Practice note. It is not clear whether, if the Retailer went into receivership and the Retailer is a customer of the Bank, the Bank would be prepared to waive any right of set off. The Distributor is advised to check with the Bank if the Retailer uses the same bank. Paragraph (d) of clause 12.24 below requires the Retailer to inform the Distributor of the bank(s) the Retailer uses.
Practice note. In clause 26.6, $2,000,000 is a minimum value that may be increased (but should not be decreased) if the parties agree. Clause 26.6 is intended to provide a useful formula for calculating the liability cap by reference to the number of ICPs connected to the Network at which the Retailer supplied electricity on the day of the relevant event. However, the parties should amend this formula where its application would lead to an unreasonably low liability cap (e.g. if the relevant Retailer has a large market share in the electricity market, but trades with a low number of ICPs on the Network).
Practice note. Clause 12.1 applies if the Distributor requires that the Retailer comply with prudential requirements. The prudential requirements must comply with clauses 12A.4
Practice note. This MUoSA assumes that no load management services are provided by a party other than the Distributor or the Retailer (i.e. a load aggregator). The Electricity Authority will continue to monitor the development of possible third party entry into the market for load management services.
Practice note. The basis of this model conveyance agreement is as follows:
Practice note. Clause 12A.4 of the Code provides that the value of acceptable security that the Distributor may require from the Retailer is the Distributor's reasonable estimate of the line function service charges that the Retailer will be required to pay to the Distributor in respect of any period of not more than 2 weeks. If, however, the Retailer elects to provide acceptable security in accordance with clause 12.1(b), the Distributor may require additional security, provided that the total value of all security required is no more than the Distributor's reasonable estimate of the line function service charges that the Retailer will be required to pay the Distributor in respect of any 2 month period. The Distributor must comply with clause 12A.5 of the Code if additional security is required. If additional security is or may be required, clauses 12.7 and 12.8 should be inserted:
Practice note. Insert whichever is relevant
Practice note. The definition of Finance Documents will only be required if the Borrower will be providing security to the Lender. If no security will be provided the definition of Finance Documents should be deleted and all references in this Agreement to “the Finance Documents” should be replaced with “this Agreement”.
Practice note. Delete if irrelevant
Practice note. Insert 0 and 0 if the Borrower will repay the Loan in monthly instalments. Modify repayment profile as may be necessary.
