SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

FORM 6-K

REPORT OF FOREIGN ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 OF

THE SECURITIES EXCHANGE ACT OF 1934

Date: 15 November 2007

NATIONAL GRID plc

(Registrant’s Name)

1-3 Strand
London
WC2N 5EH
(Registrant’s Address)

     Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F þ		Form 40-F o

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3- 2(b) under the Securities Exchange Act of 1934.

Yes o		No þ

     If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):

 

 

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorised.

Date: 15 November 2007

ANNEX 1 — SUMMARY

FORM 6-K

SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549

Report of Foreign Issuer

Pursuant to Rule 13a — 16 or 15d — 16 of
The Securities Exchange Act of 1934

Announcement sent to the London Stock Exchange on 15 November 2007

National Grid plc
1-3 Strand, London, WC2N 5EH,
United Kingdom

Announcement:

‘National Grid plc — Half Year Report and Half Year Financial Information for the six months ended 30 September 2007’

15 November 2007

National Grid plc
Half year report for the six months ended 30 September 2007 (unaudited)

HIGHLIGHTS

•

Very strong first half performance

	•		Operating profit, excluding US stranded cost recoveries, up 19%
	•		Earnings per share, excluding US stranded cost recoveries, up 23%
	•		Interim dividend 11.7p, dividend policy update early 2008
	•		Outlook for the full year remains in line with our expectations

•

Delivering on strategy

	•		Acquisition of KeySpan and disposals of Wireless and Basslink completed
	•		£1,042m returned to shareholders via buy-back programme to date
	•		Capital investment up 39% on prior period, strong investment pipeline for organic growth

FINANCIAL RESULTS FOR CONTINUING OPERATIONS

(£m, at actual exchange rate)		Six months ended 30 September
		2007				2006				% change
Business performance1 (excluding US stranded cost recoveries)
Operating profit			1,039				876				19
Pre-tax profit			757				625				21
Earnings			528				437				21
Earnings per share			19.8				16.1				23
Earnings per share (including US stranded cost recoveries)			24.1				20.5				18
Statutory results Operating profit			1,187				1,110				7
Pre-tax profit			917				781				17
Earnings			783				561				40
Earnings per share			29.4				20.6				43
Dividend per share			11.7				10.9				7

Steve Holliday, Chief Executive, said:

“National Grid continues to make significant progress. We are delivering on all fronts of our strategy and have produced an excellent financial performance in this period. We have in place a strong management team that is developing a unique global operating model.

“Our growth prospects are positive, given the diversity of our regulatory settlements and our plans for investment in our current business. I believe we have a great platform to deliver further improvements in customer service, reliability, safety and environmental performance and continue to deliver value for our shareholders.”

National Grid
2007/08 Half Year Report

CHIEF EXECUTIVE’S REVIEW

National Grid has continued to deliver its strategy on all fronts. We have again delivered a very strong financial performance, growing operating profit — particularly in our Transmission and Gas Distribution businesses — growing earnings per share, and increasing the interim dividend.

During the period we completed the planned disposals of non-core businesses. In April, we announced that we had sold our UK Wireless business and we completed the sale of our US Wireless business in August. Also in August, we completed the sale of Basslink, our interconnector in Australia. Together these disposals have generated total proceeds of £3.1bn, almost double our invested capital.

On 24 August, we completed the acquisition of KeySpan, significantly growing our footprint in North America and positioning National Grid as the second largest energy delivery company in the US (by customer numbers). We are making good progress with the implementation of our global operating model and the integration of KeySpan. We believe that around 75% of our activities can be managed on either a global or lines of business basis, while only 25% need to be tailored to meet specific local requirements. To achieve this aim, we are developing and deploying standardised procedures and processes for customer service, asset management, and work delivery. In support of these ‘front-line’ activities, we have established UK and US Shared Services, Global IS and Global Finance organisations. We believe that this approach to running our business will yield significant savings in our regulated controllable cost base, which is around £2bn annually. This framework provides an excellent platform for improving customer service, reliability, safety and environmental performance, and is, over time, expected to create significant shareholder value.

As part of our continuing focus on electricity and gas operations we are currently assessing a potential sale of our National Grid UK Property business. In September, we issued an information memorandum to potential buyers, and expect to take a decision on a sale option later this year.

In October, we announced our intention to pursue the sale of Ravenswood, our generating station in New York City. Sale of the plant is a condition of the New York Public Service Commission (NYPSC) order approving the acquisition of KeySpan. Our timetable is well in advance of the three year period allowed by the NYPSC and we expect to announce an agreed sale by the end of the first quarter of 2008.

Investment

We have a strong investment pipeline for organic growth and plan to invest a total of around £16bn in our priority markets over the six years to March 2012. This is expected to be financed from internal cashflow and borrowings. Our plans are on track and since April 2006, we have invested £3.8bn.

In the UK electricity and gas markets, investment is being driven by changes in sources of gas supply, the development of the UK Government’s energy policy and the need for asset replacement. In Transmission, our UK investment for the five years to 2012 has been agreed with Ofgem and will be remunerated under the regulatory price control that came into effect on 1 April 2007. In Gas Distribution, we are currently discussing with Ofgem our UK investment requirements for the five years to 2013 as part of the regulatory price control beginning 1 April 2008, and we project capital investment of £3.6bn (including replacement expenditure of £2.4bn) over the five-year period. By March 2012 we project that the value of our total UK regulatory asset base will have grown by over 35% from its March 2007 level.

In the US electricity and gas markets, investment is being driven by demand growth, customer additions, reliability, and the need for asset replacement. On 22 October, as agreed with the NYPSC, we filed a detailed five-year capital investment plan for electricity transmission and distribution in upstate New York. This plan calls for a minimum investment of $1.47bn and the potential to invest up to around $2.4bn. We will be filing with the NYPSC shortly to recover a portion of this investment under our existing rate plan, and expect to recover the balance as part of our next rate plan from 1

National Grid
2007/08 Half Year Report

January 2012. These investments are largely targeted at enhancing customer service by improving the reliability of our electricity system. Our enlarged US gas networks offer a significant opportunity for growth through new gas connections — we aim to connect around 60,000 new customers to our networks each year — and together with asset replacement, we expect this will drive annual investment of around $600m on average. By March 2012, we project that the value of our US rate base will have grown by over 25% from its March 2007 level.

