4.  Updating the Financial Model

Following the adjustment to calculate the new prices following a Qualifying Variation the Financial Model as adjusted in accordance with paragraphs 2 [or 5] of this Section 3 of Part 22 of the Schedule shall be the Financial Model for the purposes of this Agreement.182




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182  This paragraph provides that the only basis on which the original Financial Model shall be updated or amended is following a Qualifying Variation.  This is not the only update that could be factored in the Financial Model and other circumstances for updating the model could, depending on project specifics, include:

  prepayment or refinancing of debt

  changes to financial assumptions (such as inflation and rates of interest)

  changes to estimated or actual third party revenue.

The basis for updating the Financial Model should be considered on a project specific basis with the Board's financial advisers.