The Power Trading Committee of the FOA, recognising the need to update the Grid Trade Master Agreement (GTMA), established a practitioner working group to review the Agreement and put forward recommendations as to how it should be amended to meet the documentary needs of a more diverse and sophisticated power market.

Denton Wilde Sapte have now reviewed the proposed revisions drafted by the Working Group and, following a period of consultation with the membership of the Power Trading Forum, there are now two new GTMA documents, namely:

- a new Schedule 3B to the GTMA which applies in the case of Contract Party Notification and which sets out the key operational provisions of the GTMA (NB: There is no Schedule 3A. The term "Schedule 3B" has been retained because it is a well known term in the industry);

- an Options Annex (and associated form of Confirmation), which facilitate counterparties entering into Option Transactions under the GTMA.

The new version will also be incorporated in the ISDA Master Agreement to sit alongside the European Gas Annex and so facilitate the establishment of a common documentary platform for the trading of power and gas.

The Grid Trade Master Agreement (June 2004)

GTMA Options Annex (June 2004)