AEMO Liability Cap Clause Samples
The AEMO Liability Cap clause sets a maximum limit on the amount of financial liability that the Australian Energy Market Operator (AEMO) can incur under a contract or regulatory framework. In practice, this means that if AEMO is found liable for damages or losses—such as those arising from market operations, system failures, or errors—its total financial responsibility cannot exceed the specified cap, regardless of the actual loss suffered. This clause is essential for providing certainty and risk management to both AEMO and counterparties, as it prevents potentially unlimited financial exposure and helps parties assess and allocate risk more effectively.
AEMO Liability Cap. (a) Subject to paragraph (b) and other than in respect of any unpaid Charges, the total amount recoverable from AEMO in respect of any and all Claims arising out of any one or more events during the Term with respect to, arising from, or in connection with, this Agreement or the provision of SRAS is limited to a maximum aggregate amount of $5,000,000.
(b) Regardless of the nature of any Claim, AEMO is not liable in any circumstances for any:
(i) damages or losses that are not direct and do not flow naturally from a breach of this Agreement, even if they may reasonably be supposed to have been in the contemplation of both parties as a probable result of the breach at the time they entered into this Agreement;
(ii) loss of market, opportunity or profit (whether direct or indirect); or
(iii) damages or losses to the extent that a Claim results from the SRAS Provider’s failure to act in accordance with this Agreement, a Law or good electricity industry practice.
AEMO Liability Cap. (a) Subject to paragraph (b) and other than in respect of any unpaid Charges, the total amount recoverable from AEMO in respect of any and all Claims arising out of any one or more events during the Term with respect to, arising from, or in connection with, this Agreement or the provision of NSCAS is limited to a maximum aggregate amount of $5,000,000.
(b) Regardless of the nature of any Claim, AEMO is not liable in any circumstances for any:
(i) damages or losses that are not direct and do not flow naturally from a breach of this Agreement, even if they may reasonably be supposed to have been in the contemplation of both parties as a probable result of the breach at the time they entered into this Agreement;
(ii) loss of market, opportunity or profit (whether direct or indirect); or
(iii) damages or losses to the extent that a Claim results from the NSCAS Provider’s failure to act in accordance with this Agreement, a Law or good electricity industry practice.
AEMO Liability Cap. Subject to paragraph (b) and other than in respect of any unpaid Service Charges, the total amount recoverable from AEMO in respect of any and all Claims arising out of any one or more events during the Term with respect to, arising from, or in connection with, this Agreement or the provision of a Service is limited to a maximum aggregate amount of $5,000,000. Regardless of the nature of any Claim, AEMO is not liable in any circumstances for any: damages or losses that are not direct and do not flow naturally from a breach of this Agreement, even if they may reasonably be supposed to have been in the contemplation of both parties as a probable result of the breach at the time they entered into this Agreement; loss of market, opportunity or profit (whether direct or indirect); or damages or losses to the extent that a Claim results from Service Provider’s failure to act in accordance with this Agreement, a Law or good electricity industry practice.