Common use of Stranded Costs Clause in Contracts

Stranded Costs. (1) In the event that any of the parties considers that Stranded Costs may arise as a result of a Specified Market Change or a proposed Specified Market Change, HEC and the Government shall in good faith discuss, and HEC shall implement, such measures as are reasonably required by the Government to mitigate the amount of such Stranded Costs. Sch. 1(29) (2) HEC shall recover from the market Stranded Costs that cannot be mitigated by the measures referred to in sub- clause (1) (“Residual Stranded Costs”), in the amount and with the mechanism as determined and agreed under sub- clause (3) or, in the absence of such agreement, in the amount determined under clause 9. (3) No less than thirty-six months prior to the effective date of a Specified Market Change and in any event no later than 31 December 2020, the Government shall institute discussions with HEC for the purpose of:- (a) determining whether Stranded Costs are likely to arise from a Specified Market Change or a proposed Specified Market Change; (b) agreeing on the amount of the Residual Stranded Costs, if any, that may arise or has arisen; and (c) having regard to international practices, agreeing on the mechanism for the recovery from the market of the Residual Stranded Costs.

Stranded Costs. ‌‌ (1) In the event that any of the parties considers that Stranded Costs may arise as a result of a Specified Market Change or a proposed Specified Market Change, HEC and the Government and HEC shall in good faith discuss, and HEC shall implement, such measures as are reasonably required by the Government to mitigate the amount of such Stranded Costs. Sch. 1(29)Costs.‌ (2) HEC shall recover from the market Stranded Costs that cannot be mitigated by the measures referred to in sub- sub-clause (1) (“Residual Stranded Costs”), in the amount and with the mechanism as determined and agreed under sub- sub-clause (3) or, in the absence of such agreement, in the amount determined under clause 9.9.‌ (3) No less than thirty-six months prior to the effective date of a Specified Market Change and in any event no later than 31 31st December 20202030, the Government shall institute discussions with HEC for the purpose of:-of:-‌ (a) determining whether Stranded Costs are likely to arise from a Specified Market Change or a proposed Specified Market Change; (b) agreeing on the amount of the Residual Stranded Costs, if any, that may arise or has arisen; andand‌ (c) having regard to international practices, agreeing on the mechanism for the recovery from the market of the Residual Stranded Costs.Costs.‌