POWER SUPPLY TERMS & CONDITIONS

Tatu City Power Company Limited – Energy supply agreement for property owners

WHEREAS the Property Owner is registered as proprietor of a leasehold interest over the Property (herein described) and has requested for supply of energy at the Property by the Provider;
The Provider has agreed to supply electricity to the Property Owner subject to continued compliance by the Property Owner (or any other owner, occupier or invitee) with the terms of this contract, and subject also to payment of the monies payable by the Property Owner to the Provider in accordance with this contract.

1. DEFINITION OF TERMS AND INTERPRETATION
1.1. Definition of Terms
1.1.1.“Acceptance Certificate” means a declaration by the Parties confirming that the delivery of energy may commence in accordance with these terms and conditions;
1.1.2.“Account” means the Provider’s records of the Property Owner’s particulars pertaining to consumption of energy at the Property;
1.1.3.“Affiliate” in relation to either party to this contract means any company or other entity which directly or indirectly controls such party or is controlled by such party or is under common control with such party;
1.1.4.“Aggrieved Party” means a Party who has suffered or is likely to suffer any loss or damage due to the Offending Party’s default;
1.1.5.“Business Day” means any day, excluding Saturdays, Sundays, National Days as defined in the Constitution of Kenya and gazette public holidays in the Republic of Kenya;
1.1.6.“Change of Control” means a change in the person or entity, or a group of related or associated persons or entities, entitled directly or indirectly to exercise or control the exercise of fifty per cent (50%) or more of the rights to vote at any general meeting of its shareholders or control the appointment of directors who are able to exercise a majority of votes at its board meetings; For these purposes “Control” of an entity that is not a natural person means the direct or indirect power to direct, or cause the direction of, the management or policies of the specified entity, through the ownership of shares, by contract or otherwise. The terms “Controlled by” and “under common Control with” shall be construed accordingly;
1.1.7.“Commercial Operation Date” means the last date of signature of the Acceptance Certificate by or on behalf of the Provider and the Property Owner;
1.1.8.“Confidential Information” shall include without limitation any technical commercial, scientific information, know-how, trade secrets, business ideas, processes machinery, designs, drawings, technical specifications and data in whatever form disclosed to or accessed by either Party or its affiliates, employees, agents or subcontractors during performance of the respective Parties’ obligations in connection with these terms and conditions;
1.1.9.“Connection Point” means the technical point where the Parties agree to connect their respective power infrastructure for purposes of delivery of energy to the Property;
1.1.10.“Declaration” means the Master Declaration of Covenants, Conditions and Restrictions (as modified from time to time) registered against the titles in respect of each parcel of land comprising the Service Area;
1.1.11.“Effective Date” means the last date of signature of these terms and conditions by the Parties;
1.1.12.“Energy” means electrical power;
1.1.13.“End User” includes but is not limited to any tenants, licensees, guests or invitees of the Property Owner;
1.1.14.“EPRA” means the Energy and Petroleum Regulatory Authority;
1.1.15.“Force Majeure Event” means any event, condition or circumstance beyond the control of and not caused by a Party’s own fault or negligence and shall include without limitation an unplanned failure, disconnection or interruption of connectivity to the Provider’s equipment, an act of god; war (declared or undeclared); sabotage; riot; insurrection; civil unrest or disturbance; economic sanction or embargo; civil strike, work stoppage, slow-down, or lock-out; explosion; fire; earthquake; abnormal weather condition or actions of the elements; hurricane; flood; lightning; the binding order of any governmental authority (provided that such order has been resisted in good faith by all reasonable legal means); the failure to act on the part of any governmental authority (provided that such action has been timely requested and diligently pursued); unavailability of power from the national grid, equipment, supplies or products (but not to the extent that any such availability of any of the foregoing results from a Party’s failure to have exercised reasonable diligence); and failure of equipment not utilized by or under the control of a Party to these terms and conditions.
1.1.16.“Meter” means any and every kind of machine, device or instrument used for the measurement of the quantity of energy, and includes such auxiliary appliances necessary for the proper functioning and operation of the meter;
1.1.17.“Offending Party” means a Party that is in default of the terms of these terms and conditions;
1.1.18.“Party” means the Provider and the Property Owner individually, and the term “Parties” shall refer to both of them;
1.1.19.“Permitted Use” means use of the Provider’s equipment at the Property by the Property Owner and/or its End Users strictly in accordance with these terms and conditions and applicable laws, regulations and lawful directives of the EPRA and any other concerned government authorities;
1.1.20.“Property” means all that parcel of land whose particulars are set out at page 1 of these terms and conditions;
1.1.21.“Property Owner” means any person or entity who, for the time being, is entitled to legal or beneficial ownership of a parcel of land at Tatu City;
1.1.22.“Subcontractor” means such person or entity appointed by the Provider to undertake inspection, installation, testing, commissioning, repair or maintenance on the Provider’s behalf;
1.1.23.“Service Area” means the geographical territory within the Republic of Kenya in which the Provider is from time to time licensed by EPRA to conduct its business;
1.1.24.“Provider” means Tatu City Power Company Limited a limited liability company incorporated in the Republic of Kenya having its principal place of business at Tatu Connect Offices, Ruiru-Kiambu Road, Ruiru and of P. O. Box 2739 – 00621 Nairobi, Kenya;
1.1.25.“Term” means one (1) year from the Effective Date (the “Initial Term”), which Term shall renew automatically for further consecutive terms of one (1) year each (each a “Renewal Term”) (unless earlier terminated as hereinafter provided).
1.2. Interpretation

