Document:

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                                                                   EXHIBIT 10(m)

                                 DATED 30/11/94

                          THE NATIONAL GRID COMPANY PLC

                                     - and -

                                 JEFFREY A SCOTT

                             CONTRACT OF EMPLOYMENT

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                                INDEX TO CLAUSES

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<CAPTION>
CLAUSE NO TITLE                                                          PAGE NO
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<S>                                                                      <C>
1.      Appointment and Term Duties

2.      Duties

3.      Salary

4.      Pension

5.      Insurance Benefits

6.      Professional Fees

7.      Car

8.      Expenses

9.      Holidays

10.     Sickness and Injury

11.     Interests in other Businesses

12.     Confidentiality

13.     Protection of Interests of Company

14.     Termination

15.     Waiver of Rights

16.     Discipline and Grievances

17.     Inventions

18.     Interpretation

19.     Entire Contract Continuity and Conditionality

20.     Notices

21.     Jurisdiction
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THIS CONTRACT OF EMPLOYMENT MADE ON 30 NOVEMBER 1994 BETWEEN:

(1)      THE NATIONAL GRID COMPANY plc whose registered office is at National
         Grid House, Kirby Corner Road, Coventry, CV4 8JY (the "Company")

and

(2)      JEFFREY ALAN SCOTT               of                 12 Barrow Hall Farm
                                                             Great Barrow
                                                             Chester
                                                             CH3 7L T

1.       APPOINTMENT AND TERM

1.1      You will be employed by the Company as Acting General Manager -
         Commercial Co-ordinator (Flotation), reporting to the Group Director,
         Engineering until 1 April 1995 when you will be employed as Acting
         Genera! Manager - Commercial Development, reporting to the Group
         Director, Power Network Business.

1.2      This contract is deemed to commence on 1 December 1994 and will
         continue, subject to the further provisions of this contract, until
         terminated by either party giving to the other not less than twelve
         months previous notice in writing.

1.3      Your previous employment with any Existing Body counts as part of your
         continuous employment with the Company and your period of continuous
         service began on 2 December 1974.

2.       DUTIES

2.1      During the continuance of your employment, you will:

                  A        perform such duties as may from time to time be
                           reasonably assigned to you whether those duties
                           relate to the business of the Company or to the
                           business of any of its Subsidiaries or Associates
                           (including the holding of offices therein);

                  B        in all respects comply with all lawful directions
                           given by or under the authority of the Company;

                  C        use your best endeavours to promote, develop and
                           extend the business and the interests of the Company;

                  D        unless prevented by sickness or injury and except
                           during holidays,

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                           devote the whole of your time, attention and ability
                           during the agreed hours of work to the performance of
                           your duties under this Contract.

2.2      Your normal hours of work total 37 hours per week. However, you will be
         expected to work such other hours as may be required for the proper
         performance of your duties and you will not be entitled to receive
         additional remuneration for work over and above normal hours.

2.3      You will initially be based at Bala House, Deeside, Clwyd, until 1
         April 1995, when, upon taking up your duties as General Manager -
         Commercial Development, you will based at National Grid House,
         Coventry. You will be expected to relocate to Coventry at that time and
         the Company's relocation provisions will apply.

2.4      The Company reserves the right to appoint you to any of its UK offices.
         In the event that such an appointment is made, or should the particular
         Company premises to which you are assigned be relocated, you shall be
         entitled to reimbursement of reasonable relocation expenses in
         accordance with the Company's policy thereon from time to time.

3.       SALARY

3.1      During the continuance of your employment, you will be entitled to a
         salary at the rate of (pound)60,000 per annum until 1 April 1995, when,
         upon taking up your duties as Acting General Manager - Commercial
         Development, your salary will be increased to (pound)70,000 per annum
         (or such higher rate as may from time to time be agreed between the
         parties).

3.2      Your salary will accrue from day to day, be payable by equal monthly
         instalments on or before the last day of each month, and be inclusive
         of any remuneration to which you may be or become entitled as a holder
         of any office of the Company or of any of its subsidiaries or
         associates for the time being.

3.3      The salary referred to at Clause 3.1 above shall be reviewed annually.

3.4      In addition to your salary you will be entitled to participate in the
         Company's bonus scheme. Any payments made under the scheme are
         non-pensionable.

3.5      You will be invited to participate in a share option or other employee
         share schemes at the discretion of the Company.

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4.       PENSION

4.1      In this Clause the "ESPS" means the Electricity Supply Pension Scheme
         and words used in this Clause have the same meaning as they have under
         the provisions of the ESPS.

4.2      Subject to the terms and conditions (both statutory and non-statutory)
         in force from time to time in respect of the ESPS Group in which the
         Company participates or of which it is Principal Employer, you will be
         entitled to retain your Membership of the ESPS.

4.3      The Company provides enhanced pension benefits for executives
         (including General Managers), as summarised in schedule 1. Details
         relating to your personal position will be forwarded at a later date.

4.4      A Contracting-out certificate is in force in respect of your
         employment.

5.       INSURANCE BENEFITS

5.1      The Company will provide you, your spouse and dependent children,
         whilst you are employed under this Contract with membership of a
         private medical expenses scheme.

5.2      The Company will provide you with personal accident insurance, whilst
         employed under this Contract, in accordance with the Company's scheme.

6.       PROFESSIONAL FEES

6.1      The Company will re-imburse you in full for professional subscriptions
         for relevant qualifications.

7.       CAR

7.1      The Company will provide you with a suitable car during the continuance
         of your employment in accordance with the policy laid down by the
         Company from time to time and the Company shall pay all costs relating
         to it (including the cost of fuel for private mileage). You shall
         comply with all rules laid down by the Company from time to time in
         relation to Company vehicles and, unless otherwise agreed, shall return
         the car on termination of your employment.

8.       EXPENSES

8.1      You will be reimbursed with all reasonable travelling, hotel and other
         expenses properly incurred by you in the performance of your duties
         under this Contract,

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         subject to you providing the Company with receipts or other evidence as
         shall be required, of payment of the said expenses. The Company will
         also reimburse rental and cost of business calls in respect of your
         home telephone.

