11.7  Mitigation action that may be taken by the private party

To the extent that a private party has accepted the risk of change in law, the mitigation options available include:

•  attempting to cost the consequences of an adverse change in law into the initial pricing structure through market analysis, scenario modelling and providing for price indexation and benchmarking

•  agreeing with government during the binding bid stage on an appropriate regulatory framework to adjust tariffs in the event of a relevant change in law, thereby passing the costs through to the end-consumer

•  taking reasonable actions to minimise the cost of implementing a foreseeable change in law (e.g. through project design prior to completion)

•  discussion with the relevant legislative/regulatory body to alleviate, where appropriate, the effects of the change in law.