1.2.1.Unless otherwise expressly indicated or the context otherwise requires, in these terms and conditions (including the recitals and the Appendix hereto):

  • appendices hereto shall be read as part and parcel of these terms and conditions;
  • any reference to any statute or statutory provision shall, save as otherwise expressed in these terms and conditions, be construed as a reference to that statute or provision as it is amended consolidated extended or re-enacted from time to time and any orders regulations instruments or other subsidiary legislation made from time to time under any statute provided that any such amendment consolidation extension or re-enactment does not have retrospective effect;
  • reference to a party shall, where the context so admits, include its successors in title or representatives and assigns;
  • the word “tax” shall be construed to include any tax, levy, imposed assessment, duty or other charge of a similar nature (including, without limitation, value added tax, stamp duty, excise duty, income tax, withholding tax, stamp duties, tariffs, fiscal charges and other dues or any similar tax-related charges or levies of whatsoever nature imposed, levied or assessed by any governmental authority in accordance with present or future laws and/or regulations in the Republic of Kenya and any penalty or interest payable in connection with any failure to pay or any delay in paying any of the same) and “taxation” shall be construed accordingly;
  • references to “writing” or “written” includes electronic mail;
1.2.2.Clause headings are for convenience only and shall not affect the construction of these terms and conditions.

1.2.3.The following policies, procedures and guidelines shall be read as part and parcel of these terms and conditions; for the avoidance of doubt, such policies, procedures and guidelines (as modified from time to time) shall be legally binding and enforceable with effect from the date of signing of these terms and conditions or the date of promulgation of such policies, procedures and guidelines (whichever is later):

  • Electricity Guidelines;
  • EPRA Tariff Policy;
  • Complaint Handling Procedure;
  • Such other policies, procedures and guidelines as may be promulgated by the provider pursuant to Clause 17.7 hereof.

1.2.4.In the event of any conflict between these terms and conditions and any ancillary documents, the applicable provisions shall be interpreted in the following order of priority:

  • Constitution of Kenya;
  • Applicable statutes and subsidiary legislation;
  • Lawful directives of the EPRA, the County Government of Kiambu and any concerned government authority;
  • The Kenya Electricity Grid Code;
  • The Declaration;
  • The policies, procedures and guidelines referred to in Clause 1.2.3 of these terms and conditions;
  • These present terms and conditions;
  • Any notices, lawful directives and correspondence issued by or on behalf of the provider in connection with supply of energy by the provider to the Property Owner.

