JSA Prism | Power | December 2022

CERC allows Force Majeure relief to the affected party after holding that the other party had ‘constructive notice’ of the Force Majeure event

On November 25, 2022, the Central Electricity Regulatory Commission (“CERC”) granted, inter alia, Force Majeure reliefs to the affected party by holding that the other party had sufficient knowledge of the Force Majeure event and same amounts to ‘constructive notice’ of the Force Majeure event. The decision confirms that if the other party has the knowledge of Force Majeure event, then the affected party ought not to be deprived of the Force Majeure reliefs. However, the decision cannot be seen as a precedent for claiming Force Majeure reliefs without the issuance of a Force Majeure notice in strict compliance with the provisions of a power purchase agreement.

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