E-communications

You can choose to receive all regular communications from the Company electronically. Would you prefer to receive an email or download what you wanted rather than receive Annual Reports, Notices of Meeting, dividend tax vouchers?

Each shareholder who chooses electronic communication will become a founder member of 'Climate Saver'. For each shareholder signing-up National Grid sponsors Climate Saver Projects (for details see below).

Advantages of electronic communication are:

• Security: your documents cannot be lost in the post or read by others;
• Easy access: check your shareholding and account transactions on-line at any time;
• Convenience: change your name, address or dividend mandate details on-line;
• Environmentally friendly: the environmental impact of producing and circulating printed documents, and of your disposing of them, is reduced.

For more information please visit www.nationalgrid.com/shareholders.

In recognition of the benefits to the environment of our shareholders opting for electronic communication, National Grid has joined Future Forests Ltd to introduce 'Climate Saver'.

• Save paper: National Grid used 295 tonnes of paper for the Annual Report, Annual Review and associated documents in 2004.  By accessing annual reports via a website you can read information on screen or only print those pages that you need;
• Save CO2: printed material is responsible for producing roughly its own weight in the global warming gas carbon dioxide (from both production and delivery).  The emissions associated with electronic delivery are minial by comparison.

Each shareholder who elects to receive electronic communications from National Grid will become a founder member of 'Climate Saver' and National Grid will sponsor Climate Saver Projects.

These projects are managed by Future Forests Ltd as part of its CarbonNeutral programme and aim to reduce CO2 emissions or absorb CO2.  Initially there will be a forestry project in Scotland and solar power projects in India and Sri Lanka to reduce the use of kerosene burners.

Details of these projects can be found in the following attachments:

Forestry project

Solar power project

Founder members of 'Climate Saver' will be sent (by email) a 'Climate Saver' certificate, which you can dedicate to someone should you wish.