Igloo Energy

ARCHIVED: This Practice Note has been archived and is not maintained. This Practice Note provides a snapshot on the Energy Act 2016 (EnA 2016), which includes the background to EnA 2016 and summarises its key provisions. It was produced in partnership with Matthew Collinson.

This Precedent provides basic ‘market’ architecture for the connection to and use of an electricity distribution network by an electricity generator, where the network is operated under an exemption from the requirement for a licence under section 6 of the Electricity Act 1989 (a ‘private wire’). As is usual for connection agreements, this Precedent does not provide for the construction of the connection—only the on-going physical interface between the generator’s equipment (‘Customer’s Installation’) and the private wire (‘Distribution System’).

This Precedent is a fuel supply agreement for the purchase of fuel by a generator from a fuel supplier. It was drafted on the basis that the generator is a biomass generator but can be adapted for other fuels. It was produced in partnership with Matthew Collinson. Key provisions include commencement and duration, purchase of fuel, delivery and offloading of fuel, conformity of fuel with a specification, payment, termination and liability.

This Precedent is a Power Purchase Agreement (PPA) or power supply agreement for the sale of electricity by a generator to an offtaker for consumption rather than resale (private supply). This type of PPA is also commonly referred to as a ‘private wire power purchase agreement’ or ‘private wire PPA’. It is drafted on the basis that the generator benefits from an exemption from the requirement to have an electricity supply licence under section 5 of the Electricity Act 1989. Key provisions include commencement and duration, commercial operations date, sale of electricity, operation of the facility, metering, payment, termination and liability, termination and breakage costs.