275 ENERGY LAW Limitation of Liability Except for the amounts that become payable upon failure to deliver or accept electricity pursuant to section §8 and termination for material reasons pursuant to section §10.3, the General Agreement provides that the parties shall not be responsible for slight negligence in failing to perform. The GeneralAgreement entirely excludes indirect damages and provides that the total liability, except for the amounts that become payable upon failure to deliver or accept electricity pursuant to section §8, and calculation of the termination amount pursuant to section §11, will be capped with the amounts payable under the relevant Individual Contracts. However, the parties’ liability is not limited for (1) intentional default, (2) fraud, and (3) actions jeopardizing fundamental legal rights or violating fundamental contractual duties of the parties. Governing Law and Arbitration Unless a contrary provision is made in the Election Sheet by the parties, the General Agreement and the Individual Contracts are governed by German law, application of the United Nations Convention on Contracts for the International Sale of Goods is excluded, and the disputes arising in connection with the Agreement will be referred to the German Institution of Arbitration according to its rules for arbitration. Conclusion The General Agreement provides a reliable and user-friendly mechanism for trading electricity. Its provisions cover the main issues which are most likely to cause disputes between the parties. With the increased usage of the General Agreement in the wholesale electricity trading in Turkey, it is possible to observe that it has been standardizing the terms of wholesale electricity trading and, therefore, creating a self-regulation amongst the companies operating in the wholesale electricity trade sector.
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