A Power Supply Agreement is essential for establishing legally binding arrangements for the supply of electrical power in Nigeria. This document is typically used when a power generator or supplier enters into an arrangement to provide electricity to a distribution company, large industrial consumer, or commercial facility. The agreement must comply with the Electric Power Sector Reform Act 2005 and various NERC regulations, including tariff orders and technical standards. It covers crucial aspects such as supply obligations, technical specifications, pricing mechanisms, performance standards, and operational procedures. The document is particularly important in the Nigerian context due to the complex regulatory environment and the need to ensure reliable power supply in a challenging infrastructure landscape.
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1. Parties: Identification and details of the power supplier and purchaser
2. Background: Context of the agreement including supplier's authority to generate/supply power and purchaser's requirements
3. Definitions and Interpretation: Definitions of technical and legal terms, rules of interpretation
4. Term and Effectiveness: Duration of agreement, conditions precedent, and effectiveness date
5. Supply Obligations: Core obligations regarding power supply, including quantity and quality specifications
6. Connection and Delivery Point: Technical specifications of where and how power will be delivered
7. Metering and Testing: Requirements for measuring supplied power and testing procedures
8. Price and Payment Terms: Pricing structure, billing procedures, and payment obligations
9. Performance Security: Security deposits or guarantees required from either party
10. Operation and Maintenance: Responsibilities for maintaining supply infrastructure
11. Force Majeure: Events excusing performance and procedures for handling force majeure
12. Default and Termination: Events of default, remedies, and termination procedures
13. Liability and Indemnification: Allocation of risks and responsibilities between parties
14. Dispute Resolution: Procedures for resolving disputes between parties
15. Governing Law: Applicable law and jurisdiction
1. Renewable Energy Requirements: Used when supply involves renewable energy sources, including specific regulatory compliance
2. Carbon Credits: Include when there are carbon credit or environmental attribute considerations
3. Step-in Rights: Required when lenders or regulatory authorities need right to step in and operate
4. Local Content Requirements: Include when Nigerian local content laws apply to the project
5. Currency Conversion: Needed when payments involve foreign currency considerations
6. Insurance: Detailed insurance requirements beyond standard coverage
7. Emergency Procedures: Special procedures for emergency situations affecting power supply
8. Change in Law Provisions: Detailed provisions for handling regulatory changes affecting the agreement
1. Technical Specifications: Detailed technical parameters of power supply including voltage, frequency, etc.
2. Pricing Formula: Detailed calculation of pricing including adjustments and escalation
3. Testing and Commissioning Procedures: Procedures for initial and periodic testing of supply
4. Metering Specifications: Technical details of metering equipment and procedures
5. Performance Standards: Detailed performance requirements and metrics
6. Interface Specifications: Technical specifications for connection points and interfaces
7. Operating Procedures: Detailed procedures for day-to-day operations
8. Emergency Contact Details: List of emergency contacts and escalation procedures
9. Required Permits and Authorizations: List of all required regulatory permits and licenses
10. Form of Performance Security: Template for performance bonds or other security instruments
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