Common use of Third Party Transactions Clause in Contracts

Third Party Transactions. The Authority may instruct the Supplier to endeavour to fix or unfix a price for Contract Blocks which is no less advantageous to the Authority than that available under a Third Party GTMA Transaction (“Third Party Instruction”). In providing a Third Party Instruction the Authority shall specify: whether the Authority wishes to fix or unfix a price; the Contract Blocks to be subject to the Third Party Instruction by reference to their status as Baseload Blocks or Peakload Blocks, and the relevant time period; the total volume (in MW) subject to the Third Party Instruction; and the price at which the Authority believes the proposed counterparty is willing (in the case of fixes) to sell the relevant volume to the Supplier, or (in the case of unfixes) buy the relevant volume from the Supplier under a Third Party GTMA Transaction. Immediately after receiving a Third Party Instruction the Supplier will (whilst remaining telephonically connected) notify the Authority whether it will match or better the price set out in the Third Party Instruction. In this case prices of the relevant Contract Blocks shall be fixed or unfixed on the basis of the Third Party Instruction. Where the Supplier does not opt to match or better the price set out in the Third Party Instruction, the Authority shall confirm to the Supplier the counterparty proposed by the Authority, and the Supplier shall: confirm to the Authority whether or not the proposed counterparty is an Authorised Trading Counterparty; and if the proposed counterparty is an Authorised Trading Counterparty: contact such Authorised Trading Counterparty and offer to enter into a Third Party GTMA Transaction with that Authorised Trading Counterparty for the volumes and at the prices referred to in the Third Party Instruction; and take all reasonable steps necessary to conclude such Third Party GTMA Transaction. Where the Supplier concludes such a Third Party GTMA Transaction (including any such transaction concluded pursuant to Paragraph 10.5), it shall immediately notify the Authority and the prices of the relevant Contract Blocks shall be fixed or unfixed on the basis of the Third Party GTMA Transaction (and, for the avoidance of doubt, at a price no less favourable to the Authority than that set out in the Third Party Instruction). Where prices are fixed or unfixed pursuant to Paragraph 6.18 or 6.20 this shall be a (“Third Party Transaction”) and the Supplier shall provide the Authority with an Initial Confirmation pursuant to Paragraph 7.3. Where the Supplier is unable to conclude such a Third Party GTMA Transaction within one (1) Working Day of receipt of the Third Party Instruction the Supplier shall notify the Authority (which the Authority may verify with the proposed counterparty), and the Supplier shall, without prejudice to the Authority’s rights to submit future instructions, cease to seek to conclude such that Third Party GTMA Transaction.