Unlike. a Concession Agreement, this Connection and Adoption Agreement together with the Framework Supply Agreement do not cover the following (on the basis that the Developer is “connecting to” an Energy System rather than granting a Concession for the development of an Energy System): Governance of ESCo’s Financial Model; Detailed governance of the build out of the Energy System; Detailed Operation and Maintenance regime for the Energy System; A planned Plant Replacement regime. It is assumed that the connection of separate buildings or plots (within which heat consumers are located on the Development) to ESCo’s Energy System will be governed by the Connection and Supply Agreement (Plot/ Building). The technical specification – Schedule 4 is where the technical specification is to be set out, detailing the technical requirements that the Contractor is required to comply with. This could be drafted as a detailed specification of technical system requirements. Alternatively, an outcomes based approach could be adopted and this is indicated through drafting notes. The structuring assumption and risk allocation underlying this Connection and Adoption Agreement is far from the only possible or valid structure and, even adopting the structure described above, there could be a wide range of variant approaches to aspects of the commercial structuring and contracting matrix. Therefore, it is very likely that this template Connection and Adoption Agreement will serve only as a starting point for drafting of an agreement that will need to be tailored to the particular characteristics of a given district heating scheme. Public sector bodies should take into consideration any public accounting impacts when entering into agreements. THIS DOCUMENT IS RELEASED TO BE USED AS A DRAFTING TEMPLATE,
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Sources: Connection and Adoption Agreement, Connection and Adoption Agreement