2. BACKGROUND
2.1.The Provider shall undertake implementation of these terms and conditions either by itself or through a Subcontractor appointed by the provider at its sole discretion. Further, the Provider may vary such appointment (including the selection of the Subcontractor, tenure and terms of engagement) at any time by issuance of seven (7) days’ prior written notice to the Property Owner.
2.2.The Provider shall be responsible for ensuring that the Subcontractor complies with these terms and conditions in all respects.
2.3.The Provider shall coordinate installation, testing, commissioning, operation, repair, maintenance, replacement and removal of the Provider’s equipment by the Subcontractor, subject to issuance of prior written notice and scheduling with the Property Owner (except in the event of an emergency in which case no notice shall be required).

3. THE PROVIDER’S EQUIPMENT
3.1.The Provider’s equipment shall be installed in accordance with the technical architecture diagram furnished by The Provider to the Property Owner (as modified from time to time by issuance of written notice by the Provider to the Property Owner).
3.2.The Provider shall arrange for installation, maintenance and repair of the Provider’s equipment by the Subcontractor at no cost to the Property Owner.

3.3.These terms and conditions do not constitute a contract to sell the Provider’s equipment to the Property Owner or any End User. The Provider’s equipment and conduits for conveying electric power (including supply lines, meters, fittings, works and apparatus installed by or on behalf of the Provider up to the Property Owner’s metering panel) shall at all times remain the property of the Provider and accordingly:

  • The Provider may repair, remove or replace any such equipment at any time;
  • The Property Owner shall not have any proprietary interest in such equipment and shall not create, or cause or permit to be created, any right, title, interest or lien over the Provider’s equipment in favor of a third party;
  • Such equipment shall not be subject to distress for rent due from the Property Owner or any End User or occupier of the Property, nor liable to be taken in execution under any insolvency or liquidation proceedings.
3.4.The Provider shall be responsible for arranging for repair, maintenance or replacement of all or part of the Provider’s equipment as and when necessary in accordance with the terms agreed with the Subcontractor. Scheduled maintenance will be undertaken upon issuance of at least 48 hours’ prior written notice by the Provider (either by itself or through the Subcontractor) to the Property Owner, except in the event of an emergency in which case no notice shall be required.
3.5.The Provider shall ensure that the Provider’s equipment shall be reasonably fit for the intended purpose and of merchantable quality. If certain equipment proposed for installation by the Provider is unavailable, the Provider reserves the right to substitute the same with other equipment of a comparable description and functionality. Save as expressly provided in this clause or otherwise required by law, the Provider makes no further representations, warranties, assurances or guarantees to the Property Owner or any third party regarding the output, performance, functionality, features or specifications of the Provider’s equipment.
3.6.The Provider shall ensure that the Subcontractor and its employees, agents and contractors will possess the requisite professional knowledge, skills and experience necessary to enable them to competently carry out their duties under these terms and conditions.

3.7.The Property Owner agrees and acknowledges that:

  • The Provider’s equipment is not fault free. Energy output may be affected by factors outside the control of the Provider or the Subcontractor such as tampering, obstruction and malfunctions.
  • The Provider’s equipment may from time to time require upgrading, modification, maintenance or other works that may result in storage or delivery of energy being restricted;

3.8.The Property Owner shall:

  • Not use, nor permit the use of, the Provider’s equipment for any criminal or immoral purpose;
  • Not do anything, permit or allow to exist any condition or circumstance that would damage or cause the Provider’s equipment not to operate as intended, or otherwise tamper with or interfere with the operation of the Provider’s equipment;
  • Promptly inform the Provider in writing if any fault, malfunction or damage in the Provider’s equipment or its operation is observed, or if any part of the Provider’s equipment is stolen, or if there is a risk of occurrence of such fault, malfunction, damage or theft.
3.9.In the event that the Property Owner (or any occupier or their employees, agents or sub-contractors) causes any damage to any part of the Provider’s equipment, the Property Owner warrants and undertakes that it shall reimburse any and all expenses incurred by the Provider and the Property Owner in respect of repairing and reinstating the Provider’s equipment provided that expenses shall be reimbursed at cost and upon submission of supporting documents to the Property Owner and provided also that where such damage is directly attributable to the Provider or any of its employees agents or subcontractors, the Property Owner shall not be under an obligation to undertake nor bear the cost of repairs.