9.       HOLIDAYS

9.1      You will be entitled to thirty working days' holiday in each Holiday
         Year to be taken at such times as may be approved by the Chief
         Executive, in addition to fixed public holidays and three other
         additional days holidays, some or all of which may be fixed by the
         Company from time to time. Holidays may not be carried forward from one
         Holiday Year to the next. No payment will be made by the Company during
         the continuance of this Contract in lieu of holidays not taken.

9.2      Upon termination of this Contract for whatever mason, you shall be
         entitled to payment in lieu on a pro rata basis for any holidays not
         taken which have accrued in the Holiday year, including the Date of
         Termination or, if appropriate, you shall repay to the Company any
         salary received in respect of holiday taken prior to the Date of
         Termination in excess of your proportionate entitlement.

10.      SICKNESS AND INJURY

10.1     If you are absent from work as a result of sickness or injury you will:

                  A        notify the Company by telephone on the first day of
                           your absence or in the event of being unable to do
                           so, as soon as practicable thereafter;

                  B        if the period of absence is less than 8 consecutive
                           calendar days, submit to the Company on your return a
                           certificate of sickness completed by yourself;

                  C        if it is 8 consecutive calendar days or more, submit
                           to the Company without delay a medical certificate
                           signed by a practising medical practitioner in
                           respect of each week of absence after the first;

                  D        You will, on request by the Company, allow yourself
                           to be examined by the Company's doctor, who shall
                           report to the Chief Executive.

10.2     You will, subject to compliance with sub-clause 9.1 above and to Clause
         13 below, be entitled to:

                  A        payment of salary at the full basic rate and maintain
                           other contributions and benefits (less any social
                           security or other benefits payable to you) during any
                           period of absence from work as a result
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                           of sickness or injury up to a maximum of a continuous
                           period of 180 days or 130 working days in aggregate
                           in any 12 consecutive months;

                  B        payment of salary at half the full basic rate in
                           addition to other contributions and benefits (less
                           any social security or other benefits payable to you)
                           during any such periods of absence in excess of a
                           continuous period of 180 days or 130 working days in
                           aggregate in any 12 consecutive months;

         but you will not be entitled to any payment of salary during any
         absence in excess of 12 months.

10.3     The Company will pay statutory sick pay, where appropriate, in
         accordance with the legislation in force at the time of absence, and
         any payment of salary in accordance with this Clause will go towards
         discharging its liability to pay statutory sick pay.

11.      INTERESTS IN OTHER BUSINESSES

11.1     You shall disclose promptly in writing to the Company all your
         interests and those of your spouse and dependent children, in any
         business other than the business of the Company and its Subsidiaries
         and Associates and, save with the written consent of the Company (such
         consent not to be unreasonably withheld), you will not during the
         continuance of your employment accept any directorships and will not be
         engaged or interested (except as the holder for investment purposes of
         shares or other securities quoted or dealt in on a Recognised Stock
         Exchange not exceeding (in any case) 3 per cent of the class of
         securities of the company concerned) either directly or indirectly in
         any business or commercial occupation other than the business of the
         Company and its Subsidiaries and Associates.

11.2     You shall comply with any code or regulations issued by the Company
         from time to time relating to securities transactions by employees.

12.      CONFIDENTIALITY

12.1     You will not during the continuance of your employment or afterwards
         (unless authorised to do so by the Company or by a court of competent
         jurisdiction):

                  A        use for your own benefit or the benefit of any other
                           person; or

                  B        disclose to any person, any trade secrets or other
                           confidential information relating to the business,
                           affairs, finances, products or processes of the
                           Company and/or of any of its Subsidiaries or
                           Associates.

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12.2     The restriction in this Clause will not prevent you after the Date of
         Termination, from using for your own or another's benefit, any
         information which:

                  A        by virtue of your employment, becomes part of your
                           own skill and knowledge; and

                  B        apart from the provisions of this Contract, could
                           lawfully be used by you for that purpose, and In this
                           respect you acknowledge without limitation the
                           restrictions in Section 57 of the Electricity Act
                           1989.

13.      PROTECTION OF INTERESTS OF COMPANY

13.1     Until the expiration of 12 months from the Date of Termination, you
         will not directly or indirectly solicit or entice away or endeavour to
         entice away from the Company, or any of its Subsidiaries or Associates,
         any of the Company's employees.

13.2     After the Date of Termination or, the date of your ceasing to be an
         employee of the Company, you will not represent yourself or permit
         yourself to be held out as being in any way connected with or
         interested in the business of the Company; and after such date you will
         not represent yourself or permit yourself to be held out as being in
         any way connected with the business of any of the Subsidiaries or
         Associates of the Company, except if and for so long as you remain an
         employee of that Subsidiary or Associate.

13.3     It is your obligation to ensure you take no action and make no
         statement (or omit to take any action or make any statement) which
         constitutes unlawful discrimination whether under the Sex
         Discrimination Act 1975 or the Race Relations Act 1976 or otherwise.

13.4     You are required to comply with the provisions of the legislation on
         health and safety and working conditions. You are further required to
         do your utmost to ensure that the Company, and any of its Subsidiaries
         or Associates, comply with such health and safety legislation, all
         legislation concerning their areas of activity and generally with all
         legal obligations affecting the Company, or any of its Subsidiaries or
         Associates.

13.5     In this Clause references to acting directly or indirectly include
         (without prejudice to the generality of that expression) references to
         acting alone or jointly with or by means of any other person.

14.      TERMINATION

14.1     If you have given notice to terminate this Contract, the Company shall
         have the right during the notice period or in circumstances where no
         notice has been given by yourself the Company shall have the same right
         for a period not exceeding

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         twelve months to relieve you of all your duties and responsibilities
         under this Contract, exclude you from your place of work and/or require
         you to resign forthwith all offices held in the Company, its
         Subsidiaries or Associates or any other appointment held as nominee or
         representative of any of the foregoing.

