United Kingdom

United Kingdom

NFFO contracts are binding

The statement that NFFO bidders do not get penalised if their bids are too low and they simply withdraw is misleading (Windpower Monthly, March 1997). Once awarded, NFFO contracts are binding. Under certain very specific conditions, the contract could be terminated by virtue of a materially adverse change in the circumstances of the scheme.

In your article on price trends in the UK (March, page 21) and bidders into the NFFO competition, you state that reckless bidders do not get penalised if their bids are too low, they simply withdraw.

This statement is misleading. Once awarded, NFFO contracts are binding. Under certain very specific conditions, the contract could be terminated by virtue of a materially adverse change in the circumstances of the scheme. The change would have to be such that it was outside the control of the generator and was inconsistent with the information on the scheme which was supplied as part of the tender process.

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