Regulation

National Grid operates under 20 main regulatory controls and we believe that this regulatory portfolio leads to greater stability in our operating profit. While rate plans are currently in place for the majority of our activities, in the UK, we are in discussion with Ofgem on the regulatory price control for our gas distribution networks for the five years to March 2013. In September, we received Ofgem’s updated proposals and although progress has been made in some areas since Ofgem published its initial proposals in May, we believe that Ofgem’s proposed operating cost allowances will only deliver ‘bare-minimum’ networks. Overall, we believe that National Grid is the most efficient UK gas network manager, offering the lowest cash cost per customer. We continue to work closely with Ofgem ahead of the publication of its final proposals, expected on 3 December 2007, to ensure that this business earns acceptable returns.

In the US, we are currently preparing three gas rate plan filings for our upstate New York gas network, our Rhode Island gas network, and our New Hampshire gas network (together representing around 20% of our US gas rate base). These networks are not currently earning their allowed returns and we expect to make filings with the relevant state regulators within the next six to nine months.

Financing

We are committed to financing our business in a manner consistent with maintaining an efficient balance sheet and optimising our cost of capital. Today, we are providing an interest cover metric that gives greater transparency on this commitment and we will report it annually at our full year results. This metric is based on adjusted funds from operations divided by adjusted interest expense: detailed definitions and worked examples will be available at www.nationalgrid.com. Taking into account the KeySpan acquisition, the sale of Wireless and Basslink, the return of £1.8bn to shareholders, and our future capital investment requirements, we expect to reduce interest cover and we aim to manage the long-term trend within a range of around 3.0 — 3.5 times.

National Grid
2007/08 Half Year Report

DIVIDEND AND SHARE BUY-BACK

The Board has approved an interim dividend of 11.7p per ordinary share ($1.2153 per American Depository share (ADS)), representing a 7% increase in the half-year dividend, in sterling. The interim dividend is to be paid on 23 January 2008 to shareholders on the register as at 30 November 2007.

Under our US rate plans, cash flows from stranded assets in our Electricity Distribution business are scheduled to end in 2011 and do not form part of our core on-going business. We are returning these cashflows to shareholders and therefore exclude them from our dividend policy. In May 2007, we extended this programme to return £1.8bn of proceeds from the sale of our Wireless businesses.

To date we have repurchased 140.8m shares at a cost of £1,042m (as at 30 September 2007 110.6m shares had been repurchased, at a cost of £805m). This completes the return of the US stranded asset post-tax cash flows for 2007/08. We are on track to return around a further £900m over the next six to twelve months, completing the return of £1.8bn following the sale of our Wireless businesses. The balance of stranded asset post-tax cash flows for 2008 to 2011 is estimated at around $1.4bn and will be returned via the buy-back programme in future years, as they arise. In future we intend to hold repurchased shares as treasury shares, up to a limit of 5% of issued share capital.

We maintain our aim to increase dividends per ordinary share expressed in sterling by 7% in each financial year through to 31 March 2008. We will be announcing our updated dividend policy later in the financial year, which will reflect the strong outlook for the earnings of the enlarged business.

OUTLOOK

National Grid’s outlook for the full year remains in line with our expectations.

In Transmission, we expect that the increase in UK regulated revenue will continue to be a major driver of performance; however, this benefit will be partially offset by timing of the collection of income resulting in a lower proportion of UK gas transmission allowed revenue falling in the second-half of this year, compared to the same period last year. We also expect US revenue to be higher at the full year, and together, these benefits will more than offset lower revenues from our French interconnector and LNG storage businesses, and continued higher depreciation charges.

Gas Distribution operating profit for the full year is expected to be driven by the increased UK allowed revenue following the one-year regulatory price control which came into effect on 1 April 2007, allowed revenue under recovered in 2006/07, and a full second half contribution from KeySpan’s gas businesses. Together, these items are expected to more than offset continued increases in workload related and pass-through costs.

In Electricity Distribution and Generation, we expect the timing of rate adjustments for pass through items to result in a negative variance compared to the prior year. This, together with continued increases in operating expenditure under our reliability enhancement plan, and the absence of a one-off pensions related benefit in 2006/07, is expected to more than offset a positive year-on-year variance arising from the absence of costs associated with major snow and ice storms in the Buffalo and Albany areas in 2006/07.

Our principal risks over the next six months remain as stated in our 2006/07 Annual Report and Accounts on pages 27, 84 and 85.

National Grid
2007/08 Half Year Report

BASIS OF PRESENTATION

Unless otherwise stated, all financial commentaries are given on a business performance basis, at actual exchange rates. Business performance represents the results for continuing operations before exceptional items and mark-to-market remeasurements of commodity contracts and financial instruments that are held for economic hedging purposes but did not achieve hedge accounting. Commentary provided in respect of results after exceptional items and certain mark-to-market remeasurements is described as ‘statutory’.

REVIEW OF RESULTS AND FINANCIAL POSITION

Operating profit, excluding US stranded cost recoveries, was £1,039m, up 19% on the prior year (up 22% on a constant currency basis²). This was primarily driven by strong results in our Transmission and Gas Distribution businesses.

Net finance costs were £282m, 11% higher than the prior period, mainly as a result of a higher effective interest rate on net debt for the period and increased average net debt levels compared to the prior period. Profit before tax, excluding US stranded cost recoveries, was up 21% to £757m. The tax charge on profit, excluding US stranded cost recoveries, was £227m, £41m higher than the prior period. The effective tax rate for the period, including US stranded cost recoveries, was 32%.

Earnings, excluding US stranded cost recoveries, were up 21% on the prior period at £528m. On the same basis, earnings per share increased 23% from 16.1p in the first half of last year to 19.8p, reflecting our strong operating performance and the benefit of our share buy-back programme.

