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:           18 December 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.

 

 

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.

 

 

 

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

 

 

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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: 18 December 2007

 

 

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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 18 December 2007

 

National Grid plc

1-3 Strand

London, WC2N 5EH, United Kingdom

 

 

 

 

 

 

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18 December 2007

 

 

National Grid plc

UK Gas Distribution Regulatory Price Controls: Final Proposals

 

National Grid has today accepted in principle Ofgem’s final proposals for the Gas Distribution Price Control for the five years from 1 April 2008.

 

Steve Holliday, Chief Executive, said:

 

“We are pleased that Ofgem have moved in all areas since September, and we believe that the proposals, although presenting real challenges in meeting the operating cost assumptions, now offer an acceptable balance of risk and reward.

 

“As a result of this review, investment in our gas distribution networks in the UK will be significantly higher than in previous regulatory periods. We are confident that we can deliver this investment and manage our networks in a safe, efficient and reliable way, while providing a superior return for investors.

 

“National Grid operates under 20 main regulatory controls – completing this review means that we now have 17 of them in place for the coming period and we believe that this regulatory stability leads to a lower risk profile and greater visibility for our business.”

 

National Grid will now work closely with Ofgem on the formal licence modifications.

 

 

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