14.2     Without prejudice to the Company's right to summarily dismiss you for
         gross misconduct, the Company will be entitled to terminate your
         employment without notice if you:

                  A        commit a serious or persistent breach of any term of
                           this Contract;

                  B        Bare guilty of conduct tending to bring yourself or
                           the Company or any of its Subsidiaries or Associates
                           into disrepute;

                  C        become bankrupt or compound with your creditors; or

                  D        are convicted of any arrestable criminal offence
                           (other than an offence under road traffic legislation
                           in the United Kingdom or elsewhere for which a fine
                           or non-custodial penalty is imposed).

14.3     If you are incapacitated by sickness (including mental disorder) or
         injury from carrying out your duties under this Contract for a
         continuous period of 180 days or for an aggregate of 130 working days
         in any 12 consecutive months, the Company will be entitled to terminate
         this Contract by not less than 6 months' written notice given within 6
         months after the end of the 180 or (as the case may be) 130 working
         days.

14.4     On the Date of Termination you will promptly:

                  A        resign (if you have not already done so) from all
                           offices held by you in the Company and its
                           Subsidiaries and Associates;

                  B        deliver up to the Company all lists of customers,
                           correspondence, documents, discs, tapes, data
                           listing, codes, designs, drawings and all other
                           materials and property belonging to the Company or
                           any of its Subsidiaries or Associates which may be in
                           your possession or under your control, including any
                           copies; and

                  C        deliver up to the Company forthwith any car provided
                           under this Contract;

         and you will irrevocably authorise the Company in your name and on your
         behalf to execute all documents and do all things necessary to effect
         the resignations referred to above, in the event of your failure to do
         so.

14.5     Any termination of your employment will be without prejudice to your
         continuing

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         obligations under this Agreement.

15.      WAIVER OF RIGHTS

15.1     If:

                  A        your employment is terminated:

                           i        by reason of the liquidation of the Company
                                    for the purpose of amalgamation or
                                    reconstruction; or,

                           ii       as part of any arrangement for the
                                    amalgamation of the undertaking of the
                                    Company not involving liquidation or for the
                                    transfer of the whole or part of the
                                    undertaking of the Company to any of its
                                    Subsidiaries or Associates, and,

                  B        you are offered employment of a similar nature with
                           the amalgamated or reconstructed or transferee
                           company on terms not generally less favourable to you
                           than the terms of this Contract;

         you will have no claim against the Company under this Contract in
         respect of that termination.

16.      DISCIPLINE AND GRIEVANCES

16.1     A copy of the Employee Rules of the Company for the time being in
         force, which apply to you by virtue of your employment hereunder, can
         be obtained from the Personnel Department.

16.2     If you are dissatisfied with any disciplinary decision or have any
         grievance relating to your employment, you should raise the matter with
         the Chief Executive either orally or in writing and the reference will
         be dealt with by discussion and decision by the Chief Executive.

17.      INVENTIONS

17.1     If at any time during the continuance of your employment you, whether
         alone or with any other person, make, discover or produce any
         invention, process, development or design which relates to, or affects,
         or in the opinion of the Company is capable of being used or adapted
         for use in or in connection with, the business or any product, process
         or intellectual property right of the Company or any of its
         Subsidiaries or Associates:

                  A        the invention, process, development or design will be
                           the absolute property of the Company (except to the
                           extent, if any, provided otherwise by Section 39 of
                           the Patents Act 1977); and

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                  B        you will immediately disclose it to the Company in
                           writing.

17.2     You will, if and when required to do so by the Company (whether during
         the continuance of your employment or afterwards), and at its expense:

                  A        apply, or join with the Company in applying for
                           letters, patent or other protection in any part of
                           the world for any invention, process, development or
                           design to which Clause 16.1 above applies;

                  B        execute or procure to be executed all instruments,
                           and do or procure to be done all things, which are
                           necessary for vesting such letters, patent or other
                           protection in the Company or any other company, or
                           subsequently for renewing and maintaining the same,
                           in the name of the Company or its nominee; and

                  C        assist in defending any proceedings relating to, or
                           to any application for, such letters, patent Dr other
                           protection.

18.      INTERPRETATION

         In this Contract:

18.1     "Associate" means a body corporate which for the time being has not
         less than 20 per cent of its equity share capital beneficially owned by
         the Company;

18.2     "the Date of Termination" means the date upon which your employment
         under this Agreement terminates whether such termination results from
         the Company's breach and whether such breach is repudiatory or
         otherwise;

18.3     "an Existing Body" means the Electricity Councilor any Electricity
         Board (as defined in the Electricity Act 1989);

18.4     "Holiday Year" means each 12 month period commencing 1st April and
         ending 31st March;

18.5     "Recognised Stock Exchange" has the meaning attributed to it by Section
         841 of the Income and Corporation Taxes Act 1988;

18.6     "Subsidiary" has the meaning attributed to it by Section 736 of the
         Companies Act 1985 and "equity share capital" has the meaning
         attributed to it by Section 744 of the Companies Act 1985;

18.7     unless otherwise stated and except in Clause 19 below, a reference to
         "your employment" is to your employment by the Company under this
         Contract;

18.8     unless the context otherwise requires, words in the singular include
         the plural

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         and vice versa, and a reference to a person includes a reference to a
         body corporate and to an unincorporated body of persons;

18.9     a reference to a statute or statutory provisions includes a reference
         to that statute or provision as from time to time modified or
         re-enacted.

19.      ENTIRE CONTRACT CONTINUITY AND CONDITIONALITY

19.1     Except as otherwise expressly provided by its terms and for any
         detailed rules (not being inconsistent with the express terms hereof)
         from time to time laid down by the Company, this Contract represents
         the entire understanding, and supersedes any previous agreement,
         between the parties in relation to your employment by the Company, its
         Subsidiaries or Associates.

20.      NOTICES

20.1     Any notice to be given under this Contract will be in writing and will
         be deemed to be sufficiently served by one party on the other if it is
         either delivered personally or is sent by prepaid first class post and
         addressed to the party to whom it is to be given, in the case of
         yourself, at your last known residence and in the case of the Company,
         at its registered office, and any such notice if so posted will be
         deemed to have been served on the day (excluding Sundays and public
         holidays) following that on which it was posted.