US stranded cost recoveries added 4.3p to earnings per share, with an operating profit of £190m (£114m after tax). Including this contribution, earnings per share for the period were 24.1p.

Exceptional items and remeasurements for continuing operations increased earnings by £141m after tax. These comprised a £169m deferred tax credit arising from a reduction in the UK corporation tax rate, restructuring costs of £79m (£47m after tax), a gain on disposal of a subsidiary of £8m (£5m after tax), a commodity remeasurement gain of £23m (£13m after tax), and a net financial instrument remeasurement gain of £18m (£1m gain after tax). After these items and minority interests, statutory earnings for continuing operations attributable to shareholders were £783m. Statutory basic earnings per share from continuing operations increased 43% to 29.4p, up from 20.6p in the prior period. Profit from discontinued operations was £1,613m after exceptional items and remeasurements, leading to statutory basic earnings per share of 90.0p.

National Grid’s operating cash flows from continuing operations, before exceptional items and taxation, were £27m lower than the prior period at £1,322m.

Organic investment in our continuing businesses increased by 39% to £1.5bn, primarily due to increased capital expenditure on new electricity and gas transmission infrastructure in the UK.

Our net debt rose to £16.3bn at 30 September 2007 compared with £11.8bn at 31 March 2007, mainly reflecting the acquisition of KeySpan, the sale of our Wireless and Basslink businesses, the return of £805m through our share buy-back programme, and the increased level of capital investment.

National Grid
2007/08 Half Year Report

REVIEW OF TRANSMISSION OPERATIONS

Summary results		Six months ended 30 September
(£m)		2007				2006				% change
Revenue and other operating income			1,545				1,474				5
Operating costs			(765	)			(794	)			4
Depreciation and amortisation			(206	)			(186	)			(11	)
Operating profit — actual exchange rate			574				494				16
Operating profit — constant currency			574				489				17

Operating profit by geographical segment		Six months ended 30 September
(£m, at constant currency)		2007				2006				% change
UK			501				427				17
US			73				62				18
Operating profit			574				489				17

Capital investment		Six months ended 30 September
(£m, at actual exchange rate)		2007				2006				% change
UK			826				534				55
US			44				44				—
Capital investment			870				578				51

Transmission delivered a very strong performance in this period. Operating profit increased to £574m, up 16%. This was primarily driven by a step up in UK regulated revenue following the five-year transmission price controls which came into effect on 1 April. Pricing changes in April resulted in a higher than normal proportion of our UK gas transmission allowed revenue being collected in the first half, and together, these benefits resulted in a £108m increase in operating profit compared to the prior period. As expected, demand for French interconnector and LNG storage capacity returned closer to historical normal levels this period, resulting in a £36m decrease in revenues from those businesses. Depreciation charges were higher than in the prior period by £20m as a result of increasing capital investment. Other items increased operating profit by a net £33m compared to the prior period, with lower shrinkage gas costs more than offsetting higher ‘quasi-capex’³ and pass-through costs. Movement in exchange rates had a £5m period-on-period negative impact on operating profit.

Capital investment in Transmission increased by 51% on the prior period to £870m, mainly driven by new electricity and gas transmission load-related infrastructure in the UK. On 9 November, we completed commissioning of the 120km Milford Haven to Aberdulais gas transmission pipeline, making it available for commercial operation. The pipeline connects the two LNG terminals under construction at Milford Haven to the UK national gas transmission system and provides around 220GWh/day of capacity, which will rise to around 570GWh/day when the 196km second stage pipeline from Felindre in Wales to Tirley in Gloucestershire is completed. This second stage is on schedule for commercial operation in mid December 2007.

Looking ahead to the full year, we expect that the increase in UK regulated revenue will continue to be a major driver of performance; however, this benefit will be partially offset by timing of the collection of income resulting in a lower proportion of UK gas transmission allowed revenue falling in the second half of this year, compared to the same period last year. We also expect US revenue to be higher at the full year, and together, these benefits will more than offset lower revenues from our French interconnector and LNG storage businesses, and continued higher depreciation charges.

National Grid
2007/08 Half Year Report

REVIEW OF GAS DISTRIBUTION OPERATIONS

Summary results		Six months ended 30 September
(£m)		2007				2006				% change
Revenue and other operating income			849				608				40
Operating costs			(569	)			(414	)			(37	)
Depreciation and amortisation			(114	)			(94	)			(21	)
Operating profit — actual exchange rate			166				100				66
Operating profit — constant currency			166				98				69

Operating profit by geographical segment		Six months ended 30 September
(£m, at constant currency)		2007				2006				% change
UK			167				71				135
US			(1	)			27				*
Operating profit			166				98				69

Capital investment		Six months ended 30 September
(£m, at actual exchange rate)		2007				2006				% change
UK			251				218				15
US			48				18 1				67
Capital investment			299				236				27

     * Not meaningful.

Operating profit from Gas Distribution was up 66%, at £166m. Net formula income in the UK was up £121m. Of this, £75m related to changes in our pricing formula, which this year is less dependent on delivery volumes, and results in a greater proportion of our allowed revenue being collected in the first half. The remaining £46m mainly related to the 9% (average) price increase in October 2006. Revenue in our US gas business is linked to delivery volumes, and this results in a seasonal bias with lower revenue recovery in the first half of the year. This period, we have a full first half of operations in our Rhode Island gas business (following its acquisition in August 2006) and one month of operations from KeySpan’s gas businesses, which, with revenue weighted to the second half, resulted in a £17m negative impact on operating profit compared to the prior period. Other items, mainly increased pass-through costs and depreciation charges, resulted in a net negative impact of £36m on operating profit. Period-on-period movement in exchange rates reduced operating profit by £2m.

During the period our gas distribution alliance partnerships in the UK have replaced 992km of gas mains, resulting in total replacement expenditure (repex) of £177m. We have also continued to invest in network infrastructure projects in the UK and US, resulting in total capital expenditure (including repex) of £299m.

