The Power Supply Agreement serves as a crucial legal instrument in India's energy sector, establishing the contractual framework between power generators/suppliers and purchasers. This document is essential when establishing long-term power supply arrangements, whether for industrial consumers, distribution companies, or bulk power users. It comprehensively addresses technical specifications, supply obligations, tariff structures, and operational procedures while ensuring compliance with Indian regulatory requirements, including the Electricity Act 2003 and relevant CERC regulations. The agreement is particularly important in contexts involving significant power consumption, grid connectivity requirements, or specialized power supply arrangements. It includes detailed provisions for quality parameters, metering, billing, dispute resolution, and force majeure events, making it a fundamental document for energy sector transactions in India.
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1. Parties: Details of the power supplier and purchaser, including their registered addresses and authorized representatives
2. Background: Context of the agreement, including relevant licenses, approvals, and the basis for entering into the power supply arrangement
3. Definitions: Detailed definitions of technical and commercial terms used throughout the agreement
4. Term and Duration: Period of the agreement, including commencement date, duration, and renewal provisions
5. Supply Obligations: Core obligations regarding power supply, including quantity, availability, and quality parameters
6. Power Specifications: Technical specifications of power supply, including voltage levels, frequency, and other technical parameters
7. Metering and Measurements: Requirements for metering equipment, measurement procedures, and record-keeping
8. Tariff and Payment Terms: Detailed pricing structure, billing procedures, payment terms, and dispute resolution for billing
9. Connection and Delivery Point: Specifications of the delivery point and connection responsibilities
10. Operating Procedures: Day-to-day operational procedures, including scheduling, dispatch, and maintenance
11. Force Majeure: Events constituting force majeure and consequent rights and obligations
12. Default and Termination: Events of default, cure periods, and termination rights
13. Dispute Resolution: Procedures for resolving disputes, including arbitration provisions
14. Governing Law: Applicable law and jurisdiction
15. Representations and Warranties: Standard and specific warranties from both parties
1. Renewable Energy Obligations: Required when the power supply involves renewable energy sources, including specific obligations and renewable energy certificates
2. Cross-Border Supply Provisions: Needed for international power supply arrangements, including specific regulatory compliance requirements
3. Grid Integration: Required for arrangements involving direct grid connection, specifying technical requirements and responsibilities
4. Carbon Credits: Relevant for clean energy projects, addressing ownership and trading of carbon credits
5. Deemed Generation: Required when the agreement needs to address compensation for grid failure or backup power arrangements
6. Change in Law: Detailed provisions for handling regulatory changes, particularly relevant in long-term agreements
7. Step-in Rights: Required when lenders need protection through step-in rights in case of default
1. Technical Specifications: Detailed technical parameters of power supply, equipment specifications, and quality standards
2. Tariff Schedule: Detailed breakdown of tariff components, calculations, and adjustment mechanisms
3. Testing and Commissioning Procedures: Procedures for initial testing and periodic testing of supply infrastructure
4. Operating Procedures Manual: Detailed procedures for day-to-day operations, emergency responses, and maintenance
5. Metering Specifications: Technical details of metering equipment, calibration requirements, and testing procedures
6. Performance Standards: Detailed performance parameters, penalties, and incentives
7. Insurance Requirements: List of required insurance coverage and minimum coverage amounts
8. Interconnection Details: Technical specifications and drawings of interconnection facilities
9. Contact Details: List of authorized representatives and emergency contacts
10. Applicable Permits: List of required permits, licenses, and compliance certificates
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