Power Supply Agreement

Power Supply Agreement Template for Denmark

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Document background

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.

Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

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