     +44 (0)7901 511322 (m)
George Laskaris    +1 718 403 2526         +1 917 375 0989 (m)
Richard Smith      +44 (0)20 7004 3172     +44 (0)7747 006321 (m)


Media

Clive Hawkins      +44 (0)20 7004 3147     +44 (0)7836 357173 (m)
Chris Mostyn       +1 718 403 2747         +1 347 702 3740 (m)
Gemma Stokes       +44 (0)1926 655273      +44 (0) 7974 198333 (m)


Brunswick
Tim Williamson     +44 (0)20 7396 5350     +44 (0)20 7404 5959




Additional information


National Grid Metering provides regulated gas meter and meter reading services
on behalf of gas suppliers for an asset base of around 18 million domestic,
industrial and commercial meters. National Grid also owns a non-regulated meter
business, OnStream, which provides rental, installation, maintenance and meter
reading services for gas and electricity meters throughout Great Britain, on
behalf of energy suppliers.


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. These statements include information with respect to National Grid's
financial condition, National Grid's 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 National Grid's 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 the forward-looking statements.
Many of these assumptions, risks and uncertainties relate to factors that are
beyond National Grid's 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 and realise the expected synergies from such integration, the
availability of new acquisition opportunities and the timing and success of
future acquisition opportunities, the impact of the sales of businesses by
National Grid, 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
National Grid's 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, owned or operated by National Grid.
For a more detailed description of some of these assumptions, risks and
uncertainties, together with any other risk factors, please see National Grid's
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 its most recent Annual Report on Form 20-F and the "Risk
Factors" section in its Registration Statement on Form F-3 filed with the SEC on
28 June 2006). 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 National Grid 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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