Shortage of Fuel Clause Samples
The 'Shortage of Fuel' clause defines how contractual obligations are affected if there is a lack of fuel necessary for performance. Typically, this clause outlines the procedures parties must follow if a fuel shortage occurs, such as notifying the other party, prioritizing deliveries, or temporarily suspending certain obligations. Its core function is to allocate risk and provide a clear process for handling disruptions caused by fuel shortages, thereby minimizing disputes and ensuring both parties understand their rights and responsibilities in such situations.
Shortage of Fuel. In the event the Supplier anticipates a shortfall in the production of electricity for supply to the Utility from Contracted Capacity on account of a shortfall in Fuel for reasons beyond the control of the Supplier, the Supplier shall, as soon as practicable but in any event no later than 7 (seven) days from the date when it anticipated the shortage of Fuel, notify the Utility of the nature, extent and period of shortage of Fuel and the reasons thereof. For the avoidance of doubt, the Parties expressly agree that no Tariff shall be payable to the Supplier for any shortfall in Availability occurring on account of shortage of Fuel, save and except as provided in Clause 11.4.5.
Shortage of Fuel. In the event the Aggregator anticipates a shortfall in the production of electricity for supply to the Utility from Contracted Capacity on account of a shortfall in Fuel for reasons beyond the control of the Supplier, the Aggregator shall, as soon as practicable but in any event no later than 7 (seven) days from the date when it anticipated the shortage of Fuel, notify the Utility of the nature, extent and period of shortage of Fuel and the reasons thereof. For the avoidance of doubt, the Parties expressly agree that no Tariff shall be payable to the Aggregator for any shortfall in Availability occurring on account of shortage of Fuel.