Operating profit for the full year is expected to be driven by the increased UK allowed revenue following the one-year regulatory price control which came into effect on 1 April 2007, allowed revenue under recovered in 2006/07, and a full second-half contribution from KeySpan’s gas businesses. Together, these items are expected to more than offset continued increases in workload related and pass-through costs.

In the UK, we are in the final stages of discussion with Ofgem on the regulatory price control for our gas distribution networks for the five years to March 2013. In September, we received Ofgem’s updated proposals, and while progress has been made in some areas since Ofgem published its initial proposals in May, we believe that Ofgem’s proposed operating cost allowances will only deliver ‘bare-minimum’ networks. We continue to work closely with Ofgem ahead of the publication of its final proposals, expected on 3 December 2007, to ensure that this business earns acceptable returns. In the US, we are currently preparing three gas rate plan filings for our upstate New York gas network, our Rhode Island gas network, and our New Hampshire gas network.

National Grid
2007/08 Half Year Report

REVIEW OF ELECTRICITY DISTRIBUTION AND GENERATION OPERATIONS

Summary results		Six months ended 30 September
(£m)		2007				2006				% change
Revenue and other operating income			1,446				1,530				(5	)
Operating costs			(1,182	)			(1,243	)			5
Depreciation and amortisation			(68	)			(65	)			(5	)
Operating profit — actual exchange rate			196				222				(12	)
Operating profit — constant currency			196				206				(5	)
Stranded cost recoveries — constant currency			190				187				2

Operating profit by principal activities		Six months ended 30 September
(£m, at constant currency)		2007				2006				% change
Electricity distribution			189				206				(8	)
Long Island T&D services			5				—				—
Long Island Generation			2				—				—
Operating profit			196				206				(5	)

Capital investment		Six months ended 30 September
(£m, at actual exchange rate)		2007				2006				% change
Electricity distribution			114				113				1
Long Island Generation			1				—				—
Capital investment			115				113				2

Operating profit from Electricity Distribution and Generation decreased by 12% during the period to £196m. Electricity distribution revenues, excluding pass-through commodity costs, increased by £11m compared to the prior year driven by indexing in our Massachusetts rate plan and increased demand, with weather normalised residential volumes up 0.2% on the prior period. Timing of rate adjustments for pass-through items led to a period-on-period benefit of £8m. Other items, including the absence of a one-off benefit in 2006/07, higher storm costs, a rise in bad debts, and increased reliability enhancement expense, more than offset a one-month contribution from KeySpan’s Generation and T&D services activities on Long Island, resulting in a net £29m decrease in operating profit. Movement in exchange rates had a £16m period-on-period negative impact on operating profit.

For the full year, we expect the timing of rate adjustments for pass through items to result in a negative variance compared to the prior year. This, together with continued increases in operating expenditure under our reliability enhancement plan, and the absence of a one-off benefit in 2006/07, is expected to more than offset a positive year-on-year variance arising from the non recurrence of costs associated with major snow and ice storms in the Buffalo and Albany areas in 2006/07. In accordance with our New York rate plan we make biannual filings to recover amounts recorded in the ‘deferral account’, and in August filed a forecast recoverable balance of around $270m as at 31 December 2009.

Our US stranded cost recoveries delivered £190m of operating profit. This was lower than the prior period, mainly reflecting the impact of the weaker dollar which had a £16m year-on-year negative impact. US stranded cost recoveries include certain contract settlements that have no net impact on cashflow. Post tax cashflow for the full year is expected to be around £150m — this has already been returned to shareholders as part of our share buy-back programme.

Capital expenditure was up slightly on the prior period at £115m. On 22 October, as agreed with the NYPSC, we filed a detailed five-year capital investment plan for electricity transmission and distribution in upstate New York. This plan calls for a minimum investment of $1.47bn and the potential to invest up to around $2.4bn. These investments are largely targeted at enhancing customer service by improving the reliability of our electricity system.

National Grid
2007/08 Half Year Report

REVIEW OF NON-REGULATED AND OTHER ACTIVITIES

Summary results		Six months ended 30 September
(£m)		2007				2006				% change
Revenue and other operating income			382				315				21
Operating costs			(201	)			(176) (				14	)
Depreciation and amortisation			(78	)			(79	)			1
Operating profit			103				60				72

Operating profit by principal activities		Six months ended 30 September
(£m, at actual exchange rate)		2007				2006				% change
Metering			60				54				11
Grain LNG			6				5				20
Property			62				32				94
Sub-total operating profit			128				91				41
Corporate and other activities			(25	)			(31	)			19
Operating profit			103				60				72

Capital investment		Six months ended 30 September
(£m, at actual exchange rate)		2007				2006				% change
Metering			72				80				(10	)
Grain LNG			97				45				116
Property			5				3				67
Other			12				—				—
Capital investment			186				128				45

Operating profit from our Non-regulated and other activities was 72% higher than the prior period at £103m, mainly reflecting higher than expected sales of land and property in the first half.

Metering operating profit was up 11% at £60m, mainly driven by growth in our competitive metering business. During the period, capital investment in this business decreased to £72m, with around 400,000 new meters installed, broadly in line with the prior period. In June 2005, Ofgem initiated an investigation under the Competition Act into certain aspects of our domestic gas metering business. In May 2006 and April 2007, Ofgem issued Statements of Objections detailing why it believed our conduct amounted to a breach under the Act. In October 2007, Ofgem issued a third document and their case against us has narrowed considerably — a decision from the Gas and Electricity Markets Authority is expected shortly. We remain confident that we have not infringed competition law.

Our Grain LNG business delivered an operating profit of £6m in the period. During the period capital investment in this business more than doubled to £97m, mainly reflecting construction of our Phase II capacity extension, which remains on track to be operational in late 2008. Phase III construction commenced in July, and will add a further LNG tank and a second unloading jetty, with completion planned in 2010. These investments are underpinned by long-term, take-or-pay contracts.

