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However, in the light of EU law, the legal assessment of purchase or remuneration obligations should verify their compatibility with the rules in both the sectoral regulatory framework and the competition law framework. A take or pay contract is the norm in the energy sector. This is because suppliers will incur high overhead costs to offer energy units such as natural gas or oil. Overhead costs are usually in the form of pipelines, oil or natural gas for electricity generation. In addition to overheads, the volatility of raw material prices also weighs on the supplier. (c) In calculating the seller`s loss and asserting the corresponding claim, the seller has taken into account more favourable terms that the seller itself enjoys or makes available to other buyers. Arrangements made or paid for in a contract should facilitate financially predictable outcomes, particularly in the case of debt. If a supplier needs a loan to finance the production of a buyer`s order, the lender may not be willing to offer the necessary funds without a provision to take or pay in the contract. This provision ensures that the supplier will be able to pay the loan as intended. For this way, paying take-or contracts encourage energy suppliers to invest in the business.

These agreements serve as assurance to suppliers that they will recover the costs. If there is no such contract, the supplier must bear all risks, including the cancellation of an order due to price fluctuations. It follows from the methodology provided for in article 24 that the seller`s right to assert claims against its buyers under private or payment clauses is subject to limitations of mandatory law. These rights may be invoked if the conditions of the applicable conditions of the delivery contract are adapted to the binding nature of the legal conditions. [16] Therefore, the seller is required to rely on it and to demonstrate that after the conclusion of the contracts with its customers, the seller continues to suffer losses related to its contract with the supplier through the take or payment clause. A take or pay contract is an agreement that helps protect the seller if the buyer refuses to buy or take back the items. This is a written agreement between the buyer and the seller….

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