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With the outbreak of Covid-19, disputes based on force majeure clauses have increased and this important French ruling has implications for future cases.
August 31, 2020 at 09:09 AM
1 minute read
It is in the context of a debate between the key French electricity suppliers on the disputed Regulated Access to Historic Nuclear Electricity (i.e. a scheme that entitles suppliers to purchase electricity from Electricité de France (“EDF”) at a regulated price, in volumes determined by the French energy regulator) that the first court decision recognising the Covid-19 pandemic as a force majeure event was rendered.
In substance, the dispute related to the implementation of the force majeure clause contained in the Framework Agreement concluded between Total Direct Energie (“TDE”) and EDF for the purpose of suspending their respective obligations under the said agreement as a result of a “significant decrease in consumption“.
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