NATIONAL POWER PLC INTERIM RESULTS for the six months ended 25 September 1994.

LONDON--(BUSINESS WIRE)--Nov. 17, 1994--NATIONAL POWER PLC INTERIM RESULTS for the six months ended 25 September 1994

Highlights ========== o Dividends up 16%, and earnings per share before exceptional

item up 14%

o    Profits up 14% before tax and exceptional item
o    Purchase of up to 8% of Company shares planned in HMG

offer

o    Financing in place for the 1292 MW Hub Project in Pakistan
o    Dividend cover to reduce to 2.5 times within next two years

                     Half year   Half year             Year ended
                     September   September     Change    27 March
                          1994        1993       %           1994
                         GBPm         GBPm                   GBPm

Turnover                 1,668       1,559     +7.0%       3,641

                       =======      ======                 ======
Profit before tax
 and exceptional item      241         211    +14.2%        632
Exceptional item           (30)         45                   45

                       -------      ------                ------

Profit before tax           211         256    -17.6%        677

                       =======      ======                ======
Earnings per share:
 before exceptional
  item                    14.4p       12.6p    +14.3%      37.3p
 after exceptional item   12.0p       16.1p    -25.5%      40.9p
 IIMR "Headline" earnings 14.9p       15.8p     -5.7%      40.2p

Dividend per share        4.35p       3.75p    +16.0%      12.5p

Dividend cover        3.3 times    3.4 times            3.0 times

Investments             GBP282m      GBP564m   -50.0%   GBP1,050m

Debt/equity ratio         13.6%        32.4%                13.3%

BUSINESS OVERVIEW
=================

Our half year's results represent a good performance against
continuing pressures on market share from new entrants' combined
cycle gas turbine (CCGT) capacity and output from nuclear
stations. Our market share fell to 32%, and there is continuing
excess generating capacity in England and Wales. Customers have
benefited from lower Pool prices which have remained below the
price cap in our Undertaking to the Director General of
Electricity Supply (DGES). We maintained our drive for lower
costs and efficiency improvements at our power plants. We
achieved our target level of contract cover for our output, and
output hedged by direct sales to customers more than doubled.
Turnover was up 7%.

Our CCGT power station development programme is going well; 1200
MW of capacity is expected to commission in the financial year,
and another 1326 MW of capacity is under construction.

Our international business development has marked up some solid
achievements. Our American and Portuguese assets are performing
well. We are delighted that financing arrangements have recently
been completed for the 1292 MW Hub power station in Pakistan, in
which we have a 25% interest and which we will operate and
maintain. We are progressing prospective large coal fired power
station investments in India and China. We expect our growing
international assets to contribute to Group earnings in future
years in line with our strategy.


OPERATING AND FINANCIAL RESULTS
===============================

GROUP RESULTS
-------------

Profits and earnings per share
------------------------------

The exceptional charge of GBP30 million is the premium paid on
the redemption of the Government debt of GBP350 million injected
prior to flotation.  All comparisons with the equivalent period
last year are based on results before the exceptional item in
each period.

Profits before tax rose 14% to GBP241 million.  The effective tax
rate was virtually unchanged at 24%. Earnings per share were up
14%.

Dividends
---------

The Directors have declared an interim dividend of 4.35p per
share, up 16%. The dividend will be paid on 10 January 1995 to
shareholders registered on 15 December 1994.  The shares will go
ex-dividend on 28 November 1994. Dividend cover is 3.3 times.

Investments
-----------

Capital investment of GBP195 million principally comprised
expenditure on projects nearing completion, including our second
and third CCGTs and the remaining units of the flue gas
desulphurisation project at Drax. All projects are progressing
satisfactorily.

Completion of financing of the 1292 MW Hub Project in Pakistan,
in which the Group invested GBP64 million for a 25% equity
interest, was secured shortly after the period end.

The Group's interest in investment in overseas associates
financed by equity and non-recourse debt during the period
totalled GBP87 million.

Manpower
--------
Our continuing programme to cut costs and improve efficiency has
resulted in a further reduction in average staff numbers by 22%
to 5,667.  At 30 September 1994 Group staff numbers including
staff overseas were 5,369.

Interest Costs
--------------
Interest costs increased to GBP36 million, due principally to a
general rise in interest rates.

Provisions
----------

A net release of GBP6 million was made during the period.

