Template:EFET Allowance Annex 4.3: Difference between revisions

§ {{efetaprov|4.3}} '''{{efetaprov|Physical Settlement Netting}}'''<br>  

:(a) If this § {{efetaprov|4.3}} is specified as applying in Part II of this {{efetaprov|Allowances Appendix}}; if on any date {{efetaprov|Allowance}}s of the same {{efetaprov|Allowance Type}} and {{efetaprov|Compliance Period}} would otherwise be {{efetaprov|Transfer}}able in respect of two or more {{efetaprov|Allowance Transaction}}s between the Parties and between designated pairs of {{efetaprov|Holding Account}}s specified as applying in Part II of this {{efetaprov|Allowances Appendix}} or otherwise agreed between the Parties (the “'''{{efetaprov|Physical Settlement Netting Accounts}}'''”), then, on such date, each Party’s obligation to Schedule and {{efetaprov|Transfer}} any such {{efetaprov|Allowance}}s will be automatically satisfied and discharged and, if the aggregate number of {{efetaprov|Allowance}}s that would otherwise have been {{efetaprov|Transfer}}able by one Party exceeds the aggregate number of {{efetaprov|Allowance}}s that would otherwise have been {{efetaprov|Transfer}}able by the other Party, replaced by an obligation upon the Party from whom the larger aggregate number of {{efetaprov|Allowance}}s would have been {{efetaprov|Transfer}}able to Schedule and {{efetaprov|Transfer}} to the other Party a number of {{efetaprov|Allowance}}s (of the same {{efetaprov|Allowance Type}} and {{efetaprov|Compliance Period}}) equal to the excess of the larger aggregate number of {{efetaprov|Allowance}}s over the smaller aggregate number of {{efetaprov|Allowance}}s (the “'''{{efetaprov|Net Contract Quantity}}'''”) (such process hereinafter referred to as “'''{{efetaprov|Physical Settlement Netting}}'''”). In such circumstances the Party {{efetaprov|Transfer}}ring the {{efetaprov|Net Contract Quantity}} shall be the “'''{{efetaprov|Net Seller}}'''” and the Party receiving the {{efetaprov|Net Contract Quantity}}shall be the “'''{{efetaprov|Net Buyer}}'''”. In instances where the {{efetaprov|Net Contract Quantity}} for a given date and {{efetaprov|Delivery Point}} is zero, the Parties shall be released from any obligation to Schedule and {{efetaprov|Transfer}} or accept such {{efetaprov|Transfer}} in respect of the applicable {{efetaprov|Allowance Transaction}}s on such date. For the avoidance of doubt and subject to this § 4.3, the Parties fully intend at the time of entering into each {{efetaprov|Individual Contract}} that such {{efetaprov|Individual Contract}} will result in the physical {{efetaprov|Transfer}} of {{efetaprov|Allowance}}s.  

:(b) Unless otherwise provided, if there is more than one {{efetaprov|Allowance Transaction}} between the Parties providing for {{efetaprov|Transfer}} of {{efetaprov|Allowance}}s of the same {{efetaprov|Allowance Type}} and {{efetaprov|Compliance Period}} at the same {{efetaprov|Delivery Point}} on the same date, all references in the {{efetprov|General Agreement}}, this {{efetaprov|Allowances Appendix}} and an {{efetaprov|Individual Contract}} to a “'''Seller'''”, “'''Buyer'''”, “'''{{efetaprov|Contract Quantity}}'''” and “'''{{efetaprov|Individual Contract}}'''” shall be deemed to be references to, respectively, a “'''{{efetaprov|Net Seller}}'''”, a “'''{{efetaprov|Net Buyer}}'''”, a “'''{{efetaprov|Net Contract Quantity}}'''” and to all such {{efetaprov|Individual Contract}}s.  

:(c) For the avoidance of doubt, specifying {{efetaprov|Physical Settlement Netting Accounts}} under this § 4.3 (''{{efetaprov|Physical Settlement Netting}}''') need not preclude the Parties from designating {{efetaprov|Delivery Point}}(s) and/or {{efetaprov|Transfer Point}}s under § 4.1 (Delivery, Acceptance and Scheduling Obligations) nor is it intended to prohibit the Parties from limiting their rights and obligations in respect of any particular {{efetaprov|Allowance Transaction}} to {{efetaprov|Transfer}} and accept {{efetaprov|Transfer}} of {{efetaprov|Allowance}}s in accordance with § 4.1.