1.  ENTITLEMENT TO MAKE DEDUCTIONS

1.1  If at any time after the [Actual Completion Date] [Phase Actual Completion Date for a Phase]98 an Unavailability Event or a Performance Failure [relating to that Phase] shall occur the Board shall, subject to paragraphs 1.2, 1.3, 2 (Bedding-In Period), 4 (Tolerance for Minor Performance Failures) and 9 (Temporary Repair) below, be entitled to make deductions from the Monthly Service Payment in respect of that Unavailability Event or Performance Failure, calculated in accordance with this Section C of Schedule Part 18 (Payment Mechanism).

1.2  The maximum aggregate of all Deductions that the Board can make from a Monthly Service Payment in respect of any Contract Month shall be the Volume Adjusted Service Payment.

1.3  To the extent that an Unavailability Event or a Performance Failure

1.3.1  is the result of an Excusing Cause (as defined in Clause 8.7 of this Agreement); or

1.3.2  [is the result of an External Utility Failure]99

the Board shall not be entitled to make Deductions or to award Service Failure Points.




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98  Depending on whether Phasing is used

99  See definition of External Utility Failure