4. PROPERTY OWNER’S EQUIPMENT AND PROPERTY
4.1.The Property Owner shall ensure that its equipment is ready for interfacing with the Provider’s equipment and that such equipment conforms to the industry standards and the Subcontractor’s reasonable interconnection requirements, is fit for the intended purpose and will not adversely affect the Provider’s equipment nor any associated amenities.
4.2.The Property Owner shall at all times be fully responsible for scope (including security and performance) of its equipment and all associated risks from the Connection Point. Neither the Provider nor the Subcontractor shall at any time be responsible for the safety, security and / or proper functioning of the Property Owner’s interconnection equipment nor any other equipment installed by or on behalf of the Property Owner or its End Users.
4.3.The Property Owner shall make suitable arrangements for grant of access by the Property Owner and concerned End Users to the Provider, the Subcontractor and their respective employees or agents (subject to reasonable security restrictions) for purposes of inspection of the Property, installation, testing, inspection, repairs, maintenance, meter reading and undertaking such other works as may be required to facilitate implementation of these terms and conditions before and after the Commercial Operation Date. The Parties will endeavor to coordinate activities at mutually convenient dates and times. The Provider shall not be responsible for any power outage or harm or loss suffered or incurred by the Property Owner, End Users or any third party if such access is not granted on a timely manner.
4.4.In the event that the Provider or the Subcontractor (or any of its employees, agents or sub-contractors) causes any damage to the Property while undertaking any works on the Property, the Provider shall ensure that such damage is repaired expeditiously, at the cost of the Provider or the Subcontractor (as appropriate), and to the reasonable satisfaction of the Property Owner unless such damage is directly attributable to the Property Owner in which case neither the Provider nor the Subcontractor shall be under any obligation to undertake nor bear the cost of repairs.
4.5.If repairs that ought to be undertaken by the Provider or the Subcontractor are not completed within a reasonable time, the Property Owner may, upon issuance of seven (7) days’ prior written notice to the Provider and the Subcontractor, proceed to undertake the necessary repairs and claim reimbursement of the expenses incurred in respect of such repairs and reinstatement provided that expenses shall be reimbursed at cost and upon submission of supporting documents to the Provider and the Subcontractor. Upon receipt of such notice, the Provider may elect to undertake repairs at its own cost, and by itself or through an agent or subcontractor, then seek reimbursement of the costs from the Subcontractor.
4.6.The Property Owner shall not make any modifications, improvements, revisions or additions to the Property or equipment that are likely to impede or interfere with the proper functioning of the Provider’s equipment.
4.7.The Property Owner shall issue to the Provider at least thirty (30) days’ prior written notice of any intended renovations on the Property to enable the Provider and the Subcontractor to evaluate whether such renovations could potentially have an adverse effect on the Provider’s equipment. If it is established that removal or alteration of the Provider’s equipment or technical architecture is required, the Provider (by itself or through the Subcontractor) shall notify the Property Owner of such removal or alteration and shall thereafter be entitled to vary the technical architecture diagram taking into consideration the effect of the proposed renovations on the Property.


5. INSTALLATION, TESTING AND COMMISSIONING
5.1.The Provider, by itself or through the Subcontractor, shall undertake civil works required for purposes of installation of the Provider’s equipment up to the designated Connection Point.
5.2.The Provider and the Property Owner will exchange such information, and provide such assistance, as may be reasonably required to ensure efficient installation and testing to the reasonable satisfaction of both Parties, and smooth operations in use of the Provider’s equipment.

