s 41E Effect of directions on contracts
41E.—(1) This section applies where —(a) a direction under section 41B(1) applies to a person (A); and (b) in order for A to comply with the direction, A must —(i) take from another person less electricity than what A had contracted to take (including no electricity); (ii) provide another person with less electricity than what A had contracted to provide (including no electricity); or (iii) take from another person less fuel than what A had contracted to take (including no fuel), for the purpose of A generating electricity. (2) No action, suit or other legal proceedings lies against A for or in relation to A’s failure to comply with A’s contractual obligation as described in subsection (1)(b), to the extent that A’s failure is solely attributable to or occasioned by A’s compliance with the direction. (3) Where —(a) A’s failure is in relation to a contract that is part of a chain of supply; and (b) A’s failure results in any person (B) that is a party to some other contract in the chain of supply not being able to take or provide the electricity, or take fuel, which B had contracted to take or provide, no action, suit or other legal proceedings lies against B for or in relation to B’s failure to the extent that B’s failure is solely attributable to or occasioned by A’s failure. (4) Despite any rule of law, neither A’s failure nor B’s failure —(a) constitutes a breach of the contract with A or B (as the case may be) by which any other party to the contract may terminate the contract; or (b) constitutes an event by which the contract is frustrated, unless provided for in the contract pursuant to subsection (5). (5) Nothing in this section prevents the parties to a contract from specifically providing in the contract for the respective rights and obligations of the parties in the event a party to the contract is unable to take or provide electricity, or take fuel, in the amount contracted for as a result of —(a) the party complying with a direction under section 41B(1) applicable to the party; or (b) a party to some other contract in the same chain of supply as the firstmentioned contract complying with a direction under section 41B(1) applicable to the party to such other contract, or otherwise providing for the effect on the firstmentioned contract of any matter mentioned in paragraph (a) or (b). (6) Nothing in this section prevents the parties to a contract entered into before the date of commencement of section 17 of the Energy Transition Measures and Other Amendments Act 2024 from agreeing on or after that date, to make a specific provision in the contract for the respective rights and obligations of the parties mentioned in subsection (5).[Act 27 of 2024 wef 01/07/2025]