14.3 Full Indexation
Where a single index is used
The Full Indexation Factor for the Contract Year y represents the increase or decrease in RPIX over the period since the Base Date and shall be calculated as follows:
where:
| I2 | The Full Indexation Factor for the relevant Contract Year |
| RPIy-1 | The value published for RPIX22 for the [February] immediately preceding Contract Year y |
| RPIbase | The value published for RPIX at [ date ] which shall be the cost base date of the revenues in the Base Date |
The Full Indexation Factor should be applied from the relevant Indexation Date.
Where more than one index is used [Alternative drafting]
Where more than one index is to be used the Full Indexation factor is calculated based on a weighted average for the Contract Year y to represents the increase or decrease in the basket of indices since the Base Date and shall be calculated as follows:
where:
| I2 | The Full Indexation Factor for the relevant Contract Year |
| BI1y-1 | The value published for [Index 1] for the [February] immediately preceding Contract Year y |
| BI1base | The value published for [Index 1 at [date] which shall be the cost base date of the revenues in the Base Date |
| P1 | The proportion of costs subject to Index 1, which shall be [ ] % |
| BI2y-1 | The value published for [Index 2] for the [February] immediately preceding Contract Year y |
| BI2base | The value published for [Index 2] at [date] which shall be Base Date |
| P2 | The proportion of costs subject to Index 2, which shall be [ ] % |
| BI3y-1 | The value published for [Index 3] for the [February] immediately preceding Contract Year y |
| BI3base | The value published for [Index 3] at [date] which shall be the Base Date |
| P3 | The proportion of costs subject to Index 3, which shall be [ ] % |
The Full Indexation Factor should be applied from the relevant Indexation Date.
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22 This may be any other index which the Authority agrees to be a suitable index.