5.3.The Provider may at any time reject an application for connection, or discontinue installation and testing of electrical equipment, or refuse to commence supply of electricity to the Property – regardless of whether these terms and conditions have been signed by or on behalf of the Provider – if:

  • Property Owner fails to abide by application process prescribed;
  • Any information furnished is false or misleading;
  • Property Owner fails to make good any undisputed payment;
  • Failure to install solar water heating system if required under Energy (Solar Water Heating) Regulations, 2012;
  • Failure to demonstrate compliance with energy conservation building codes;
  • Failure to rectify defects notified by Provider;
  • Building permit or certificate of occupation obtained irregularly;
  • Property subject to demolition order by Kiambu County;
  • Supply prohibited by law or court order.
5.4.Upon successful installation of the Provider’s equipment, the Parties will jointly undertake testing and, upon successful completion of tests to the reasonable satisfaction of each Party, sign an acceptance certificate.
5.5.Delivery of energy will officially commence upon signing the Acceptance Certificate, though it is acknowledged by the Parties that test energy may be delivered during testing.

6. DELIVERY AND USE OF ENERGY
6.1.Energy delivered to the Property Owner and End Users shall be used solely for the Permitted Use.
6.2.The Property Owner shall exercise reasonable measures to ensure sensible use of energy, and compliance with best practice in conservation of energy.
6.3.Any and all tax credits, incentives, renewable energy credits, green tags, carbon offset credits, utility rebates or any other non-power attributes of the Provider’s equipment are the property of and for the benefit of the Subcontractor. The Provider and the Property Owner agree to refrain from entering into any agreement that would entitle them to claim any such benefits.

7. COMPLIANCE
7.1-7.4Property Owner shall ensure compliance with all applicable laws, EPRA directives, these terms, manufacturer specs, insurance conditions. Provider may request documents, and after notice may report violations to authorities.
8. INSURANCE
8.1Property Owner shall insure Property against fire, lightning etc. Provider shall ensure employer’s liability and third party insurance.
9. INDEMNITY AND LIMITATION OF LIABILITY
9.1-9.5Mutual indemnity; no indirect/consequential loss; Provider’s aggregate liability limited to KES 50,000 per incident / KES 200,000 per calendar year, except for breach of compliance/IP/confidentiality or personal injury/death.
10. FORCE MAJEURE
10.1Neither party liable for delay/failure due to Force Majeure Event.
11. CONFIDENTIALITY
11.1-11.2Parties to hold Confidential Information; restrictions on disclosure, with standard exceptions.
12. INTELLECTUAL PROPERTY
12.1-12.2Each Party retains IP in its materials; grants limited license for evaluation/implementation.
13. DISCONNECTION / SUSPENSION
13.1-13.3Provider may suspend supply for grounds under Energy Act (48h notice) or other breach (14 days’ remedy notice). Reconnection subject to remedy and reconnection fee. Rights without prejudice to other remedies.
14. DURATION; TERMINATION
14.1-14.5Initial Term 1 year, auto-renewal. Voluntary termination: 90 days’ notice. Termination for breach: 14 days cure then 7 days’ notice. Upon termination: settlement of accounts, decommissioning of Provider’s equipment.
15. GOVERNING LAW AND DISPUTE RESOLUTION
15.1-15.2Governed by laws of Kenya; unresolved disputes resolved via Provider’s Complaint Handling Procedure.
16. ETHICS AND CODE OF CONDUCT
16.1Parties to act ethically, prevent bribery/corruption, and assist in investigations.
17. GENERAL PROVISIONS
17.1-17.8Notices, independent contractors, assignment restrictions, entire agreement, waiver, severability, variations (minor by notice; material with EPRA approval, etc.), counterparts.

APPENDIX 1: TARIFF, BILLING AND PAYMENT TERMS
General: The Guidelines and Tariff Policy published by the Provider from time to time shall apply, subject to EPRA approval.
Deposit: The Property Owner shall pay a deposit as notified by the Provider to secure performance. Provider may require increase of deposit based on estimated/actual consumption. Bank guarantee or insurance bond may be accepted in lieu. Deposit may be applied toward undisputed amounts due.
Billing and Payments: Estimates shall not exceed actual by more than 10%; deficits payable, surplus credited. Invoiced amounts due within 7 days. Disputes to be notified within 7 days, otherwise invoice deemed accepted. Late payment charge: 10% per annum. Default may be reported to credit reference bureau after 90 days overdue.

IN WITNESS WHEREOF the parties have duly executed these terms and conditions the day and year first hereinbefore written.