Power Supply Agreement for the United Kingdom

Power Supply Agreement Template for England and Wales

A Power Supply Agreement is a legally binding contract governed by the laws of England and Wales that establishes the terms and conditions for the supply of electricity between a licensed power supplier and a customer. The agreement covers essential aspects including supply specifications, pricing mechanisms, payment terms, delivery points, quality standards, and operational requirements. It incorporates relevant provisions from the Electricity Act 1989 and subsequent energy legislation, while ensuring compliance with Ofgem regulations.

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What is a Power Supply Agreement?

Power Supply Agreements are essential contracts used to establish and regulate the commercial relationship between electricity suppliers and consumers in England and Wales. These agreements are particularly crucial when businesses or organizations require dedicated power supply arrangements, whether for standard operations or specialized needs such as high-volume consumption or renewable energy requirements. The Power Supply Agreement encompasses all necessary technical, commercial, and legal provisions, ensuring compliance with the Electricity Act 1989 and related regulations while providing clarity on supply obligations, pricing structures, and operational responsibilities.

What sections should be included in a Power Supply Agreement?

1. Parties: Identification and details of the supplier and customer

2. Background: Context of the agreement and relationship between parties

3. Definitions: Key terms used throughout the agreement including regulatory references

4. Supply Obligations: Core obligations regarding power supply, including quantity, quality and compliance with Grid Code and Distribution Code

5. Pricing and Payment: Payment terms, rates, billing procedures and price adjustment mechanisms

6. Term and Termination: Duration of agreement, renewal terms and termination provisions

7. Metering: Requirements for measuring supply and consumption, compliance with metering codes

8. Liability and Insurance: Limits of liability, indemnification and required insurance coverage

9. Force Majeure: Circumstances excusing performance and related procedures

10. Governing Law and Disputes: Application of English and Welsh law and dispute resolution procedures

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

1. Green Energy Provisions: Specific provisions for renewable energy supply and compliance with Renewable Energy Obligations

2. Load Management: Provisions for managing peak loads and demand response mechanisms

3. Emergency Procedures: Protocol for supply interruptions and emergencies, particularly relevant for critical infrastructure customers

4. Data Protection: Specific provisions regarding handling of customer data under UK GDPR and Data Protection Act 2018

5. Change in Law: Procedures for addressing changes in applicable energy regulations and legislation

What schedules should be included in a Power Supply Agreement?

1. Schedule 1 - Supply Points: Details of all supply points and technical specifications

2. Schedule 2 - Pricing Structure: Detailed pricing structure, rate calculations and adjustment mechanisms

3. Schedule 3 - Service Level Agreement: Specific performance standards, metrics and remedies

4. Schedule 4 - Metering Specifications: Technical details of metering arrangements and equipment requirements

5. Schedule 5 - Emergency Contacts: List of key contacts for operational and emergency situations

6. Schedule 6 - Compliance Requirements: Detailed regulatory compliance obligations and reporting 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

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Electricity Act 1989: Primary legislation establishing framework for electricity generation, transmission, and supply, including licensing requirements and consumer protection provisions

Utilities Act 2000: Provides regulatory framework updates, competition provisions, and consumer protection measures for utility services

Energy Acts (2004-2013): Series of acts establishing modern regulatory requirements, sustainability obligations, and infrastructure provisions for the energy sector

Electricity Supply Regulations 1988: Detailed regulations governing electricity supply operations and standards

Grid Code: Technical specifications and procedures for connection and use of the National Grid system

Distribution Code: Technical parameters and rules for operating the electricity distribution system

Balancing and Settlement Code (BSC): Rules for electricity trading arrangements and balancing mechanism in Great Britain

Connection and Use of System Code (CUSC): Framework for connection to and use of the National Grid electricity transmission system

Climate Change Act 2008: Legislative framework for reducing greenhouse gas emissions and meeting climate change obligations

Renewable Energy Obligations: Requirements for electricity suppliers to source increasing portions of electricity from renewable sources

Energy Savings Opportunity Scheme Regulations 2014: Mandatory energy assessments for large organizations to identify energy efficiency savings

Consumer Rights Act 2015: Consolidates consumer protection law, including rights and remedies in relation to contracts for goods and services

Unfair Contract Terms Act 1977: Regulates unfair terms in contracts, particularly regarding limitation of liability

Supply of Goods and Services Act 1982: Implies terms about quality of service and fitness for purpose in service contracts

Health and Safety at Work Act 1974: Primary legislation for workplace health and safety, applicable to power supply operations

Electricity Safety, Quality and Continuity Regulations 2002: Specific safety requirements for electricity supply and distribution systems

UK GDPR: Post-Brexit data protection regulation governing personal data processing and protection

Data Protection Act 2018: UK's implementation of data protection standards, working alongside UK GDPR

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What is a Power Supply Agreement?

What sections should be included in a Power Supply Agreement?

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

What schedules should be included in a Power Supply Agreement?

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