21.      JURISDICTION

21.1     This Contract shall be governed by and interpreted in accordance with
         the laws of England and each of the parties submits to the jurisdiction
         of the English courts as regards any claim or matter arising under this
         Contract.

Signed for and on behalf of
The National Grid Company plc

/s/ [sic][illegible]
--------------------
Date 1-Dec-1994

I have read the foregoing terms and conditions of employment and wish to accept
employment with the National Grid Company plc on those terms and conditions.

Signed /s/ Jeffrey A. Scott
       ---------------------
Date 1/12/94

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                                   SCHEDULE 1

                         THE NATIONAL GRID COMPANY plc.

               PENSION AND LIFE ASSURANCE ARRANGEMENTS FOR GENERAL
                                    MANAGERS

The normal retirement age for General Managers, for pension purposes, is aged
60.

Your service will now accrue at a rate of 1/45th of final pensionable earnings
per year of service as a General Manager. You will be able to exchange part of
this pension for a tax free lump sum up to the maximum permitted by the Inland
Revenue.

If you leave National Grid before normal retirement age your accrued benefit
will be a proportion of the benefit you would have been entitled to at the
normal retirement age based on your pensionable earnings at the date of leaving.
This proportion will be calculated by dividing your actual ESPS service since
joining the scheme (up to a maximum of 40 years) by the service you could have
earned (maximum 40 years) to your normal retirement age. In addition, any back
service credit or added years will be taken into account to the extent that
Inland Revenue rules permit.

On death in service before the normal retirement date a lump sum is available
for your beneficiaries equal to four times your annual rate of salary at death
plus the total amount of contributions paid by you into the ESPS.

The pension payable to your spouse on death in service before normal retirement
age is calculated as one-half of the pension you would have received at normal
retirement based on pensionable salary death.

The pension payable to your spouse on death after retirement is calculated as
one-half of your pension. The calculation will assume you choose to exchange no
pension for cash at retirement.

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NOTES

i.    Any retained benefits will be deducted from the benefits provided by the
      Company to the extent that you would otherwise receive benefits in excess
      of the maximum pension of 2/3 pensionable salary provided by the Company.

ii.   If under the existing ESPS your benefits exceed the amounts described
      above you will of course be entitled to the higher amount.

iii.  The pay on which your pension will be based will continue to be your
      pensionable salary as defined under the ESPS.

iv.   In addition as long as your total benefits are within Inland Revenue
      limits you will be entitled to the benefits purchased with any AVC monies.
      Otherwise AVC monies will be refunded to you. If applicable further
      details will be sent to you shortly.

v.    You should note that the Inland Revenue have placed a restriction on the
      amount of pay which benefits may be calculated (pensionable salary)
      through an approved pension arrangement. Where final pensionable earnings
      are over (pound)100,000, the permitted maximum is the greater over the
      three years preceding retirement as increased by rpi. The Company will
      provide benefits only up to these Inland Revenue maxima unless otherwise
      agreed with the individual.

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NATIONAL GRID TRANSCO

5th June 2003

Mr J A Scott
Berrington House
Station Road
Chipping Camden
Gloucestershire GL556JY

Dear Jeff

Further to recent discussions, I confirm our offer to you of a Temporary
International Assignment at National Grid (USA) Inc Westborough MA in the USA,
as Chief Operating Officer, US Transmission, reporting to myself, with effect
from 1 July 2003.

If you accept this offer, your UK base salary will be increased to
(pound)185,000 pa, subject to annual review in April 2004. You will be eligible
for International Allowances as indicated in the attached Temporary
International Assignment Contract and will remain on the UK payroll but will be
administered under No Tax code.

During your assignment, your existing UK contract with the Company remains in
force but will be varied in accordance with the provisions of the Temporary
International Assignment Contract and the following documents:

      -     NGT International Assignment Policy document dated June 2002, as
            amended May 2003

      -     Tax Equalisation Policy dated 20 July 2001

      -     Code of Conduct.

Where the provisions of this letter and your Temporary International Assignment
Contract differ from the corresponding provisions of the National Grid Group's
International Assignment Policy of June 2002, then the provisions set out in the
letter and the Temporary International Assignment Contract shall prevail.

This offer is subject to the following conditions:

(i)   Your holding a valid British Citizen passport

(ii)  Your being granted any relevant entry clearance and work permit
      documentation

(iii) Your undergoing a medical examination and being passed by the Company's
      medical adviser as fit for this assignment. Any costs associated with this
      examination may be recovered from the Company.

If you have any questions regarding the Temporary International Assignment
please let me know as soon as possible and we will do all we can to ensure they
are answered.

Please sing and return a copy of this letter as confirmation that you agree with
the terms of this offer.

Yours sincerely

<PAGE>

/s/ Nick Winser

NLCK WINSER
GROUP DIRECTOR

I accept the employment terms setout in this letter and the enclosed Temporary
International Assignment contract. I have also enclosed, duly signed by myself,
a signed copy of the contract.

Signed /s/ Jeffrey A. Scott

Jeff Scott

Dated 28/6/2003

<PAGE>

                   TEMPORARY INTERNATIONAL ASSIGNMENT CONTRACT

THE NATIONAL GRID GROUP plc (the "Company") and THE NATIONAL GRID COMPANY plc
whose registered offices are at 1-3 Strand, London WC2N 5EH and National Grid
House, Kirby Comer Road, Coventry, CV4 8JY respectively and

TO THE.EMPLOYEE Jeff Scott of Berrington House, Station Road, Chipping Campden,
Gloucestershire GL55 6HY

ON 03 June 2003

1     Appointment and Term

1.1   You will be appointed to undertake a temporary overseas assignment as
      Chief Operating Officer, US Transmission based in Westborough, USA. During
      the assignment you will report to Nick Winser, Group Director who will
      discuss the precise nature of your duties and responsibilities with you.
      For all practical assignment issues covered in this contract you should
      refer to International Personnel Management Ltd (IPM), whom National Grid
      have appointed to undertake all expatriate administration. IPM can be
      contacted on +44 1733 352235.

