The wholesale electricity market is where generators, suppliers, traders, banks and large energy users buy and sell electricity. This electricity comes from large conventional and renewable power stations, including pumped hydro electricity storage, and interconnectors and is consumed by large factories. Smaller users such as households and most businesses buy electricity from their supplier through a bilateral energy contract which is not part of the wholesale market. This electricity is moved from the transmission system to the local distribution networks.
This lesson covers NETA, which replaced the electricity pool, and is the current electricity trading mechanism in the GB market.