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Expert
Witness
IPA Energy + Water Economics has acted as an expert witness extensively on behalf
of clients. Some of these arose following the change of the structure
of the electricity industry in England & Wales, and the corresponding
need to convert existing contracts to ensure that the intent of the contract,
and the balance of risk to all parties, is the same under the New Electricity
Trading Arrangements (NETA) as under the previous Pool system. Our location
and experience in Scotland means that we are all well placed to offer
similar services once the British Electricity Trading and Transmission
Arrangements (BETTA) are rolled out across Scotland in 2005.
Our
extensive international portfolio of work allows us to draw on a wide
array of comparators, benchmarks and industry practice in assembling arguments
and evidence.
Contract Disputes
IPA acts as an expert witness for Clients regarding long-term contracts
where parties are in dispute over topics including differences in the
balance of risk and the associated timetable for trading, or the impact
of changing a financial instrument to a contract for physical delivery.
PPA’s & FPA’s
IPA provides expertise in market analysis and price projections, regulatory
approvals, due diligence, PPAs and FPAs, financing advice. This expertise
is essential in aiding our clients analyse loss and make appropriate provisions
and disclosures in financial reporting.
Litigation
IPA provides expert witness services drawing on our in-depth industry
knowledge, our analytical tools and skills and the extensive practical
experience of our senior staff and directors.
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Current
and Recent Experience as Expert Witness
UK
- Forecast of CCGT Operation & Profitability
IPA was commissioned to forecast the economics of a CCGT under its current
gas and power contracts, to assess whether the project was likely to be
placed into administration. The work went on to assess the clients potential
liability under contractual guarantees, and looked at the cost of different
options for mitigation.
UK
- Expert Witness
Expert advice for contract valuation dispute against a counter-party in
administration.
UK
- PPP Gas Replacement
Expert Witness in relation to Alternative Dispute Resolution proceedings
regarding changes to price indexation for a gas supply agreement as a
result of the adoption of the New Electricity Trading Arrangements. IPA
provided expert opinion on suitable replacement indexation provisions
and associated advice.
UK
- Litigation
IPA acted as an expert witness in a dispute between a major UK generator
and a contractor following a series of failures at a power station. The
main area of concern was the financial loss resulting from the failures
at the affected station and the indirect impact of the failures on the
generator’s other stations, its contract portfolio and its retail
sales.
UK
- Electricity Trading Advice
Following Enron's demise IPA advised a trader on their contractual exposure.
This comprised an independent review of the valuation of the trader's
UK and Continental claim against Enron due to the termination of contracts,
and entailed evaluating the risks associated with large and varied electricity
contracts, not only in the UK under NETA but also in several Western European
electricity markets.
UK
- Expert Witness for Contract Dispute
IPA acted as an expert witness in the case of a UK company against a UK
generator following the inception of NETA. Many of the arguments centred
around the differences in the balance of risk and the original intent
of the contract.
UK
- Expert Witness Contract Dispute
Retained by a major power generator in the UK to act as expert witness
in a disputed power off-take agreement. The dispute arose out of the new
electricity trading arrangements in the UK where the electricity price
marker, the pool price, was to be replaced by a new method for calculating
the wholesale electricity price. IPA modelled several different methodologies
for replacing the pool price and produced detailed arguments for and against
the methods for use in the dispute resolution.
UK
- Expert Witness Testimony
IPA provided advice and expert testimony on a major case in which Herbert
Smith's client was in dispute with its contracted counter-party over a
major electricity contract covering some 3000MW. The dispute was taken
through the Expert Determination process specified in the contract. The
dispute was over the mechanism for exercise of options and allocation
of risk as the contract rolled over from the Pool to the New Electricity
Trading Arrangements (NETA).
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