Grid Trade Master Agreement—an introduction
Produced in partnership with James Stanier of Gowling WLG
Grid Trade Master Agreement—an introduction

The following Energy guidance note Produced in partnership with James Stanier of Gowling WLG provides comprehensive and up to date legal information covering:

  • Grid Trade Master Agreement—an introduction
  • What is a GTMA?
  • What are the alternatives to a GTMA?
  • Who are the primary users of GTMAs?
  • How is a GTMA structured?
  • What are the key provisions in a GTMA?

What is a GTMA?

Electricity in Great Britain (GB) is traded through a bilateral market. There is no prescribed form regarding trades. However, the Grid Trade Master Agreement (GTMA) has established itself as a standard form of electricity trading document, and is widely used by producers, suppliers and traders of electricity to document a bilateral agreement regarding the sale and purchase of electricity.

For more information on the make-up of the GB electricity market more generally, see Practice Note: The Great Britain electricity market—an introduction.

The GTMA was initially published in 2001 by the Futures and Options Association (now subsumed into the global Futures Industry Association (FIA)), for use following the introduction of the New Energy Trading Arrangements (NETA) (which was replaced by the British Electricity Trading and Transmission Arrangements (BETTA) in 2005). The GTMA was revised in 2004, and most now trade on the basis of this revised version. A copy of the 2004 revision is made publicly available by the FIA: Grid Trade Master Agreement, 2004.

Trading pursuant to a GTMA can take place right up until one hour before the commencement of the relevant half-hour Settlement Period during which electricity is to be delivered. After this deadline (known as Gate Closure) the provisions of the Balancing and Settlement Code (BSC) take over, most notably in the form of the