4.  REVISIONS TO THE BASE CASE

4.1.  Where the Parties agree that the financial consequences of any Relevant Event or the payment of or release from any sum are best dealt with without a revision to the Base Case, they shall agree to make such revision to the Monthly Payment as necessary on a one-off or recurrent basis.  Such change shall, on the next occasion that there is a revision to the Base Case in accordance with this Schedule 19 be consolidated as an update to the Unitary Charge and Base Case.

4.2.  Prior to making any changes to the Base Case (subject to any express provision of this Contract to the contrary), the Parties shall agree the Base Case Change Date for the change and the basis of the revision to the Base Case.

4.3.  Except for revisions due to:

4.3.1.  a Qualifying Refinancing (in which case the provisions of Schedule 16 (Refinancing) shall apply);

4.3.2.  a Contractor Change which results in costs savings (and such costs saving are shared in accordance with paragraph 4 of Part 5 (Contractor Change) of Schedule 21 (Change Protocol),

the Unitary Charge shall be revised so as to ensure that the Contractor is in no better and no worse position (as defined by paragraph 5.3) than it was prior to the Base Case Change Date and the event which gave rise to the need for the revision.  In no circumstances shall any revision provide compensation to the Contractor for any deviation in performance from that predicted in the latest Base Case as agreed between the Parties or determined in accordance with the Dispute Resolution Procedure.

4.4.  In calculating the Estimated Change in Project Costs and in assessing other adjustments to be made to the Base Case arising from a Relevant Event, the Contractor shall be entitled to take into account, inter alia:

4.4.1.  any Change in Costs and Change in Revenue without double counting any financing costs relating to the additional capital expenditure123;

4.4.2.  reasonable economic assumptions prevailing at the time; and

4.4.3.  changes in the prospective technical performance of the Project arising as a result of the Relevant Event, provided that the Authority shall not be required (and the Contractor shall not be entitled) to take into account the financial impact up to the date of the Relevant Event of those risks which the Contractor bears under the terms of this Contract, including (to the extent so borne by the Contractor under this Contract) changes in VAT rates, taxation rates, RPIX and the impact of adjustments and/or deductions in accordance with Schedule 4 (Payment Mechanism).

4.5.  The Contractor shall take all reasonable and appropriate steps to mitigate the effects of any revision including, in particular but without limitation, mitigating any adverse impact upon the Authority.

4.6.  If the Base Case is to be revised, then the Contractor shall make appropriate electronic amendments to it to effect such revisions made in accordance with this Schedule 19.

4.7.  Where a revision to the Unitary Charge is required, the Contractor shall, at its own cost, save as otherwise expressly provided, revise the Base Case and submit to the Authority a revised Base Case reflecting such adjustments.

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123  There should be no double counting on financing costs relating to the additional capital expenditure. For example, if the Contractor's own capital is employed and loss of interest is reflected in Change in Costs, it is not appropriate to additionally compensate for Equity IRR