We are currently in discussions with the relevant regulatory bodies for consents for BritNed, a 50/50 joint venture with TenneT, the Dutch electricity transmission owner, to construct an electricity interconnector between the electricity transmission systems in the UK and the Netherlands. We expect to invest around £200m, with completion of the link planned in 2010.

Looking ahead, we will continue to focus on improving operational efficiency in these businesses, and capital investment in these niche areas within the UK and US electricity and gas markets will continue to be a key profit driver. In total, capital investment in our non-regulated activities is expected to reach around £1.9bn over the six years to March 2012.

National Grid
2007/08 Half Year Report

STATUTORY EARNINGS AND BUSINESS PERFORMANCE

(£m, at actual exchange rate)		Six months ended 30 September
		2007				2006				% change
Business performance earnings (exc. US stranded cost recoveries)			528				437				21
US stranded cost recoveries (after tax)			114				121				(6	)
Business performance earnings (inc. US stranded cost recoveries)			642				558				15
Exceptional items (after tax)			127				(11	)			*
Remeasurements (after tax)			14				14				*
Statutory earnings from continuing operations			783				561				40
Discontinued operations Profit before exceptional items & remeasurements (after tax)			21				33				*
Exceptional items & remeasurements (after tax)			1,592				—				*
Statutory earnings			2,396				594				*

Exceptional items in the period comprised a £169m deferred tax credit arising from a reduction in the UK corporation tax rate, partially offset by £71m (£42m after tax) of other items, mainly restructuring costs. In the prior period, exceptional items comprised restructuring costs of £16m (£11m after tax).

Remeasurements in the period comprised commodity remeasurement gains of £23m (£13m after tax) reflecting changes in the carrying value of certain commodity contract obligations, primarily index-linked swap contracts in the US, and a net financial instrument remeasurement gain of £18m (£1m after tax) reflecting movements in the carrying value of financial instruments, primarily derivatives, that arise from changes in mark-to-market values or in exchange rates and are reflected in the income statement to the extent that hedge accounting is not achieved or is not fully effective. In the prior period, remeasurements comprised commodity remeasurement gains of £36m (£22m after tax) and financial instrument remeasurement losses of £66m (£8m after tax).

After including exceptional items and remeasurements, statutory earnings from continuing operations in the period were £783m, compared with £561m for the same period last year, giving statutory earnings per share from continuing operations of 29.4p (2006: 20.6p).

Further details of exceptional items and remeasurements are given in Note 3 on page 19. A reconciliation of business performance (including US stranded cost recoveries of £190m, £114m after tax) to statutory results is provided in the consolidated income statement on page 12, and the impact of exceptional items and remeasurements on operating profit by business segment is provided in Note 2 on page 17.

Discontinued operations in the six months ended 30 September 2007 represented the results of our Ravenswood generating station (held for sale) and the results up to and profit on disposal of our Wireless infrastructure and Basslink businesses. After including these, statutory earnings for the period were £2,396m and earnings per share were 90.0p. Further details of discontinued operations are given in Note 6 on page 21.

BOARD CHANGES

During the period we announced three Board changes. Robert B. Catell joined the Board on 25 September, as Executive Director and Deputy Chairman. Robert was previously Chairman and Chief Executive Officer of KeySpan Corporation.

Tom King joined the Board on 13 August as an Executive Director. Tom is based in the US and has responsibility for the Electricity Distribution and Generation business.

Paul Joskow, one of our Non-executive Directors, stepped down from the Board on 31 July 2007.

National Grid
2007/08 Half Year Report

CONTACTS

National Grid:

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)
James Waite		+44 (0)20 7004 3171		+44 (0)7977 440902(m)
Media
Clive Hawkins		+44 (0)20 7004 3147		+44 (0)7836 357173(m)
Brunswick:		Paul Scott		+44 (0)20 7404 5959

An analyst presentation will be held at Deutsche Bank AG, 1 Great Winchester Street, London EC2N 2DB at 9:00am (UK time) today.

Live telephone coverage of the analyst presentation — password National Grid

Dial in number		+44 (0)20 7081 9429
US dial in number		+1 866 432 7186

Telephone replay of the analyst presentation (available until 30 November 2007)

Dial in number		+44 (0)20 8196 1998
US dial in number		+1 866 583 1039
Account number		527949

A live web cast of the presentation will also be available at www.nationalgrid.com

Photographs are available on www.newscast.co.uk

You can view or download copies of our latest Annual Report or the Annual Review from our website at www.nationalgrid.com/corporate/Investor+Relations/ or request a free printed copy by contacting investor.relations@ngrid.com.

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 such 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, 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 or recently completed acquisitions with National Grid’s existing business to realise the expected synergies from such integration, the availability of new acquisition opportunities and the timing and success of future acquisition opportunities, the timing and success or other impact of the sales of National Grid’s non-core businesses, 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). 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.

National Grid
2007/08 Half Year Financial Information

												Year ended
CONSOLIDATED INCOME STATEMENT												31 March
for the six months ended 30 September				2007				2006*				2007
		Notes		£m				£m				£m
Revenue		2a			4,260				3,982				8,695
Other operating income					52				27				83
Operating costs					(3,125	)			(2,899	)			(6,265	)
Operating profit
- Before exceptional items and remeasurements		2b			1,229				1,078				2,454
- Exceptional items and remeasurements		3			(42	)			32				59
Total operating profit		2c			1,187				1,110				2,513
Interest income and similar income		4			663				569				1,144
Interest expense and other finance costs
- Before exceptional items and remeasurements					(945	)			(822	)			(1,691	)
- Exceptional items and remeasurements		3			12				(78	)			(217	)
		4			(933	)			(900	)			(1,908	)
Share of post-tax results of joint ventures					—				2				2
Profit before taxation
- Before exceptional items and remeasurements					947				827				1,909
- Exceptional items and remeasurements		3			(30	)			(46	)			(158	)
Total profit before taxation					917				781				1,751
Taxation
- Before exceptional items and remeasurements		5			(303	)			(267	)			(611	)
- Exceptional items and remeasurements		3			171				49				170
Total taxation					(132	)			(218	)			(441	)
Profit from continuing operations after taxation
- Before exceptional items and remeasurements					644				560				1,298
- Exceptional items and remeasurements		3			141				3				12
Profit for the period from continuing operations					785				563				1,310
Profit for the period from discontinued operations after taxation
- Before exceptional items and remeasurements		6			21				33				104
- Exceptional items and remeasurements		6			1,592				—				(18	)
Profit for the period from discontinued operations					1,613				33				86
Profit for the period					2,398				596				1,396
Attributable to:
- Equity shareholders of the parent					2,396				594				1,394
- Minority interests					2				2				2
					2,398				596				1,396
Earnings per share from continuing operations
- Basic		7a			29.4p				20.6p				48.1p
- Diluted		7b			29.2p				20.5p				47.8p
Earnings per share
- Basic		7a			90.0p				21.8p				51.3p
- Diluted		7b			89.4p				21.7p				50.9p
Dividends per ordinary share: paid during the period		8			17.8p				15.9p				26.8p
Dividends per ordinary share: approved or proposed to be paid					11.7p				10.9p				28.7p