1.2   This assignment and the provisions in this contract are effective from 01
      July 2003. The intended term of the appointment is for a period of 30
      months, however, the Company may vary or extend the contract if required.
      Any substantial alteration or extension to the length of the assignment
      will be by agreement and fully discussed with you before the changes are
      made.

1.3   Initially you will not be accompanied on this assignment. It is intended
      that your wife join you some months after your assignment begins and that
      she herself shall take up a role with National Grid USA. The structure of
      this contract, therefore, and that she will be assigned under, will
      reflect these intentions.

1.4   Throughout the period of your assignment the terms and conditions of your
      existing UK employment contract with the Company shall be varied in
      accordance with the terms and conditions placed on you while overseas as
      set out or referred to in this contract, but otherwise the terms and
      conditions of your existing UK employment contract shall continue to
      apply. At the expiration of this Temporary International Assignment
      Contract, and subject to clause 10, you will return to the UK, and your
      existing UK employment contract, modified to include any modifications
      made to the employment conditions of the Company's UK staff in the period
      of absence, will become fully effective once again.

1.5   For the duration of your assignment Steve Holliday will act in the role of
      mentor. This role will be to maintain regular professional contact with
      you during the assignment and to take managerial responsibility for your
      career management and repatriation.

2.    Hours of Work.

      The normal hours of work will be the same as those applying to local staff
      of the overseas company. However, you will be expected to work such other
      hours as may be required for the proper performance of your duties and you
      will not be entitled to receive additional remuneration for work over and
      above normal hours.

3.    Pay

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3.1   Salary

3.1.1 During the assignment you will receive a salary equivalent to your Base
      Salary (specified in your Assignment Offer letter enclosed with this
      contract) net of Hypothetical Tax in accordance with the Company's Tax
      Equalisation Policy referred to in clause 7.

3.1.2 In addition to your Base Salary, you will receive International Allowances
      as appropriate, which are calculated by reference to your Base Salary, and
      benefits, as set out below. These allowances will be paid to you without
      deducting hypothetical tax.

3.1.3 Your Base Salary will be used to calculate your pension contributions
      throughout the period of your assignment in accordance with the Company's
      normal UK policy.

3.2   Bonus

      For the duration of the assignment you will be eligible for a bonus. The
      maximum bonus you may earn is that percentage of your Base Salary set out
      in the attached Financial Summary based on achieving the performance
      targets agreed with Nick Winser. The amount of your bonus earned whilst on
      an international assignment will be subject to a hypothetical tax
      deduction at the time it is paid, as detailed in the Tax Equalisation
      Policy.

4.    International Allowances

4.1   International Allowances

      You are entitled to receive an international allowance in accordance with
      the Company's policy on your overseas location. Details of the allowances
      applicable to your assignment location are set out in the attached
      Financial Summary. This allowance is paid monthly in arrears for the
      period of the assignment spent overseas in rented accommodation. The
      Company will be responsible for any taxes payable on this allowance. Note
      that international allowances are calculated by reference to Base Salary
      capped at (pound)100,000 pa.

4.2   Cost of Living Allowance

      You are entitled to receive a cost of living allowance in accordance with
      the Company's International Assignment Policy as amended in May 2003.
      Details are given in the Financial Summary. This allowance is paid monthly
      in arrears for the period of the assignment spent overseas in rented
      accommodation. The Company will be responsible for any taxes payable on
      this allowance.

4.3   Disturbance Allowance

4.3.1 A disturbance allowance of (pound)8,000 will be paid to you at the start
      of your assignment as set out in the attached Financial Summary. This
      amount will be made as a lump sum in the month in which your assignment
      begins.

4.3.2 This is intended to assist with the cost of settling into overseas
      accommodation and in defraying the additional expense incurred in moving
      from the UK. The Company will be responsible for any taxes payable on this
      allowance.

<PAGE>

4.3.3 On repatriation, or re-assignment to another country, you will be eligible
      for an allowance of (pound)6,000, tax free.

4.4   Terminal Bonus

      For the avoidance of doubt, you will not be entitled to a Terminal Bonus
      at the conclusion of your assignment.

5.    Benefits

5.1   Accommodations/Utilities

5.1.1 You will be responsible for determining arrangements for your UK home and
      all costs, taxes or other expenses related to your UK home are to your
      account.

5.1.2 You may be required to spend a short period of time in hotel accommodation
      on arrival in the overseas location while furnished rented accommodation
      is secured. Details of the Company's policy on temporary accommodation are
      set out in the International Assignments Policy.

5.1.3 The Company will assist you in finding suitable fully furnished or
      unfurnished (as appropriate) accommodation in the overseas country. The
      rental ceiling will be US$5,000 per month and if necessary furniture
      rental costs will also be met by the Company. The Company's policy on
      accommodation/rent allowance is set out in the International Assignments
      Policy.

5.1.4 The cost of reasonable utilities i.e. gas, water, electricity, telephone
      rental and business calls, will be paid by the Company in accordance with
      the International Assignments Policy.

5.1.5 Buildings and contents insurance cover costs will be met by the Company.

5.1.6 Any necessary taxes associated with property rental will be met by the
      Company and any taxes attributable to the benefit for income tax purposes
      will be covered under the Company's Tax Equalisation Policy.

5.2   Travel and Transport

      Air tickets to the destination at the start and end of the assignment will
      be provided for you and your family. Details of the Company's policy on
      flights, company cars and local transportation are set out in the
      International Assignments Policy.

      Notwithstanding the amendments to the Policy of May 2003, you and your
      accompanying family will be entitled to travel Business Class for Home
      Leave trips.

5.3   Company Car

      You will be provided with a car in the USA and the Company will meet the
      costs of taxes and insurances relating to the vehicle, as well as the cost
      of fuel for both business and private use.

      During your assignment the Company will seek to arrange for the retention
      of the UK registration number (J5NGT) although you will be liable for any
      charges levied by the competent authorities.

