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Electricity Supply Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Electricity Supply Agreement

I need an Electricity Supply Agreement for our new data center in Dubai Technology Park, with specific provisions for high-capacity power supply (20MW) and backup power systems, planned to commence from March 2025.

What is a Electricity Supply Agreement?

The Electricity Supply Agreement is a crucial document used in the United Arab Emirates to establish and regulate the relationship between electricity providers and consumers. It is essential for any business or entity requiring permanent electricity connection and supply in the UAE. The agreement ensures compliance with federal legislation such as Federal Law No. 2 of 2014 and emirate-specific regulations like Dubai Law No. 6 of 2011 or Abu Dhabi Law No. 2 of 1998. This document is particularly important given the UAE's complex regulatory framework where both federal and emirate-level authorities oversee different aspects of power supply. The agreement typically includes detailed technical specifications, pricing structures, service levels, and compliance requirements specific to the UAE market.

What sections should be included in a Electricity Supply Agreement?

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

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

3. Definitions: Detailed definitions of technical and legal terms used throughout the agreement

4. Supply Terms: Core obligations regarding electricity supply, including quantity, quality, and voltage specifications

5. Connection Requirements: Technical requirements for connection to the grid and maintenance of connection equipment

6. Metering: Specifications for metering equipment, reading procedures, and accuracy requirements

7. Charges and Payment: Pricing structure, payment terms, security deposits, and billing procedures

8. Security of Supply: Provisions regarding continuity of supply and management of interruptions

9. Access Rights: Terms for accessing premises for maintenance, meter reading, and emergency responses

10. Liability and Indemnity: Allocation of risks and responsibilities between parties

11. Force Majeure: Provisions for handling events beyond parties' reasonable control

12. Term and Termination: Duration of agreement, renewal terms, and termination rights

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

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

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

1. Green Energy Requirements: Special provisions for renewable energy supply, applicable when customer requires specific green energy targets

2. Load Management: Provisions for managing peak loads and demand response, relevant for large industrial customers

3. Backup Supply: Terms for backup power supply arrangements, applicable when customer requires additional supply security

4. Special Pricing Arrangements: Custom pricing structures for specific customer categories or usage patterns

5. Infrastructure Development: Terms for new infrastructure development, applicable when new connections or substantial upgrades are required

6. Multiple Site Provisions: Special terms for customers with multiple supply points

7. Power Quality Requirements: Specific power quality standards beyond standard specifications, relevant for sensitive equipment users

What schedules should be included in a Electricity Supply Agreement?

1. Schedule 1 - Technical Specifications: Detailed technical parameters including voltage levels, maximum demand, and power factor requirements

2. Schedule 2 - Connection Points: Detailed description and technical specifications of all connection points

3. Schedule 3 - Tariff Structure: Detailed breakdown of charges, including peak/off-peak rates and demand charges

4. Schedule 4 - Service Level Agreement: Specific performance standards and associated penalties/remedies

5. Schedule 5 - Metering Specifications: Technical details of metering equipment and accuracy requirements

6. Appendix A - Site Plans: Drawings showing connection points, meter locations, and relevant site infrastructure

7. Appendix B - Emergency Contacts: List of emergency contacts and escalation procedures

8. Appendix C - Regulatory Compliance Checklist: Checklist of applicable regulatory requirements and compliance measures

Authors

Alex Denne

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

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