English to French Tech/Engineering Energy / Power Generation deemed energy - Hydro Power Plant

Unfortunately the Take and Pay Power Purchase Agreement (PPA) with Electricity Company XXX did not help the business prospects of the company as it only guaranteed payments for metered energy which at the commencement of operations was only about 30% of output. The remaining 70% was regarded as ***'Deemed Energy"*** and subject of lengthy reconciliation before payment.

The ***Deemed energy*** component of output is estimated at about 55% as at date and its settlement takes considerable time for reconciliation, thereby holding back a good portion of company's revenue flows and by extension affects project profitability.


It eventually gave rise to a situation where more revenues became dependable upon ***'deemed energy'*** which were uncertain as to time of payment.

These translated to inability to wheel energy away from xxx Hydro Power Plant to satisfactory levels and very low local demand. These in effect meant that even when energy was generated, only small quantities could be wheeled away, hence the ***"deemed" energy*** syndrome.


In the event that generated energy cannot be wheeled away, there needs to be a Plan B for 'island mode' operation. In this case, it would be desirable to have a local demand able to consume a reasonable proportion of the energy that would otherwise be considered 'deemed'.

We expect this downward trend to subsist in 2018 until something is done to bring in revenues from **deemed energy** as is the case with metered energy. Cost of sales remain a burden on gross profit.


The remainder or **Deemed energy** bills must go through an approval process.