Current Liquidity
-----------------

At 25 September net borrowings before proportionate debt were
GBP374 million, up GBP21 million during the period. The increase
was mainly due to the redemption of the high cost Government debt
at a premium of GBP30 million. The debt/equity ratio was
virtually unchanged from the year end at 14%.  Net cash inflow
from operating activities was GBP377 million.

A revolving credit facility put in place in 1990 and reduced in
June 1991 from GBP1,500 million to GBP600 million is being
cancelled and replaced today with a new GBP500 million facility
arranged with 25 relationship banks.

Financial Position
------------------

Our policy remains to secure at least 50% of our borrowings at
fixed rates.  At 25 September 1994, following the redemption of
the Government debt, our fixed rate borrowing mainly comprised
GBP200 million 10.625% Euro Sterling Bonds due 2001, GBP250
million 6.25% Convertible Bonds and US$ 300 million 6.25% Euro
Dollar Bonds.

THE UK BUSINESS
===============

Turnover and Sales
------------------

Turnover and sales performance were in line with expectations.
Turnover increased by 7% to GBP1,668 million. Our sales of
electricity through the Pool were 38.9 terawatt hours down from
40.0 terawatt hours, and market share fell to 32% from 33%. The
price of electricity sold through the Pool fell by 5%.  The
majority of our predicted output for the year has been hedged
with the Regional Electricity Companies, the remainder with large
customers. Following the widening of the non-franchise market,
direct sales to large customers more than doubled to GBP276
million.

Costs
-----

The majority of costs relate to the UK business.

Direct costs increased from GBP875 million to GBP983 million
reflecting increased purchases from the Pool and use of system
charges resulting from the increase in direct sales. The gross
margin was unchanged.

Depreciation charges increased by 37% to GBP132 million following
the commissioning of our Killingholme CCGT and two FGD units at
Drax. Staff costs fell by 15% as improvements in productivity,
which increased by 25%, continued. These savings, together with
a 22% reduction in other costs from GBP239 million to GBP187
million, resulted in a 14% increase in Operating Profits from
GBP240 million to GBP273 million.

Generating Plant
----------------

Our Killingholme CCGT is performing well. Little Barford and
Deeside CCGTs will enter commercial service very shortly.
Construction of the 1326 MW Didcot CCGT has begun.

The registered capacity of our power stations was 21,158 MW at
30 September, following withdrawal from service of 880MW of coal
fired plant on that day.

A further 516 MW of coal fired plant is scheduled to be withdrawn
from service by 31 March 1995. One oil fired unit at each of
Littlebrook and Pembroke power stations will be placed into
reserve on 31 March 1995.

Regulation
----------

Detailed discussions with potential purchasers of some of our
operating stations have taken place following our Undertaking to
the DGES to use reasonable endeavours to divest 4000 MW of
selected plant by the end of 1995. We reported progress against
the Undertaking to the DGES in September, when we also reported
on our Undertaking regarding Pool bidding practices. Discussions
with potential purchasers are continuing, as is consideration of
alternative means of complying with the Undertaking.

Environment
-----------

Our programme of environmental improvement projects at existing
stations is progressing well.

Following submission of our plans earlier in the year,
discussions are continuing with HM Inspectorate of Pollution
(HMIP) regarding its objective that existing coal and oil fired
stations should meet new plant standards or their equivalent by
2001.

We are assessing the option to modify our 2000 MW Pembroke power
station to burn emulsified hydrocarbon fuels such as Orimulsion.
No decision has been made, but an application has been submitted
to HMIP  for a Stage 1 Authorisation under the Environmental
Protection Act. The application includes the retrofitting of FGD
and other emission control technologies to ensure the plant
conversion would meet HMIP's new plant standards in the event
that we decided to proceed with the project.

Our second annual Environmental Performance Review was published
recently, demonstrating our commitment to the environment and
reporting on progress against the targets set the previous year.


Competition
-----------

Whilst we note that new entrants continue to announce plans for
additional gas fired power stations for commissioning in the late
1990s, the Company is pursuing its own investments in new
capacity. We expect our projects to be highly competitive in the
market for 'cleaner electricity' and reinforce the Company's
position as a low cost producer. We are confident that we will
be in a good position to compete in a market where the
consequences of long term overcapacity are a concern.

(MORE TO FOLLOW)

CONTACT: NATIONAL POWER PLC

             LYNDA LINWOOD
             INVESTOR RELATIONS MANAGER
             0101 4471 615 3912