The Power Supply Agreement is a critical contract used in Malaysia when establishing a formal relationship between entities supplying and purchasing electrical power. It is essential for businesses requiring dedicated power supply arrangements, particularly in industrial, manufacturing, or high-consumption scenarios. The agreement must comply with Malaysian energy sector regulations, including the Electricity Supply Act 1990 and Energy Commission requirements. It typically includes detailed technical specifications, pricing structures, operational procedures, and performance standards. This type of agreement is particularly relevant for independent power producers, large industrial consumers, and utilities operating within Malaysia's energy framework, and requires careful consideration of both technical and commercial aspects of power supply arrangements.
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1. Parties: Identification of the power supplier and purchaser with complete legal details
2. Background: Context of the agreement including facility details and purpose of the arrangement
3. Definitions and Interpretation: Definitions of technical and commercial terms used in the agreement
4. Supply Obligations: Core obligations regarding power supply, including quantity and quality specifications
5. Technical Requirements: Technical standards, connection requirements, and compliance with Grid Code
6. Metering and Testing: Requirements for measuring supplied power and testing procedures
7. Price and Payment: Tariff structure, billing procedures, and payment terms
8. Operation and Maintenance: Responsibilities for maintaining supply infrastructure and operational protocols
9. Force Majeure: Events constituting force majeure and consequent rights and obligations
10. Term and Termination: Duration of agreement and grounds for termination
11. Liability and Indemnification: Allocation of risks and responsibilities between parties
12. Dispute Resolution: Procedures for resolving disputes including arbitration provisions
13. Governing Law: Specification of Malaysian law as governing law and jurisdiction
14. General Provisions: Standard boilerplate clauses including notices, amendments, and assignments
1. Environmental Compliance: Required when power generation involves environmental considerations or renewable energy sources
2. Emergency Procedures: Needed for critical supply arrangements requiring specific emergency protocols
3. Security Package: Include when additional financial security or performance guarantees are required
4. Step-in Rights: Necessary for agreements involving critical infrastructure or public utilities
5. Change in Law: Important when long-term agreements need provisions for regulatory changes
6. Interface Obligations: Required when multiple parties are involved in the supply chain
7. Insurance: Detailed insurance requirements beyond standard provisions
1. Technical Specifications: Detailed technical parameters of power supply and equipment specifications
2. Testing Procedures: Detailed procedures for testing and commissioning
3. Tariff and Payment Calculations: Detailed pricing formula and calculation methodologies
4. Performance Standards: Specific performance metrics and standards to be maintained
5. Single Line Diagram: Technical diagram showing electrical connection arrangement
6. Site Description: Details and drawings of facility location and connection points
7. Operating Procedures: Detailed procedures for day-to-day operations
8. Forms and Notices: Standard forms for various notices and reports required under the agreement
9. Interconnection Requirements: Technical requirements for grid connection
10. Emergency Contact Details: List of emergency contacts and escalation procedures
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