5.4   Freight Allowances and Storage in the UK

      The Company will provide for the transportation of your personal baggage
      from the UK to the

<PAGE>

      overseas country and subsequent return to the UK at the end of your
      assignment. Storage of some personal effects in the UK may be supported.
      Details of this policy are set out in the International Assignments
      Policy.

5.5   Education

      If required, the Company will reimburse you for school fees in the
      overseas location or UK school tuition [as appropriate] and flights to the
      overseas location in accordance with the Company's education policy as set
      out in the National Grid International Assignments Policy.

5.6   Pension

      For the period of the assignment you will remain a member of the National
      Grid section of the Electricity Supply Pension Scheme. The Company will
      continue to make contributions and the appropriate deductions for your
      contributions will be made based on your Base salary.

5.7   Insurance

      Private international medical and dental insurance, including emergency
      repatriation, will be provided for you and your accompanying family from
      the respective times of departure from your UK home to your destination
      and subsequent return. Further details of this general insurance coverage
      are set out in the International Assignments Policy.

6.    Payment Arrangements

6.1   You should indicate the monthly amount in (pound) sterling, which you wish
      to be paid into a local bank account in the assignment country. This
      amount will be paid in local currency, calculated by reference to the
      exchange rate determined by our bankers in the UK on the day it is
      transferred. All transfer costs will be borne by the Company. The balance
      of your monthly salary will be paid into your nominated UK bank account in
      UK Sterling. Any changes to the location for payment should be made in
      line with the International Assignments Policy.

6.2   The international and cost of living allowances ("the combined
      allowances") will be reviewed annually, currently in July. In this review
      the Company will take account of data provided by ECA-International in
      respect of exchange rate movements, inflation and changes in any other
      appropriate measures. As a result of this review, the Company reserves the
      right to make changes to the amount of the combined allowances as
      appropriate. These changes will be implemented with immediate effect. You
      accept that your combined allowances may fluctuate up or down in July of
      each year and you accept that this fluctuation, if any, is in accordance
      with the Company's policy as set out in the International Assignments
      Policy. In any event the 10% overseas allowance will remain for the
      duration of your assignment.

7.    Taxation

      The Company's approach to taxation is set out in the Tax Equalisation
      Policy. Note that the policy of equalisation will apply to National
      Insurance contributions as well as to income tax.

      Under the Tax Equalisation Policy you will be entitled to tax briefings in
      the UK on departure and in the USA on arrival and subsequent departure.
      You will also be entitled to assistance from the Company's retained tax
      advisers, Deloitte & Touche, with the preparation and filing of UK tax
      returns relating to the year of departure and return (but not in any
      intervening year). Deloitte & Touche will also assist you with the
      preparation and filing of all US tax returns.

8.    National Insurance Contributions

<PAGE>

8.1   The Company will make application to obtain the necessary certificate of
      coverage to exempt you from contributions to the Social Security Scheme in
      the assignment country.

8.2   In the event that any social security, federal, state or local taxes
      equivalent to UK National Insurance Contributions should become payable in
      the assignment country, the Company will reimburse you for those payments.

9.    Leave

9.1   Annual Leave: Your annual leave will remain unchanged from your total UK
      entitlement at 33 days per annum.

9.2   Public Holidays: During your assignment, UK fixed public holidays will be
      replaced by local public holidays in the assignment country. These days
      will be taken either as local holidays arise or as agreed with the
      Assignment Manager.

9.3   Home Leave: During your assignment you will be entitled to home leave
      return trips to the UK as setout in the International Assignments Policy.

9.4   You will be allowed additional relocation leave of up to 3 days at the
      beginning and end of your assignment (total 6 days) to oversee the
      relocation of your belongings. No cash alternative is available.

10.   Termination

10.1  For the avoidance of doubt, the provisions in relation to the termination
      of your employment in your existing UK contract will continue to apply
      notwithstanding your temporary assignment overseas.

10.2  Where possible, reasonable notice of any premature termination of
      assignment will always be given. However, the company reserves the right
      to terminate the Temporary International Assignment at any time without
      indemnity, compensation or notice where the Company deems it necessary or
      desirable. Non-exhaustive examples of reasons for assignment termination
      are as follows:

      (a)   serious or repeated breach of the Standard Code of Conduct;

      (b)   behaviour by you or accompanying family members in a manner which
            will bring you, the Company, or overseas company into disrepute;

      (c)   any change in the business need for the assignment or in the
            contractual/financial relationships supporting a particular project;

      (d)   if the company received advice that your continued employment in the
            assignment country would be likely to endanger your health or safety
            or that of accompanying family members.

10.3  Your return to the United Kingdom on premature termination or expiry of
      your assignment will be dealt with in accordance with Section 8.11 of the
      National Grid International Assignment Policy.

11.   Sundries

11.1  Club Membership

<PAGE>

      The Company will reimburse up to a maximum of (pound)1,000 of the initial
      joining fee of a club membership.

11.2  Company Credit Card

      You will be issued with a company credit card to facilitate business
      expenditure abroad in accordance with the Company's policy as set out in
      the International Assignments Policy.

11.3  Mobile/cell phones

      You will be entitled to retain the UK mobile telephone currently allocated
      to you and will be allocated a cell phone in the USA.

12.   Financial

      You will be responsible for all financial obligations incurred by you
      during the term of your assignment, except where this expressly provides
      that the Company shall be liable for such expenses.

13.   Repatriation

      Prior to the end of your assignment, discussions will take place with a
      Company representatives to explore your skills, experience and aspirations
      as well as potential opportunities to try to find you a suitable position
      within National Grid Transco plc, either in the UK, or elsewhere, as
      appropriate. Details of your repatriation are set out in International
      Assignments Policy.

14.   Jurisdiction

      Your assignment shall be governed by and all assignment documents shall be
      interpreted in accordance with the laws of England and Wales. All
      disputes, claims or proceedings between the parties relating to the
      validity, construction or performance of this Agreement are subject to the
      non-exclusive jurisdiction of the High Court of Justice in England and
      Wales.

