ARTICLE 7

FORCE MAJEURE

 

7.1

"Force Majeure" means any events or circumstance or combination of events or circumstances which is beyond the control of a party and results in or causes the failure of that party (the "non-performing party") to perform any of its obligations under this Agreement, and includes:-

 

(a)

act of war, invasion, armed conflict or blockade;

 

(b)

revolution, not or insurrection or civil commotion;

 

(c)

terrorism, sabotage, fire explosion or criminal damage;

 

(d)

act of God, including lighting, cyclone, typhoon, flood tidal wave, earthquake, landside, epidemic or similar cataclysmic event;

 

(e)

Strikes for a continuous period of 3 days;

 

(f)

the expropriation or compulsory acquisition by any Government or Governmental agency of the Bulk Supply Business or the Retail Supply Business; or

 

(g)

any other event or circumstances which could not have been prevented by the exercise by the non-performing Party of reasonable skill and diligence or otherwise by the observance by the non-performing Party of prudent utility practices.

7.2

Where a non-performing party is unable to perform its obligations under this Agreement by reason of Force Majeure, the non-performing party shall notify the other party as soon as practicable of the occurrence of Force Majeure, identifying the nature of the event or circumstances of Force Majeur, the expected duration of such Force Majeure, the particular obligation of the non-performing party which are affected by such Force Majeure and the period for which such obligation are expected to be so affected.

7.3

Subject to Clause 7.2, the obligations of the Parties under this Agreemetn shall be suspended only to the extent that:

 

(a)

such suspension is of no greater scope and no longer duration that is required by the effects of the relevant event or circumstances of Force Majure; and

 

(b)

the non-performing party uses all reasonable efforts to remedy, as soon as practicable, its inability to perform the affected obligations.

7.4

The Parties hereby clarify and agree that the Force MAjeure shall not in any manner release the COMPANY from the obligation to pay for Bulk Electricity actually taken from Transco and any amount outstanding for such Bulk Electricity supplied. However no party shall be liable for any claim, for any damage whatsoever arising out of failure to carry out the terms of the Agreement to the extent that such a damage is due to the Force Majeure.

 

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