Power Supply Agreement Template for Denmark

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Key Requirements PROMPT example:

Power Supply Agreement

I need a Power Supply Agreement for our manufacturing facility in Copenhagen, with an annual consumption of 50 GWh, including specific provisions for renewable energy certificates and demand response capabilities, starting from March 1, 2025.

What is a Power Supply Agreement?

The Power Supply Agreement is a fundamental document used to establish and regulate the commercial and technical relationship between electricity suppliers and consumers in Denmark. This agreement is essential for any business requiring power supply and must comply with Denmark's comprehensive energy regulatory framework, including the Electricity Supply Act and related regulations. The document is particularly important given Denmark's advanced energy market structure and ambitious green energy targets. It typically includes detailed provisions on supply conditions, pricing, technical requirements, environmental commitments, and regulatory compliance. The agreement needs to account for Denmark's unique energy market characteristics, including its high renewable energy penetration and sophisticated grid infrastructure. This template is suitable for both industrial and commercial customers, with adaptable provisions to accommodate different consumption patterns and specific requirements.

What sections should be included in a Power Supply Agreement?

1. Parties: Identification of the power supplier and the customer, including full legal names, registration numbers, and addresses

2. Background: Context of the agreement, including brief description of the supplier's authorization to supply electricity and the customer's requirement for power supply

3. Definitions: Definitions of key terms used throughout the agreement, including technical terms, market-specific terminology, and contract-specific definitions

4. Scope of Supply: Details of the electricity supply, including delivery point, voltage level, and maximum capacity

5. Term and Commencement: Duration of the agreement, including start date, initial term, and renewal provisions

6. Price and Payment Terms: Pricing structure, billing frequency, payment terms, and procedures for price adjustments

7. Metering and Billing: Requirements for metering, meter reading, billing procedures, and dispute resolution for billing matters

8. Quality of Supply: Standards for power quality, reliability commitments, and handling of interruptions

9. Customer Obligations: Customer's responsibilities including maintenance of installation, access rights, and notification requirements

10. Supplier Obligations: Supplier's commitments including compliance with regulations, maintenance of licenses, and service standards

11. Force Majeure: Events constituting force majeure and their consequences

12. Liability and Indemnification: Allocation of risks, limitation of liability, and indemnification obligations

13. Termination: Grounds for termination, notice requirements, and consequences of termination

14. Confidentiality: Obligations regarding confidential information and permitted disclosures

15. Governing Law and Disputes: Confirmation of Danish law as governing law and dispute resolution procedures

What sections are optional to include in a Power Supply Agreement?

1. Green Energy Requirements: Specific provisions for renewable energy supply, certificates, and reporting - included when customer requires specific green energy commitments

2. Demand Response: Terms for participation in demand response programs - included for customers with flexible consumption capabilities

3. Credit Support: Requirements for bank guarantees or other security - included for customers with specific credit risk profiles

4. Special Grid Requirements: Additional technical requirements for grid connection - included for high-voltage or special connection customers

5. Balancing Services: Terms for providing balancing services to the grid - included for customers participating in grid balancing

6. Data Protection: Detailed GDPR compliance terms - included when extensive personal data processing is involved

7. Change Control: Formal procedures for managing changes to supply arrangements - included for complex industrial supplies

8. Emergency Response: Specific procedures for emergency situations - included for critical infrastructure customers

What schedules should be included in a Power Supply Agreement?

1. Schedule 1 - Supply Points: Detailed list of supply points, including addresses, meter numbers, and technical specifications

2. Schedule 2 - Pricing Structure: Detailed pricing information, including base rates, adjustment mechanisms, and any special tariffs

3. Schedule 3 - Service Levels: Detailed service level agreements, including specific metrics and performance standards

4. Schedule 4 - Technical Specifications: Technical requirements and specifications for the power supply

5. Schedule 5 - Contact Details: List of key contacts and escalation procedures for both parties

6. Schedule 6 - Metering Requirements: Detailed specifications for metering equipment and procedures

7. Appendix A - Grid Code Compliance: Specific requirements for compliance with Danish Grid Code

8. Appendix B - Environmental Certificates: Details of green certificates and environmental compliance requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Energy & Utilities

Manufacturing

Industrial Production

Commercial Real Estate

Retail

Healthcare

Data Centers

Telecommunications

Agriculture

Mining

Food & Beverage

Chemical Industry

Hospitality

Education

Public Sector

Relevant Teams

Legal

Procurement

Operations

Facilities Management

Energy Management

Sustainability

Risk Management

Commercial

Technical Operations

Environmental Compliance

Finance

Business Development

Contract Management

Relevant Roles

Energy Procurement Manager

Facilities Manager

Operations Director

Chief Technical Officer

Sustainability Manager

Legal Counsel

Contract Manager

Energy Trading Manager

Commercial Director

Chief Financial Officer

Environmental Compliance Officer

Risk Manager

Technical Operations Manager

Procurement Specialist

Energy Manager

Business Development Manager

Utility Relations Manager

Industries
Danish Electricity Supply Act (Elforsyningsloven): Primary legislation governing electricity supply, distribution, and trading in Denmark. Covers licensing requirements, consumer rights, and obligations of power suppliers.
Danish Contracts Act (Aftaleloven): Fundamental law governing contract formation, validity, and enforcement in Denmark. Essential for the basic contractual framework of the power supply agreement.
Danish Consumer Contracts Act (Forbrugeraftaleloven): Provides specific protection for consumers in contractual relationships, including requirements for information disclosure and right of withdrawal.
Danish Energy Agreement of 2018: Political agreement setting framework for Denmark's energy policy, including green transition goals and renewable energy requirements.
Danish Grid Code (Tekniske forskrifter): Technical regulations for connection to and use of the electricity grid, maintained by the Danish TSO Energinet.
Danish Marketing Practices Act (Markedsføringsloven): Regulates marketing practices and pricing transparency, relevant for power supply pricing and marketing communications.
Danish Energy Agency Guidelines: Administrative guidelines and requirements for energy suppliers, including reporting obligations and compliance requirements.
Danish Renewable Energy Act (VE-loven): Legislation promoting renewable energy sources and setting requirements for green energy content in power supply.
Danish Personal Data Act (Databeskyttelsesloven): Implements GDPR requirements for handling customer data in power supply relationships.
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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