Signed for and on behalf of The National Grid Company plc

Signed /s/ Nick Winser
Nick Winser
Group Director

Date  17.7.03

I have read the foregoing terms and conditions of employment and wish to accept
the temporary overseas assignment with the National Grid Group plc on those
terms and conditions.

Signed /s/ Jeffrey A. Scott
Jeff Scott
Date 28/6/2003

<PAGE>

                                FINANCIAL SUMMARY

<TABLE>
<CAPTION>
RENUMERATION                                                                                    (pound) per annum
------------                                                                                    -----------------
<S>                                                                                             <C>
Assignment Salary
Base Salary                                                                                     (pound)185,000.00
Deductions
Hypothetical Tax                                                                                ((pound)67,277.91)
SUB TOTAL                                                                                       (pound)117,722.09
Assignment Allowances
International allowance: 10% of Capped Salary                                                    (pound)10,000.00
Cost of living adjustment based on cost-effective home based index of 117                         (pound)4,225.35
TOTAL NET ASSIGNMENT RENUMERATION                                                               (pound)131,947.44

TOTAL RENUMERATION (MONTHLY)                                                                     (pound)10,995.62

Other Assignment Benefits:
Disturbance Allowance (tax free)                                                                  (pound)8,000.00
One off payment at start of assignment

Performance Bonus
Potential to achieve a maximum of 30% annual bonus, hypothetical tax will be
  deducted from your bonus earned whilst on assignment

</TABLE>

These other benefits provide additional value and support to you and your
family:

Pre Assignment Visit
Cultural Briefing
Accommodation costs
Utility Costs
Removal costs
One Business Class Home Leave flight per annum
Tax Assistance with tax returns for UK in the year of departure and the year of
  return, and in the host country in each relevant year
BUPA International Healthcare cover
Club membership (provided Assignment Manager approves)
Company Car/Transport Allowance
Assistance selling a privately owned car in the UK up to (pound)2,000
Education costs in the UK if appropriate<PAGE>

                                                                   EXHIBIT 10(n)

                                  AMENDMENT TO
                          NATIONAL GRID USA COMPANIES'
                           DEFERRED COMPENSATION PLAN

      Pursuant to the provisions of Article V of the National Grid USA
Companies' Deferred Compensation Plan, said Plan is hereby amended effective as
of April 1, 2002 as follows:

      Wherever the name National Grid Group, plc appears in the Plan it shall be
replaced with National Grid Transco, plc.

Article I is amended to read:

I.    PURPOSE; EXISTING BENEFITS

      The purpose of the National Grid USA Companies' Deferred Compensation
Plan, previously entitled the New England Electric Companies' Deferred
Compensation Plan, (the Plan) is to enable executives to better plan the timing
of their receipt of income by deferring compensation in accordance with Federal
tax statutes. The Plan first executed in June of 1979, has been amended on
several occasions since, including being amended and restated effective as of
the date of consummation of the merger of New England Electric System and
National Grid Group plc, in order to provide for the operation of the Plan
thereafter. Deferrals made under previous versions of the Plan are to receive
benefits under, and are controlled by, the terms of such versions unless
specifically provided otherwise under the terms of a subsequent amendment. The
Plan is being further amended effective as of April 1, 2002 to incorporate and
merge the Niagara Mohawk Holdings Inc., Deferred Compensation Plan (Niagara
Mohawk's Plan) and Niagara Mohawk Excess Benefit Plan (Benefit Plan) into the
Plan. The terms for payment of deferrals or contributions made under Niagara
Mohawk's Plan prior to April 1, 2002 shall continue to be controlled by
applicable terms of the Niagara Mohawk Plan. Otherwise, inconsistent provisions
between the Niagara Mohawk Plan and the Plan shall be controlled by the terms of
the Plan. The terms for payment under the Benefit Plan shall continue to be
controlled by the applicable terms of the Benefit Plan, but otherwise
inconsistent provisions shall be controlled by the terms of the Plan. Deferrals
made as of April 1, 2002 and thereafter will be made subject solely to the terms
of the Plan. Contributions under the Benefit Plan ceased as of January 31, 2002
as did deferrals under the Niagara Mohawk Plan.

Section 2.2.2 (b) is amended to read: "National Grid Transco, plc's shareholders
approve the sale or disposition of all or substantially all of the assets of
National Grid USA to a non-affiliated entity, or

Section 2.24 is amended to read:

                                       1
<PAGE>

      2.24 Participant means a Participant in the Incentive Compensation Plan
and the Incentive Share Plan. For deferral purposes under Section 4.01, a
Participant shall be limited to an individual who is in ICP I or ICP II
commencing with deferrals applicable to fiscal years on and after April 1, 2003.

Section 4.01 (A) is amended to read:

      (A)   Form of Election. A Participant may elect to defer Compensation, as
defined in Section 2.12 above, as follows:

      (i)   A Participant may elect to have his or her 2.12(a) Compensation
            reduced by any percentage - not exceeding 15 percent.

      (ii)  A Participant may elect to defer any whole percentage of his/her
            2.12 (b) Cash Bonus or any whole percentage of his/her 2.12(c) bonus
            if awarded in cash.

      (iii) A Participant may elect to defer all of his/her 2.12(b) Annual
            Incentive Share Award, or all of his/her 2.12(c) bonus if awarded in
            ADR's, which ADR's shall be credited as Deemed Investments.

            Elections (i) (ii) and (iii) above are not exclusive and a
            Participant may elect one, or any combination thereof.

Sections 4.06 (A), (B), (C), and (D) is amended for all elections including
outstanding elections under previous versions of the Plan as follows:

4.06  Payment of Balances.

      (A)   Election of Time of Payment.

