(NGG)                                www.ngc.co.uk/

The operation of the electricity transmission system in England and Wales, the procurement of ancilliary services, the operation of the interconnectors with Scotland and France and the operation of the Pool settlement system and the Pool funds transfer operations. It also has investments in electricity networks in Argentina and Zambia and built a national telecoms network in England and Wales for Energis.

Why we bought the share

1. Everyone needs/wants electricity, so at time of
uncertainty in the funny money world of intangibles,
utilities are sound.

2. 19 March Financial Mail on Sunday had lengthy article
describing NG's use of existing power line infrastructure
to carry telecommunications cabling at marginal extra
cost. (This could be true also of Railtrack, one of our past
considerations which has extensive communications
systems as well as the land over which cabling can be laid. Just
a bit more risk from vandalism - NG's has its own lethal
vandal protection system)

NG looking to expand abroad into hitherto relatively
untapped markets, e.g. South America, Eastern bloc
countries, as well as USA (it's just received approval of
a £2 billion bid for New England Electric System and next
target is New York, and later the high-tech economy area
in Massachusetts). In S. America the opportunities are
just opening up and NG is an early entrant. Already in
Argentina NG now controls around 95% of electricity
transmission and in Brazil it owns the 2nd largest
telecomms operator. In Latin America telecomms is one
of the fastest growing sectors, with data transmission
relatively untapped

NG has become most highly valued electricity company
on London Stock Exchange, worth more than British Energy,
PowerGen and National Power combined, quietly building a
global empire, driving down costs of transmission by 50%
since 1991 and improving quality of service.

Now a leader in broadband global telecomms and at low
cost because of existing infrastructure.

Telecomms a growth market, viz growing internet usage,
initiatives from likes of Kingston Communications,
increased numbers of telecomms partnerships, not all of
which would wish to use comparatively insecure satellite
telecomms.

NG has a stake in its former telecomm subsidiary,
Energis (which name I've spotted on my Sky phone bill - from
taking advantage of discounts as a Sky digital subscriber),
which has done an equivalent of Freeserve, outgrowing its
parent and now separately quoted.

3. A bigger player than would seem at first sight and with
a broad spread of economies, thus spreading risk. But
with all of them it has an involvement with electricity, which
domestic and commercial users alike simply cannot do
without, unlike the lastminute.coms of this world. And,
although not prone, like supermarkets to "market share"
within the UK, its markets are world wide and it has
found, and is continuing to expand in, corners of the
globe (if a circular round object can have corners) where
there is plenty of scope for growth.

And since ...

TBA

STANDING DATA

**************************************
NATIONAL GRID GROUP PLC (THE) (NGG) **************************************

Industry: ELECTRIC GAS AND SANITARY SERVICES

NATIONAL GRID HOUSE
KIRBY CORNER ROAD
COVENTRY
CV4 8JY
UNITED KINGDOM
TEL: +44 24 76 537777

Employees: 3628
Market Cap (MIL): 7,497.95

Officers:
Chairman: J. ROSS
Chief Executive: D. JONES
Finance Director: S. BOX
Secretary: F. SMITH
Secretary: F.B. SMITH