Power Supply Agreement Template for Hong Kong

A Power Supply Agreement governed by Hong Kong law is a comprehensive contract that establishes the terms and conditions for the supply of electrical power between a power utility company and a customer. The agreement is structured within Hong Kong's unique regulatory framework, which primarily involves two major power companies operating under Scheme of Control Agreements with the government. The document covers essential aspects including supply specifications, pricing mechanisms, maintenance responsibilities, regulatory compliance requirements, and risk allocation, while adhering to Hong Kong's electricity regulations and environmental standards.

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What is a Power Supply Agreement?

Power Supply Agreements are essential contracts in Hong Kong's electricity market, where two main utility companies operate under government oversight. These agreements are used when establishing a formal relationship between a power supplier and a customer requiring significant electrical supply, typically for commercial or industrial purposes. The Power Supply Agreement includes detailed technical specifications, pricing structures, and operational requirements, all compliant with Hong Kong's regulatory framework, including the Electricity Ordinance and relevant environmental regulations. The document is particularly important for businesses with substantial power needs or specific requirements for power quality and reliability, and it must align with Hong Kong's Scheme of Control Agreements that govern the power companies' operations.

What sections should be included in a Power Supply Agreement?

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

2. Background: Context of the agreement, including premises location and purpose of power supply

3. Definitions: Defined terms used throughout the agreement, including technical and regulatory terminology

4. Supply Obligations: Core obligations of the supplier regarding power provision, including quantity, quality, and reliability standards

5. Connection and Delivery Point: Specifications of where and how power will be delivered, including metering arrangements

6. Pricing and Payment Terms: Tariff structure, billing procedures, payment terms, and price adjustment mechanisms

7. Security and Credit Support: Requirements for security deposits or other credit support arrangements

8. Maintenance and Access: Rights and obligations regarding maintenance of equipment and access to premises

9. Force Majeure: Provisions dealing with events beyond parties' control affecting supply

10. Term and Termination: Duration of agreement, renewal provisions, and termination rights

11. Liability and Indemnification: Allocation of risks and responsibilities between parties

12. Regulatory Compliance: Obligations to comply with relevant Hong Kong regulations and standards

13. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and governing law

14. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment

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

1. On-site Generation: Required for agreements involving customer's own power generation facilities or renewable energy systems

2. Emergency Power Supply: Needed for customers requiring backup power arrangements or critical power supply

3. Environmental Requirements: Additional section for customers with specific environmental compliance needs or green energy requirements

4. Load Management: For customers participating in demand response programs or with specific load management requirements

5. Special Equipment Requirements: For customers with sensitive equipment requiring specific power quality standards

6. Interconnection Requirements: Required for customers connecting their own generation or distribution systems

What schedules should be included in a Power Supply Agreement?

1. Technical Specifications: Detailed technical requirements including voltage, frequency, and power quality parameters

2. Pricing Schedule: Detailed breakdown of tariffs, charges, and calculation methodologies

3. Connection Point Diagram: Technical drawings showing connection points and metering arrangements

4. Performance Standards: Specific metrics for power quality and reliability

5. Emergency Contact Information: List of key contacts and emergency procedures

6. Equipment Specifications: Details of major equipment installations and technical requirements

7. Metering Arrangements: Specifications for metering equipment and reading procedures

8. Maintenance Schedule: Planned maintenance schedules and procedures

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

Jurisdiction

Hong Kong

Publisher

Genie AI

Cost

Free to use

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