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Useful information

Electronic communication

As a shareholder you can manage your holding online at www.nationalgrid.com/shareholders. This allows you to check your shareholding, recent dividend payments and information such as address and any direct payment details. If you register you can also change information such as your home address and bank details or apply to join the dividend reinvestment plan (see below).

You also have the option to elect to receive documents from National Grid electronically. This means that, instead of receiving the Annual Report and Accounts, Notice of Annual General Meeting and Proxy Card in the post, you will receive an email detailing where the documents can be found on our website and explaining how you can appoint a proxy online. This helps us to manage the cost of maintaining the share register and will save some of the 241 tonnes of paper used in our Annual Report mailing each year.

For full details of the services available or to opt for electronic documentation please visit www.nationalgrid.com/shareholders.

Website

More information about National Grid, including up-to-date announcements, and current and historical share prices, is available on our website at www.nationalgrid.com.

Dividends

National Grid normally pays dividends twice each year, an interim dividend in January and a final dividend in August. Of the total dividend paid each year one third is normally paid as the interim and two thirds as the final dividend.

Shareholders can choose to have dividend payments paid directly into their nominated bank or building society account. This means that the dividend will be in the account on the day of payment, there will be no delays paying in cheques, and there is no possibility of losing or damaging cheques. Tax vouchers will still be provided for your records.

Over half a million shareholders have elected to have their dividends paid to them directly. As well as being convenient for the shareholder this also saves money and paper, as fewer cheques need to be produced and sent out.

To request direct payment of your dividends please contact Capita Registrars or register electronically at www.nationalgrid.com/shareholders.

If you think you have outstanding dividend payments please contact Capita Registrars who will be able to confirm this and provide duplicate cheques if necessary (an administrative charge may be payable).

Details of previous dividends and information about proposed dividends can be found on our website.

Dividend reinvestment plan (DRIP)

A DRIP is in place allowing shareholders to use their dividend payments to purchase additional National Grid shares. To join the DRIP contact Capita Registrars or register electronically at www.nationalgrid.com/shareholders. Please note that charges, as set out in the relevant terms and conditions, are payable in respect of the DRIP.

Share dealing

A low-cost share dealing service is available from Capita Registrars, allowing you to buy and sell National Grid ordinary shares by telephone and online. Trading by telephone or online allows you to know the price of the shares at the time that you deal.

For more information please call 0870 458 4577 (8am – 4.30pm) or visit www.capitadeal.com.

A postal dealing service is also available. For a postal dealing form please call 0870 162 3116.

High street banks may also offer share dealing services.

These details are provided for information only and any action you take is at your own risk. If you have any doubt as to the action you should take, you are recommended to seek your own financial advice from your stockbroker, bank manager, accountant or other independent financial advisor authorised pursuant to the Financial Services and Markets Act 2000.

Shareholder Networking

National Grid operates a Shareholder Networking programme, the aim of which is to allow shareholders to gain a better understanding of the business. The programme runs over two days and includes visits to operational sites and presentations by senior managers and employees. Participants also have the opportunity to meet and question Directors during the programme, the costs of which (including shareholder travel to and from the event) are covered by National Grid.

The programme normally operates during early December.

If you would like to take part, please write to:

Shareholder Networking Organiser
National Grid House
Warwick Technology Park
Gallows Hill
Warwick CV34 6DA

Participants will be selected by ballot from those applying, with priority given to those who have not recently attended.

ShareGift

If you hold only a few shares and feel that it is uneconomical or not worthwhile to sell them, you could consider donating your shares to charity. ShareGift is an independent registered charity (no. 1052686) that provides a free service for shareholders wishing to give holdings of shares to benefit charitable causes.

For more information please visit www.ShareGift.org or call Capita Registrars.

Individual Savings Accounts (ISAs)

Corporate ISAs for National Grid shares are available from Stocktrade. For more information call Stocktrade on 0131 240 0443 or write to Stocktrade, 81 George Street, Edinburgh EH2 3ES. National Grid cannot advise you on what action, if any, you should take in respect of your shares.

Capital Gains Tax (CGT)

CGT information relating to National Grid shares (including details in respect of British Gas shares) can be found on our website or obtained from Capita Registrars. Share prices on specific dates can be found on our website using the historic share price lookup facility.

Alternative formats

Audio tape, braille and large print versions of the Annual Review are available. If you wish to receive any of these documents please contact Capita Registrars.

Shareholders

The following table includes a brief analysis of shareholder numbers and shareholdings as at 31 March 2007:

Size of shareholding	Number of shareholders	% of shareholders	Number of shares	% of shares
1-50	232,565	19.07	7,252,130	0.27
51-100	364,600	29.90	24,716,068	0.91
101-500	523,832	42.95	103,793,487	3.84
501-1,000	52,962	4.34	37,159,735	1.38
1,000-10,000	43,294	3.55	100,416,828	3.72
10,001-50,000	1,203	0.10	24,430,715	0.90
50,001-100,000	232	0.02	17,220,012	0.64
100,001-500,000	484	0.04	117,414,426	4.35
500,001-1,000,000	151	0.01	105,716,687	3.91
1,000,000+	288	0.02	2,162,938,784	80.08
Total	1,219,611	100	2,701,058,872	100