National Grid
2007/08 Half Year Financial Information

														At 31 March
CONSOLIDATED BALANCE SHEET at 30 September						2007				2006				2007
		Notes				£m				£m				£m
Non-current assets
Goodwill							3,774				2,170				1,480
Other intangible assets							297				319				144
Property, plant and equipment							22,939				19,308				18,895
Investments in joint ventures							7				9				5
Deferred tax assets							—				56				—
Other receivables							486				51				36
Pension asset							617				—				37
Financial and other investments							249				137				132
Derivative financial assets							630				333				380
Total non-current assets							28,999				22,383				21,109
Current assets
Other intangible assets							2				24				2
Inventories							535				165				106
Trade and other receivables							1,600				1,186				1,236
Financial and other investments							1,849				806				2,098
Derivative financial assets							220				301				277
Cash and cash equivalents							355				2,320				1,593
Total current assets							4,561				4,802				5,312
Assets of businesses held for sale							1,017				—				1,968
Total assets							34,577				27,185				28,389
Current liabilities
Bank overdrafts							(16	)			(11	)			(6	)
Borrowings							(2,802	)			(1,479	)			(1,025	)
Derivative financial liabilities							(59	)			(328	)			(235	)
Trade and other payables							(2,225	)			(1,709	)			(1,852	)
Current tax liabilities							(166	)			(303	)			(75	)
Provisions							(164	)			(202	)			(167	)
Total current liabilities							(5,432	)			(4,032	)			(3,360	)
Non-current liabilities
Borrowings							(16,242	)			(13,415	)			(14,686	)
Derivative financial liabilities							(246	)			(177	)			(184	)
Other non-current liabilities							(1,679	)			(1,630	)			(1,475	)
Deferred tax liabilities							(3,086	)			(2,042	)			(2,389	)
Pensions and other post-retirement benefit obligations							(1,537	)			(2,076	)			(1,282	)
Provisions							(746	)			(511	)			(427	)
Total non-current liabilities							(23,536	)			(19,851	)			(20,443	)
Liabilities of businesses held for sale							(36	)			—				(450	)
Total liabilities							(29,004	)			(23,883	)			(24,253	)
Net assets							5,573				3,302				4,136
Equity
Called up share capital							298				310				308
Share premium account							1,371				1,324				1,332
Retained earnings							9,156				6,753				7,635
Other reserves							(5,270	)			(5,097	)			(5,150	)
Total parent company shareholders’ equity							5,555				3,290				4,125
Minority interests							18				12				11
Total equity			10				5,573				3,302				4,136
Net debt (net of related derivative financial instruments) included above			12				16,311				11,650				11,788

National Grid
2007/08 Half Year Financial Information

										Year ended
CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE										31 March
for the six months ended 30 September		2007				2006				2007
		£m				£m				£m
Exchange adjustments			(73	)			(130	)			(179	)
Actuarial gains/(losses)			561				(350	)			365
Net (losses)/gains taken to equity in respect of cash flow hedges			(33	)			3				47
Transferred to profit or loss on cash flow hedges			(4	)			(10	)			(45	)
Net gains/(losses) taken to equity on available-for-sale investments			2				(3	)			(3	)
Transferred to profit or loss on sale of available-for-sale investments			—				(1	)			(1	)
Tax on items taken directly to or transferred from equity			(175	)			118				(81	)
Net income/(expense) recognised directly in equity			278				(373	)			103
Profit for the period			2,398				596				1,396
Total recognised income and expense for the period			2,676				223				1,499
Attributable to:
- Equity shareholders of the parent			2,675				222				1,498
- Minority interests			1				1				1
			2,676				223				1,499

