Template:EFET Allowance Annex 7: Difference between revisions

§ {{efetaprov|7}} '''{{efetaprov|Non-Performance Due to Force Majeure and Suspension Event}}''' <br>

For purposes of {{efetaprov|Allowance Transaction}}s, § {{efetprov|7}} of the {{efetprov|General Agreement}} is hereby deleted in its entirety and replaced with the following new § {{efetaprov|7}} (''{{efetaprov|Non-Performance due to Force Majeure and Suspension Event}}''): <br>

§ 7.1 '''{{efetaprov|Definition of Force Majeure}}'''. “'''{{efetaprov|Force Majeure}}'''” in the context of an {{efetaprov|Allowance Transaction}} means the occurrence of an event or circumstance beyond the control of the Party affected by {{efetaprov|Force Majeure}} (the “'''{{efetaprov|Affected Party}}'''”) that cannot, after using all reasonable efforts, be overcome and which makes it impossible for the {{efetaprov|Affected Party}}  to perform its {{efetaprov|Transfer}} or acceptance of {{efetaprov|Transfer}} obligations in accordance with the terms of this Agreement and the relevant Emissions Trading Scheme. [[For the avoidance of doubt]], but [[without limitation]], {{efetaprov|Force Majeure}} shall not include an event or circumstance where there are insufficient {{efetaprov|Allowance}}s in the relevant {{efetaprov|Holding Account}}(s) to effect the required Transfer, whether that insufficiency is caused by the low or non-allocation of {{efetaprov|Allowance}}s from a Member State or a Non-Member State, the delay or failure of a Member State or Central Administrator to replace {{efetaprov|Allowance}}s of the Third {{efetaprov|Compliance Period}} with {{efetaprov|Allowance}}s for the Fourth {{efetaprov|Compliance Period}} or the failure of that Party to procure sufficient {{efetaprov|Allowance}}s to meet its {{efetaprov|Transfer}} obligations. If an event or circumstance which would otherwise constitute or give rise to {{efetaprov|Force Majeure}} also constitutes a {{efetaprov|Suspension Event}}, it will be treated as a {{efetaprov|Suspension Event}} and will not constitute a {{efetaprov|Force Majeure}} event. <br>

§ {{efetaprov|7.2}} '''{{efetaprov|Suspension of Delivery and Acceptance Obligations}}'''. If a Party is fully or partly prevented due to {{efetaprov|Force Majeure}} from performing its obligations of {{efetaprov|Transfer}} or acceptance of Transfer, as applicable, under one or more {{efetaprov|Allowance Transaction}}s, no breach or default on the part of the {{efetaprov|Affected Party}}  shall be deemed to have occurred and the obligations of both Parties with respect to the relevant {{efetaprov|Allowance Transaction}}(s) will be suspended for the period of time and to the extent that such {{efetaprov|Force Majeure}} prevents their performance. During the continuation of {{efetaprov|Force Majeure}}, the {{efetaprov|Affected Party}}  shall continue to use all reasonable endeavours to overcome the {{efetaprov|Force Majeure}}. Subject to § {{efetaprov|7.4}} (''{{efetaprov|Settlement of Allowance Transaction Prevented by Force Majeure}}'') below, upon the {{efetaprov|Force Majeure}} event being overcome or it ceasing to subsist, both Parties will, as soon as reasonably practicable thereafter (and in any event no later than the second {{efetaprov|Delivery Business Day}} following the cessation or Parties overcoming such {{efetaprov|Force Majeure}} event), resume full performance of their obligations under the Agreement in respect of the relevant {{efetaprov|Allowance Transaction}}(s) (including, [[For the avoidance of doubt]], any suspended obligations).  

::(iii) '''{{efetaprov|Two-Way Loss Termination Payment}}'''. Each Party will determine its {{efetaprov|Loss}} in respect of the relevant {{efetaprov|Allowance Transaction}}(s) and an amount will be payable equal to one half of the difference between the {{efetaprov|Loss}} of the Party with the higher {{efetaprov|Loss}} (“X”) and the {{efetaprov|Loss}} of the Party with the lower {{efetaprov|Loss}} (“Y”). If the amount payable is a positive number, Y will pay it to X; if it is a negative number, X will pay the absolute value of such amount to Y.  

:Payments due under this § {{efetaprov|7.4}}(b) shall, unless otherwise agreed, be invoiced and made in accordance with the requirements of the {{efetaprov|Payment Cycle}} selected by the Parties in respect of § 13.2 (Payment).