            (i)   At the time of electing to defer Compensation, in accordance
                  with subsection 4.01(A) above, the Participant shall also
                  elect whether to receive payment after ten years or, in
                  accordance with 4.06(C), when he/she commences receipt of
                  benefits under the Qualified Plan

            (ii)  A Participant, who has previously elected to receive payments
                  triggered by commencement of Qualified Plan benefits under
                  Section 4.06(C) may request the Benefits Administrator to
                  approve a change in the payout schedule to either a lump sum
                  payment, or three, five, or ten annual payments commencing, in
                  the January following commencement of benefits under the
                  Qualified Plan or for a lump sum payment as soon as practical.
                  The determination of said request shall be at the Benefits
                  Administrator's sole discretion and shall be in accordance
                  with procedures established by the Benefits Administrator.
                  Said procedures shall provide that no

                                       2
<PAGE>

                  change to the Participant's standing election(s) may occur
                  unless the request and approval process is completed prior to
                  the requesting Participant's Qualified Plan benefits
                  commencement date. In the event the election involves the
                  Benefits Administrator, the determination shall be made by the
                  CEO.

      (B) Payments After Ten Years. If the Participant has elected payment after
ten years, the full related Participant Account balance shall be paid in a lump
sum payment as soon as practicable after the close of the tenth anniversary of
the close of the Related Plan Year.

      (C) Payments at Retirement. A Participant may elect to receive payments
contingent on the date when he/she commences receiving benefits under the
Qualified Plan. If so desired, the Participant may elect to have his/her full
Account balance be paid either in (1) three, five, or ten annual payments
commencing in January of the year following commencement of Qualified Plan
benefits, or (2) in a lump sum payment in January of the year following
commencement of Qualified Plan benefits.

      (D) Payments Upon Termination of Service

          Regardless of the payment election previously made by the Participant,
 the full Account balance of a Participant who is not Vested under the Qualified
Plan upon his/her Termination of Service shall be paid as soon as practicable
after his/her Termination of Service.

      Regardless of the payment election previously made by the Participant,
following Termination of Service and prior to commencement of Qualified Plan
benefits, a Participant who is Vested in the Qualified Plan may elect to receive
as soon as practical, in lieu of any future benefits, a lump sum payment of
his/her full Account balance and the Actuarial Value of the maximum value of
future benefits from deferral units, all less 10%.

                                                    /s/ Richard P. Sergel
                                                  -----------------------------
                                                  Chief Executive Officer
                                                  National Grid USA

                                       3
<PAGE>

                    Amendment to National Grid USA Companies'
                           Deferred Compensation Plan

      Pursuant to the provisions of Article V of the National Grid USA
Companies' Deferred Compensation Plan, said Plan is hereby amended effective
September 1, 2003 as follows:

      1.    Section 2.11 is amended to read:

            2.11  A Change in Control shall be deemed to have occurred if the
                  conditions set forth in any of the following paragraphs shall
                  have been satisfied:

                  (a)   any Person or Persons in concert obtains Control (as
                        defined in Section 840 of the United Kingdom's Income
                        and Corporation Taxes Act 1988) of National Grid Transco
                        plc as a result of making a general offer to acquire
                        shares in National Grid Transco plc or having obtained
                        Control, makes such an offer;

                  (b)   the consummation of the sale or disposition by National
                        Grid Transco plc of National Grid USA to a
                        non-affiliated entity (whether by merger, sale of all or
                        substantially all of the capital stock or assets of
                        National Grid USA or otherwise);

                  (c)   the complete liquidation, dissolution or winding up of
                        National Grid Transco plc and/or of National Grid USA;
                        or

                  (d)   the acquisition by National Grid Transco plc or National
                        Grid USA or their successors of all or substantially all
                        of the assets of or ownership of all or substantially
                        all of the outstanding shares of a U.S. electric and/or
                        gas utility company which would increase the size or
                        revenues of National Grid USA by 25% or more.

                              A Change in Control shall not be deemed to have
                        occurred if the events referred to above are part of an
                        arrangement ("a Reorganization") which will mean that
                        National Grid Transco plc and/or National grid USA will
                        be under the Control of another company or the business
                        of National Grid Transco plc is carried on by another
                        company, and the Persons who owned the shares in
                        National Grid Transco plc immediately before the Change
                        in Control will immediately afterwards own more than 50%
                        of the shares in that other company.

<PAGE>

      2.    Section 2.22 is amended to read:

            2.22  A Major Transaction shall be deemed to have occurred if the
                  conditions set forth in any one of the following paragraphs
                  shall have been satisfied:

            (a)   any Person becomes bound or entitled to acquire shares in
                  National Grid Transco plc under Sections 428 to 430F of the
                  United Kingdom's Companies Act 1985, or a scheme of
                  arrangement or compromise under Section 425 of the United
                  Kingdom's Companies Act 1985 is proposed for National Grid
                  Transco plc;

            (b)   National Grid Transco plc shareholders, National Grid USA's
                  shareholders and/or the Board of Directors of National Grid
                  USA approve the sale of National Grid USA to a non-affiliated
                  entity (whether by merger, sale of all or substantially all of
                  the capital stock or assets of National Grid USA, or
                  otherwise);

            (c)   National Grid Transco plc passes a resolution for voluntary
                  winding up, or an order is made for the compulsory winding up
                  of National Grid Transco plc and/or National Grid USA;

            (d)   the shareholders of National Grid Transco plc, the
                  shareholders of National Grid USA and/or the Board of
                  Directors of National Grid USA approve an event the
                  consummation of which would result in the occurrence of a
                  Change in Control; or

            (e)   the Board of Directors of National Grid Transco plc adopts a
                  resolution that, for purposes of this Agreement, a Major
                  Transaction has occurred.

                        A Major Transaction shall not be deemed to have occurred
                  if the events referred to above are part of an arrangement ("a
                  Reorganization") which will mean that National Grid Transco
                  plc and/or National Grid USA will be under the Control of
                  another company or the business of National Grid Transco plc
                  is carried on by another company, and the Persons who owned
                  the shares in National Grid Transco plc immediately before the
                  series of transactions are consummated will immediately after
                  consummation own more than 50% of the shares in that other
                  company.

                                                  By: /s/ Richard P. Sergel
                                                      -----------------------
                                                      Chief Executive Officer
                                                      National Grid USA

                                       2

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