National Grid
2007/08 Half Year Financial Information

										Year ended
CONSOLIDATED CASH FLOW STATEMENT										31 March
for the six months ended 30 September		2007				2006*				2007
		£m				£m				£m
Cash flows from operating activities
Total operating profit			1,187				1,110				2,513
Adjustments for:
Exceptional items and remeasurements			42				(32	)			(59	)
Depreciation and amortisation			461				424				871
Share-based payment charge			9				7				15
Changes in working capital and provisions			(182	)			(62	)			(39	)
Changes in pensions and other post-retirement benefit obligations			(195	)			(98	)			(125	)
Cash flows relating to exceptional items			(66	)			(36	)			(86	)
Cash flows generated from continuing operations			1,256				1,313				3,090
Cash flows relating to discontinued operations			11				69				181
Cash generated from operations			1,267				1,382				3,271
Tax paid — continuing operations			(136	)			(198	)			(310	)
Tax paid — discontinued operations			—				—				(3	)
Net cash inflow from operating activities			1,131				1,184				2,958
Cash flows from investing activities
Acquisition of subsidiaries (net of cash acquired) and other investments			(3,513	)			(269	)			(269	)
Sale of investments in subsidiaries, joint ventures and other investments			18				—				19
Purchases of intangible assets			(20	)			(5	)			(33	)
Purchases of property, plant and equipment			(1,369	)			(1,156	)			(2,185	)
Disposals of property, plant and equipment			13				6				21
Net movements in financial investments			278				(432	)			(1,725	)
Cash flows used in continuing operations — investing activities			(4,593	)			(1,856	)			(4,172	)
Cash flows relating to discontinued operations
- disposal proceeds			3,065				42				27
- other investing activities and acquisition of subsidiaries, net of cash acquired			(2	)			(23	)			(132	)
Net cash flow used in investing activities			(1,530	)			(1,837	)			(4,277	)
Cash flows from financing activities
Proceeds from issue of ordinary share capital			13				8				16
Increase in borrowings and related derivatives			647				2,238				3,019
Net interest paid			(249	)			(291	)			(597	)
Exceptional finance costs on the repayment of debt			—				—				(45	)
Dividends paid to shareholders			(480	)			(433	)			(730	)
Repurchase of share capital and purchase of treasury shares			(796	)			—				(169	)
Net cash flow (used in)/from financing activities			(865	)			1,522				1,494
Net movement in cash and cash equivalents			(1,264	)			869				175
Exchange movements			(7	)			(9	)			(14	)
Amounts related to businesses held for sale			23				—				(23	)
Net cash and cash equivalents at start of period (i)			1,587				1,449				1,449
Net cash and cash equivalents at end of period (i)			339				2,309				1,587

i)

Net of bank overdrafts.

National Grid
2007/08 Half Year Financial Information

NOTES TO THE 2007/08 HALF YEAR FINANCIAL INFORMATION

1. Basis of preparation

The half year financial information covers the six month period ended 30 September 2007 and has been prepared under International Financial Reporting Standards (“IFRS”) as adopted by the European Union, in accordance with International Accounting Standard 34 ‘Interim Financial Reporting’ and the Disclosure and Transparency Rules of the Financial Services Authority. It is unaudited but has been reviewed by the auditors and their report is attached to this document.

The half year financial information does not constitute statutory accounts as defined in Section 240 of the Companies Act 1985. It should be read in conjunction with the statutory accounts for the year ended 31 March 2007, which were prepared in accordance with IFRS as adopted by the European Union and have been filed with the Registrar of Companies. The auditors’ report on these statutory accounts was unqualified and did not contain a statement under Section 237(2) or (3) of the Companies Act 1985.

Accounting policies

This half year financial information has been prepared on the basis of the accounting policies applicable for the year ending 31 March 2008. These accounting policies are consistent with those that applied in the preparation of our accounts for the year ended 31 March 2007, except as set out below:

a)		Following the acquisition of KeySpan, our activities now include electricity generation and our accounting policies have been expanded to cover these activities. The primary change is to include an accounting policy for revenue from electricity generation, which represents the sales value of energy and related services supplied to customers.
b)		Interpretations issued by the International Financial Reporting Interpretations Committee (“IFRIC”) that have been adopted during the period, are as follows:

	•		IFRIC 8 Scope of IFRS 2 ‘Share-Based Payment’
	•		IFRIC 9 Reassessment of embedded derivatives
	•		IFRIC 10 Interim financial reporting and impairments
	•		IFRIC 11 Group and treasury share transactions

The adoption of these interpretations had no significant impact on the financial results or position of the Company and its subsidiary undertakings for the six months ended 30 September 2007 or for previous periods.

The following standards, amendments and interpretations have been issued by the International Accounting Standards Board or by the IFRIC, but have not yet been adopted. Subject to endorsement by the European Union, we expect to adopt them in future periods.

	•		IFRS 8 Operating segments
	•		Amendment to IAS 23 Borrowing costs
	•		Amendments to IAS 1 Presentation of financial statements
	•		IFRIC 12 Service concession arrangements
	•		IFRIC 13 Customer loyalty programmes
	•		IFRIC 14 Defined benefit assets and minimum funding requirements

Changes in comparative presentation as a consequence of discontinued operations

During the second half of the year ended 31 March 2007 our then wireless infrastructure operations in the UK and the US and the Basslink Interconnector in Australia met the necessary criteria to be classified as businesses held for sale and as discontinued operations. As a consequence, the comparative income statement for the six months ended 30 September 2006 has been amended to reflect the classification of these operations as discontinued.

Date of approval

This announcement was approved by the Board of Directors on 14 November 2007.

National Grid
2007/08 Half Year Financial Information

2. Segmental analysis

Segmental information is presented in accordance with the management responsibilities and economic characteristics, including consideration of risks and returns, of business activities. The Company assesses the performance of its businesses principally on the basis of operating profit before exceptional items and remeasurements. The primary reporting format is by business and the secondary reporting format is by geographical area. The following table describes the main activities for each business segment:

Transmission — UK		High voltage electricity transmission networks, the gas transmission network in the UK, UK liquefied natural gas (LNG) storage activities and the French electricity interconnector
Transmission — US		High voltage electricity transmission networks in New York and New England
Gas Distribution — UK		Four of the eight regional networks of Great Britain’s gas distribution system
Gas Distribution — US		Gas distribution in New York and New England
Electricity Distribution and Generation — US		Electricity distribution in New York and New England and electricity generation in New York
US stranded cost recoveries		The recovery of stranded costs from US electricity distribution customers as permitted by regulatory agreements

Other activities primarily relate to non-regulated businesses and other commercial operations not included within the above segments, including UK-based gas metering activities; UK property management; a UK LNG import terminal; a British-Netherlands electricity interconnector under construction; other LNG operations; unregulated transmission pipelines; engineering and home services; together with corporate activities, including business development.

Discontinued operations comprise wireless infrastructure and communications operations in the UK and the US, an electricity interconnector in Australia, and merchant electricity generation operations in New York City. The wireless infrastructure operations in the UK were sold on 3 April 2007; the US wireless operations were sold on 15 August 2007; and the Basslink electricity interconnector in Australia was sold on 31 August 2007. Results of discontinued operations are disclosed in note 6.

