5.1  Diversion Performance Deduction

The Diversion Performance Deduction is calculated in accordance with the following formula: 

D8 = ((AULT - TULT) * ULAR) + ((APLT - TPLT) * PLAR)

where:

AULT

Contract Waste Accepted Unprocessed and Contract Waste Not Accepted in the relevant Contract year

TULT

Target Unprocessed Landfill Tonnage calculated in accordance with paragraph 5.2

ULAR

Unprocessed Landfill Adjustment Rate 

APLT

Actual Processed Landfill Tonnage in the relevant Contract Year

TPLT

Target Processed Landfill Tonnage calculated in accordance with paragraph 5.3

PLAR

Processed Landfill Adjustment Rate

Where AULT is less than TULT in the relevant Contract Year, AULT - TULT shall be deemed to be zero and where APLT is less than TPLT in the relevant Contract Year APLT - TPLT shall be deemed to be zero.




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8  The suggested drafting applies the same adjustment rate regardless of whether the Actual Unprocessed Landfill Tonnage less the Target Unprocessed Landfill Tonnage or the Actual Processed Landfill Tonnage less the Target Processed Landfill Tonnage is positive or negative. Authorities may wish to consider having a different rate which is consistent with the actual income realised from trading landfill allowances where the figure is negative (i.e. the Contractor has overperformed).