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Fair play in efficiency guarantees

12th Nov 2021

Purchase agreements for power plants supplying power, steam, water or other utilities to their offtaker typically include guarantees to ensure that the plant is operated efficiently and maintained diligently over the contract term. In particular when the fuel is provided by the offtaker, the efficiency guarantee must be evaluated continuously, and deviations from the contracted guarantees may lead to significant bonuses or penalties on top of the payments for the supplied products.

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