1. MONTHLY SERVICE PAYMENT
1.1 The Monthly Service Payment payable in respect of any Contract Month shall be calculated in accordance with the following formula:91
where:
1.1.1 MSP is the Monthly Service Payment for the Contract Month for which the formula is to be applied;
1.1.2 ASPn is the Annual Service Payment for the relevant Contract Year, subject to paragraph 1.2 below;
1.1.3 [PP is the Phase Percentage for the relevant Contract Month;]92
1.1.4 TVA is the Total Volume Adjustment in respect of the most recent Contract Month for which a Performance Monitoring Report has been delivered to the Board calculated in accordance with paragraph 1.1 (Volume Adjustment) of Section F of this Part 18 of the Schedule (Payment Mechanism);
1.1.5 ΣD is the sum of Deductions in respect of the most recent Contract Month for which a Performance Monitoring Report has been delivered to the Board in relation to Performance Failures and Unavailability Events calculated in accordance with the provisions set out in Section C of this Part 18 of the Schedule (Payment Mechanism);
1.1.6 PTC means any Pass Through Costs due for which supporting uncontested invoices from Project Co's suppliers are available;
1.1.7 UCA means any Utility Cost Adjustment in respect of the most recent Contract Month for which a Performance Monitoring Report has been delivered to the Board calculated in accordance with paragraph 7 (Utility Cost Adjustment) of Section F of this Part 18 of the Schedule (Payment Mechanism);
1.1.8 GS means any Gainshare Adjustment arising pursuant to paragraph 4.7 (Comparing Actual Consumption of Energy with Target) of Section F of this Part 18 of the Schedule (Payment Mechanism), which is to be applied in the Monthly Service Payment Statement following its calculation in accordance with paragraph 4.7 (Comparing Actual Consumption of Energy with Target) of Section F of this Part 18 of the Schedule (Payment Mechanism);
1.1.9 PS means any Painshare Adjustment arising pursuant to paragraph 4.9 (Comparing Actual Consumption of Energy with Target) of Section F of this Part 18 of the Schedule (Payment Mechanism), which is to be applied in the Monthly Service Payment Statement following its calculation in accordance with paragraph 4.9 (Comparing Actual Consumption of Energy with Target) of Section F of this Part 18 of the Schedule (Payment Mechanism);
1.1.10 [ESA means any Emissions Saving Adjustment arising pursuant to paragraph 6.2 (Emissions Savings and Excess Emissions) of Section H of this Part 18 of the Schedule (Payment Mechanism), which is to be applied in the Monthly Service Payment Statement following its calculation in accordance with paragraph 6.2 (Emissions Savings and Excess Emissions) of Section H of this Part 18 of the Schedule (Payment Mechanism);]93
1.1.11 [EEA means any Excess Emissions Adjustment arising pursuant to paragraph 6.3 (Emissions Savings and Excess Emissions) of Section H of this Part 18 of the Schedule (Payment Mechanism), which is to be applied in the Monthly Service Payment Statement following its calculation in accordance with paragraph 6.3 (Emissions Savings and Excess Emissions) of Section H of this Part 18 of the Schedule (Payment Mechanism);]94
1.1.12 [IE means the amount attributable to any increase in Energy Consumption arising pursuant to paragraph 3.7 of Section F of this Part 18 of the Schedule (Payment Mechanism) in the Energy Year ending on the Annual Review Date, which is to be applied in the Monthly Service Payment Statement following its calculation in accordance with paragraph 3.6.2 of Section F of this Part 18 of the Schedule (Payment Mechanism);]95
1.1.13 [IEB means the amount calculated pursuant to paragraph 5.1 of Section H of this Part 18 of the Schedule (Payment Mechanism), which is to be applied in the Monthly Service Payment Statement following its calculation in accordance with paragraph 5.1 of Section H of this Part 18 of the Schedule (Payment Mechanism);]96 and
1.1.14 WLA means any Water Leakage Adjustment as defined in and arising pursuant to paragraph 9 of Section F of this Part 18 of the Schedule, which is to be applied annually in the Monthly Service Payment Statement following its calculation.
1.2 [In the Contract Month in which the Payment Commencement Date falls and]97 in the last Contract Month of the Project Term a pro rata adjustment shall be made to ASPn for the purposes of paragraph 1.1 above to reflect the actual number of days in the relevant Contract Month [from and including the Payment Commencement Date (for the first month)]98 and (for the last month) up to and including the last day of the Project Term (for the last month).
1.3 [Ad-Hoc Payments shall be payable in addition to the Monthly Service Payment in accordance with Clause 35.2 (Payment).]99
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91 Some elements of the formula may not be required - see comments on definitions below.
92 Phase Percentage only required if there is phasing
93 ESA only required where Greenhouse Gas Emissions section (Section H) is applicable
94 ESA only required where Greenhouse Gas Emissions section (Section H) is applicable
95 IE is related to Joint Operating Protocol for energy. See comment on definition of Joint Operating Protocol in Section A
96 IEB only required where Greenhouse Gas Emissions section (Section H) is applicable
97 Not required if Phasing wording is used as Phase Percentage definition deals with this point
98 As above
99 To be tied in to Part 14 of the Schedule and Clause 35.2 if any Ad-Hoc services may be required that are not included in the annual Service Payment. Clause 35.2 should deal with invoicing requirements and the basis for calculating Ad-Hoc Payments (i.e. on the basis of costs invoiced to Project Co by its suppliers)