Our segments are unchanged from those reported in the financial statements for the year ended 31 March 2007, except for our US Electricity Distribution segment, which as a consequence of the acquisition of KeySpan on 24 August 2007 has been expanded to incorporate the operations of KeySpan’s generation business and is now reported as ‘Electricity Distribution and Generation - US’.

The comparative segment results for the six month period ended 30 September 2006 have been amended to reflect changes to reportable segments that were made in the second half of the year ended 31 March 2007 resulting from a new organisational and management structure. The main changes were the elimination of the wireless infrastructure segment and the division of our former US electricity and gas distribution segment in two separate segments.

Sales between businesses are priced having regard to the regulatory and legal requirements to which the businesses are subject.

a)

Revenue

										Year ended
										31 March
Six months ended 30 September		2007				2006*				2007
		£m				£m				£m
Business segments — continuing operations
Transmission — UK			1,392				1,323				2,816
Transmission — US			153				151				270
Gas Distribution — UK			547				447				1,193
Gas Distribution — US			302				157				638
Electricity Distribution and Generation — US			1,446				1,530				3,004
US stranded cost recoveries			195				205				426
Other activities			330				292				567
Sales between businesses			(105	)			(123	)			(219	)
Revenue			4,260				3,982				8,695
Total excluding US stranded cost recoveries			4,065				3,777				8,269
US stranded cost recoveries			195				205				426
			4,260				3,982				8,695
Geographical segments
UK			2,182				1,962				4,397
US			2,078				2,020				4,298
Revenue			4,260				3,982				8,695

National Grid
2007/08 Half Year Financial Information

2.

Segmental analysis (continued)

b)

Operating profit — before exceptional items and remeasurements

										Year ended
										31 March
Six months ended 30 September		2007				2006*				2007
		£m				£m				£m
Business segments — continuing operations
Transmission — UK			501				427				946
Transmission — US			73				67				108
Gas Distribution — UK			167				71				409
Gas Distribution — US			(1	)			29				71
Electricity Distribution and Generation — US			196				222				364
US stranded cost recoveries			190				202				423
Other activities			103				60				133
Operating profit before exceptional items and remeasurements			1,229				1,078				2,454
Total excluding US stranded cost recoveries			1,039				876				2,031
US stranded cost recoveries			190				202				423
			1,229				1,078				2,454
Geographical segments
UK			773				559				1,491
US			456				519				963
Operating profit before exceptional items and remeasurements			1,229				1,078				2,454

c)

Operating profit — after exceptional items and remeasurements

										Year ended
										31 March
Six months ended 30 September		2007				2006*				2007
		£m				£m				£m
Business segments — continuing operations
Transmission — UK			499				420				936
Transmission — US			67				67				107
Gas Distribution — UK			166				66				412
Gas Distribution — US			(20	)			27				67
Electricity Distribution and Generation — US			155				221				355
US stranded cost recoveries			209				250				504
Other activities			111				59				132
Operating profit after exceptional items and remeasurements			1,187				1,110				2,513
Total excluding US stranded cost recoveries			978				860				2,009
US stranded cost recoveries			209				250				504
			1,187				1,110				2,513
Geographical segments
UK			779				546				1,482
US			408				564				1,031
Operating profit after exceptional items and remeasurements			1,187				1,110				2,513

National Grid
2007/08 Half Year Financial Information

2.		Segmental analysis (continued)
d)		Seasonality

The gas distribution segment experiences seasonal fluctuations owing to weather conditions and peak delivery volumes occurring in the third and fourth quarters of the year. In the UK an adjustment to our pricing methodology has increased the capacity delivery component in our pricing and has decreased this seasonal bias. This resulted in an increase in revenue and operating profit in the Gas Distribution — UK segment for the six months ended 30 September 2007 compared with 2006.

3.

Exceptional items and remeasurements

Exceptional items and remeasurements are items of income and expenditure that, in the judgment of management, should be disclosed separately on the basis that they are material, either by their nature or their size, to an understanding of our financial performance and significantly distort the comparability of financial performance between periods. Items of income or expense that are considered by management for designation as exceptional items include such items as significant restructurings, write-downs or impairments of non-current assets, material changes in environmental or decommissioning provisions, integration of acquired businesses and gains or losses on disposals of businesses or investments. Remeasurements comprise gains or losses recorded in the income statement arising from changes in the fair value of commodity contracts and of derivative financial instruments to the extent that hedge accounting is not achieved or is not effective.

										Year ended
										31 March
Six months ended 30 September		2007				2006				2007
		£m				£m				£m
Exceptional items — restructuring costs (i)			(79	)			(16	)			(22	)
Exceptional items — gain on disposal of subsidiary (ii)			8				—				—
Remeasurements — commodity contracts (iii)			29				48				81
Total exceptional items and remeasurements included within operating profit			(42	)			32				59
Exceptional items — debt restructuring costs (iv)			—				—				(45	)
Remeasurements — commodity contracts (iii)			(6	)			(12	)			(19	)
Remeasurements — net gains/(losses) on derivative financial instruments (v)			18				(66	)			(153	)
Total exceptional items and remeasurements included within finance costs			12				(78	)			(217	)
Total exceptional items and remeasurements before taxation			(30	)			(46	)			(158	)
Exceptional item — deferred tax credit arising from reduction in UK tax rate (vi)			169				—				—
Tax on exceptional items — restructuring costs (i)			32				5				12
Tax on exceptional items — disposal of subsidiary (ii)			(3	)			—				—
Tax on exceptional items — debt restructuring costs (iv)			—				—				14
Tax on remeasurements — commodity contract remeasurements (iii)			(10	)			(14	)			(25	)
Tax on remeasurements — derivative financial instruments (v)			(17	)			58				169
Exceptional tax item and tax on exceptional items and remeasurements			171				49				170
Total exceptional items and remeasurements after taxation			141				3				12
Total exceptional items after taxation			127				(11	)			(41	)
Total commodity contract remeasurements after taxation			13				22				37
Total derivative financial instrument remeasurements after taxation			1				(8	)			16
Total exceptional items and remeasurements after taxation			141				3				12