New Electricity Trading Arrangements
Encyclopedia
New Electricity Trading Arrangements (NETA) is the name of the system under which electricity
is traded in the United Kingdom
's electricity market
.
and oil
) while still maintaining the operation of a secure and reliable electricity system by the establishment of "close to real time" balancing arrangements.
NETA gives greater choice for market participants than the pool-based trading arrangements previously in place, which required virtually all electricity in England and Wales to be bought and sold directly through the pool.
The new arrangements are also expected to be more efficient than the pool, where prices failed to properly reflect a more competitive generation market and falling generation input costs.
Electricity
Electricity is a general term encompassing a variety of phenomena resulting from the presence and flow of electric charge. These include many easily recognizable phenomena, such as lightning, static electricity, and the flow of electrical current in an electrical wire...
is traded in the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
's electricity market
Electricity market
In economic terms, electricity is a commodity capable of being bought, sold and traded. An electricity market is a system for effecting purchases, through bids to buy; sales, through offers to sell; and short-term trades, generally in the form of financial or obligation swaps. Bids and offers use...
.
Overview
The New Electricity Trading Arrangements (NETA) came into force on 27th March 2001. It is claimed that they are designed to deliver more competitive, market-based trading arrangements for electricity (similar to those in other commodity markets like coalCoal
Coal is a combustible black or brownish-black sedimentary rock usually occurring in rock strata in layers or veins called coal beds or coal seams. The harder forms, such as anthracite coal, can be regarded as metamorphic rock because of later exposure to elevated temperature and pressure...
and oil
Petroleum
Petroleum or crude oil is a naturally occurring, flammable liquid consisting of a complex mixture of hydrocarbons of various molecular weights and other liquid organic compounds, that are found in geologic formations beneath the Earth's surface. Petroleum is recovered mostly through oil drilling...
) while still maintaining the operation of a secure and reliable electricity system by the establishment of "close to real time" balancing arrangements.
NETA gives greater choice for market participants than the pool-based trading arrangements previously in place, which required virtually all electricity in England and Wales to be bought and sold directly through the pool.
The new arrangements are also expected to be more efficient than the pool, where prices failed to properly reflect a more competitive generation market and falling generation input costs.
BETTA
As of April 2005, NETA changed its name to the British Electricity Trading Transmission Arrangements, and expanding to become the single Great Britain electricity market of England, Wales and Scotland.See also
- Electricity billing in the UKElectricity billing in the UKIn the UK, an electricity supplier is a retailer of electricity. For each supply point the supplier has to pay the various costs of transmission, distribution, meter operation, data collection, tax etc. The supplier then adds in energy costs and the supplier's own charge.- The bill :The end...
- National Grid (UK)
- GTMAGTMAThe Grid Trade Master Agreement is an agreement for trading electricity within the United Kingdom.It is normally used either when a power station has excess electricity, which it wishes to "sell back" to the power grid, or when the electricity company wishes to buy surplus power to meet a surge in...
(Grid Trade Master Agreement)