Prepaid Power Purchase Agreement Template for South Africa

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Key Requirements PROMPT example:

Prepaid Power Purchase Agreement

"I need a Prepaid Power Purchase Agreement for a commercial office building in Cape Town that will house multiple tenants, with the building owner acting as the primary customer and the ability to sub-meter to individual tenants, planned to commence from March 2025."

Document background
The Prepaid Power Purchase Agreement is essential for establishing legally sound relationships between electricity suppliers and consumers in South Africa who opt for prepaid electricity services. This document type has become increasingly important with the growing adoption of prepaid electricity systems across South African municipalities and private suppliers. It addresses key aspects including technical specifications for prepaid metering, payment mechanisms, service standards, and compliance with South African electricity regulations and consumer protection laws. The agreement is particularly relevant in context of the country's energy challenges, providing a structured approach to electricity supply management while protecting both supplier and consumer interests. It incorporates requirements from multiple regulatory frameworks including NERSA guidelines, the Electricity Regulation Act, and the Consumer Protection Act.
Suggested Sections

1. Parties: Identification of the power supplier and the customer, including registration details and physical addresses

2. Background: Context of the agreement, including the supplier's authority to provide electricity and the customer's intention to purchase on a prepaid basis

3. Definitions and Interpretation: Definitions of key terms and interpretation rules, including technical terms related to prepaid electricity

4. Supply of Electricity: Core terms regarding the supply of electricity, including connection points and supply specifications

5. Prepaid Metering System: Details of the prepaid meter installation, ownership, and operation

6. Payment and Pricing: Pricing structure, payment methods, and credit purchase procedures

7. Customer Obligations: Customer responsibilities including meter access, safety compliance, and usage restrictions

8. Supplier Obligations: Supplier commitments regarding service quality, maintenance, and customer support

9. Term and Termination: Duration of the agreement and termination provisions

10. Interruption of Supply: Circumstances under which supply may be interrupted and notice requirements

11. Liability and Indemnity: Allocation of risks and limitation of liability provisions

12. Dispute Resolution: Procedures for handling disputes between parties

13. General Provisions: Standard contractual provisions including notices, amendments, and governing law

Optional Sections

1. Force Majeure: Optional section for agreements where specific force majeure provisions are required beyond standard interruption provisions

2. Load Limiting: Required if the agreement includes provisions for automatic load limiting during peak periods or system constraints

3. Green Energy Options: Optional section for agreements offering renewable energy options or carbon offset programs

4. Smart Meter Features: Required if the prepaid meter includes advanced features like remote monitoring or time-of-use pricing

5. Resale of Electricity: Required if the customer may potentially resell electricity to sub-customers

6. Municipal Requirements: Required if the supply point falls under specific municipal jurisdiction with additional requirements

Suggested Schedules

1. Schedule 1: Pricing Schedule: Detailed breakdown of tariffs, charges, and fees

2. Schedule 2: Technical Specifications: Technical details of the connection point, meter specifications, and installation requirements

3. Schedule 3: Service Level Agreement: Detailed service standards, response times, and performance metrics

4. Schedule 4: Prepaid Meter Operating Instructions: User guide for the prepaid meter system and credit purchasing procedures

5. Appendix A: Emergency Contact Information: List of emergency contacts and procedures for both parties

6. Appendix B: Applicable Municipal Bylaws: Reference to relevant municipal regulations affecting the service

7. Appendix C: Consumer Rights Notice: Mandatory notice of consumer rights under South African law

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Energy and Utilities

Residential Property

Commercial Property

Industrial Manufacturing

Retail

Mining

Agriculture

Hospitality

Healthcare

Education

Government Services

Relevant Teams

Legal

Operations

Facilities Management

Property Management

Procurement

Compliance

Risk Management

Commercial

Technical Services

Customer Service

Contract Administration

Utilities Management

Relevant Roles

Legal Counsel

Energy Manager

Facilities Manager

Property Manager

Operations Director

Procurement Manager

Compliance Officer

Risk Manager

Commercial Director

Technical Manager

Customer Service Manager

Contract Administrator

Utility Manager

Building Services Manager

Energy Procurement Specialist

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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