Common use of Practice note Clause in Contracts

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. In clause 26.618.6, $2,000,000 is a minimum value that may be increased (but should not be decreased) if the parties agree. Clause 26.6 18.6 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 NetworkICPs).