Common use of Relief for Change in Law Clause in Contracts

Relief for Change in Law. 11.4.1 The aggrieved Party shall be required to approach the MERC for seeking approval of such Change in Law. 11.4.2 If a Change in Law results in any adverse financial loss/ gain to the SPV then, in order to ensure that the SPV is placed in the same financial position as it would have been had it not been for the occurrence of the Change in Law, the SPV / MSEDCL (as relevant) shall be entitled to compensation by the other party, subject to the condition that the quantum and mechanism of compensation payment shall be determined and shall be effective from such date as may be decided by the MERC. 11.4.3 If a Change in Law results in the SPV’s costs directly attributable to the Project being decreased or increased by 1% (one percent), of the estimated revenue from the electricity for the Contract Year for which such adjustment becomes applicable or more, during the Term, the Tariff to the SPV shall be appropriately increased or decreased with due approval of MERC. 11.4.4 In case of approval of Change in Law by MERC and the same results in any increase or decrease in the cost of generation, the said increase/decrease in cost shall be passed on in Tariff as per the formula below: Allowable Change in Law Compensation (P) = Actual per MW variation in expenses on account of Change in Law event x Allowable DC Capacity for Change in Law compensation. Then, the modification in Tariff (“MT”) for compensating the financial impact is given by M.T. = Y/X Where X = estimated monthly electricity generation (in kWh) = (1/12) X [Contracted Capacity of the RE power plant as per PPA (in MW) x Annual CUF declared in PPA (in %) x 8760-hour x 10]. and Y = [(PxMr){(1+Mr) n}] ÷ [{(1+Mr) n}-1] where, n = no. of months over which the financial impact has to be paid; and Mr = monthly rate of interest =; where R = annual rate of interest equal to 125 basis points above the average SBI 1 Year MCLR Rate prevalent during the last available 6 (six) months for such period. Further, the MT shall be trued up annually based on actual generation of the year so as to ensure that the payment to the SPV is capped at the yearly Change in Law amount. 11.4.5 MSEDCL or the SPV, as the case may be, shall provide the other Party with a certificate stating that the adjustment in the Tariff is directly as a result of the Change in Law and shall provide supporting documents to substantiate the same and such certificate shall correctly reflect the increase or decrease in costs. 11.4.6 The revised tariff shall be effective from the date of such Change in Law as approved by MERC, the Parties hereto have caused this Agreement to be executed by their fully authorized officers, and copies delivered to each Party, as of the day and year first above stated. 11.4.7 The decision of the MERC to acknowledge a Change in Law and the date from which it will become effective, provide relief for the same, shall be final and governing on both the Parties. 11.4.8 For the excess amount to be recovered against the approved Change in Law events, shall not attract any carrying costs or any other interest on such amount. 11.4.9 For the avoidance of doubt, it is clarified that the benefit of this Article 11 shall be available to the SPV only in respect of such Units which have achieved Commercial Operation Date and are affected by the Change in Law.

Relief for Change in Law. 11.4.1 The aggrieved Party shall be required to approach the MERC for seeking approval of such Change in Law. 11.4.2 If a Change in Law results in any adverse financial loss/ gain to the SPV then, in order to ensure that the SPV is placed in the same financial position as it would have been had it not been for the occurrence of the Change in Law, the SPV / MSEDCL (as relevant) shall be entitled to compensation by the other party, subject to the condition that the quantum and mechanism of compensation payment shall be determined and shall be effective from such date as may be decided by the MERC. 11.4.3 If a Change in Law results in the SPV’s SPV‟s costs directly attributable to the Project being decreased or increased by 1% (one percent), ) of the estimated revenue from the electricity for the Contract Year for which such adjustment becomes applicable or more, during the Term, the Tariff to the SPV shall be appropriately increased or decreased with due approval of MERC. 11.4.4 In case of approval of Change in Law by MERC and the same results in any increase or decrease in the cost of generation, the said increase/decrease in cost shall be passed on in Tariff as per the formula below: Allowable Change in Law Compensation (P) = Actual per MW variation in expenses on account of Change in Law event x Allowable DC Capacity capacity for Change in Law compensation. Then, the modification in Tariff (“MT”) for compensating the financial impact is given by M.T. = Y/X Where X = estimated monthly electricity generation (in kWh) = (1/12) X [Contracted Capacity of the RE power plant as per PPA (in MW) x Annual Declared CUF declared in PPA (in %) x 8760-hour x 10]. and Y = [(PxMr){(1+Mr) n}] ÷ [{(1+Mr) n}-1] where, n = no. of months over which the financial impact has to be paid; and Mr = monthly rate of interest =; where R = annual rate of interest equal to 125 basis points above the average SBI 1 Year MCLR Rate prevalent during the last available 6 (six) months for such period. Further, the MT shall be trued up annually based on actual generation of the year so as to ensure that the payment to the SPV is capped at the yearly Change in Law amount. Any such change, shall be considered upto three digits after the decimal point, and remaining digits, if any, shall be ignored. For e.g. in case the change in tariff payable is calculated as Rs. 0.14678/kWh, it shall be modified as Rs. 0.146/kWh. 11.4.5 MSEDCL or the SPV, as the case may be, shall provide the other Party with a certificate stating that the adjustment in the Tariff is directly as a result of the Change in Law and shall provide supporting documents to substantiate the same and such certificate shall correctly reflect the increase or decrease in costs. 11.4.6 The revised tariff shall be effective from the date of such Change in Law as approved by MERC, the Parties hereto have caused this Agreement to be executed by their fully authorized officers, and copies delivered to each Party, as of the day and year first above stated. 11.4.7 The decision of the MERC to acknowledge a Change in Law and the date from which it will become effective, provide relief for the same, shall be final and governing on both the Parties. 11.4.8 For the excess amount to be recovered against the approved Change in Law events, shall not attract any carrying costs or any other interest on such amount. 11.4.9 For the avoidance of doubt, it is clarified that the benefit of this Article 11 shall be available to the SPV only in respect of such Units which have achieved Commercial Operation Date and are affected by the Change in Law.