OfftakeconstraintsduetoBackdown Sample Clauses
The 'Offtake Constraints Due to Backdown' clause defines the conditions under which a party’s obligation to purchase or take delivery of a product or service is limited because of operational or regulatory restrictions, commonly referred to as 'backdown.' In practice, this clause typically applies in industries like energy or utilities, where grid operators may require a reduction in output or consumption due to system constraints or safety requirements. By specifying how and when offtake obligations can be reduced or suspended, the clause provides a clear mechanism for managing situations where full delivery or acceptance is not possible, thereby allocating risk and preventing disputes over non-performance caused by external constraints.
OfftakeconstraintsduetoBackdown. TheSPGandshallfollowtheforecastingand scheduling processas per the regulations inthisregard by theAppropriate Commission. In the eventuality of backdown, subject to the submissionof documentary evidences from the competent authority, the SPG shall be eligiblefor a minimum generation compensation, from , restricted to the followingandthere shall benoother claim,directlyorindirectlyagainst. ProvisionforGenerationCompensation DurationofBackdown Hours of Backdownduring a monthlybillingcycle . Mininum Generation Compensation = 100% of[(Average Generation per hour during the month) X(number of backdown hours during the month)] XPPA tariff Where, Average Generation per hour during themonth (kWh) = Total generation in the month (kWh) ÷Totalhoursofgenerationinthemonth The SPG shall not be eligible for any compensation in case the Backdown is onaccount of events like consideration of grid security or safety of any equipment orpersonnel or other such conditions. The Generation Compensation shall be paid aspartoftheenergybillforthesuccessive monthafter JMR.