UPDATE 2-National Grid says on track for strong year

* Says 3.4 bln pound investment programme on target

* Better profit in electricity generation, distribution

* Majority of this year's funding needs already raised

(Adds funding)

LONDON, July 27 (Reuters) - Britain's largest utility, National Grid (NG.L), said on Monday it expected a strong performance this year and its 3.4 billion pound ($5.6 billion) investment programme for the current year remained on target.

The company, which operates Britain's high-voltage electricity transmission network, said current trading was in line with its expectations and it forecast improved profit in its electricity distribution and generation business.

Moody's revised its outlook on the company to stable from negative last week, and National Grid said on Monday its financial position was sound. [ID:nWLA9374]

"The majority of this year's 2.5 billion pound funding requirement has already been raised, with funding for around a further 400 million required in the current year," it said in a statement.

In its U.S. business, where it supplies about 3.4 million customers with electricity and 3.5 million with gas, it said it submitted a request with the New Hampshire authorities asking them to reconsider the allowed return on equity for gas rates there.

National Grid was in May granted a lower than expected return for New Hampshire gas of 9.54 percent, which it said was "out of line with other regulatory decisions." Its shares, which have underperformed other London-listed utilities .FTASX7570 by 4 percent since the start of the year, closed on Friday at 563 pence, valuing it at around 13.7 billion pounds. (Reporting by Victoria Bryan; Editing by Kate Holton and David Cowell) ($1=.6049 Pound)