Operis has studied the Model and determined that it is a manual model. The Unitary Charge is not calculated by it. Rather, it is supplied as an input by the bidding consortium, which sets it in order to achieve the required returns for equity and comfort margins for debt. This is confirmed by the Data Book:
"The Unitary Payment is determined by means of a process of manual iteration, to minimise the Unitary Payment, subject to achieving the required banking ratios and the required equity return." And later, "This process of manual iteration entails adjusting the following variables: ■ the debt and equity funding required, in accordance with the proposed gearing ratios and coverage ratios; ■ the sculpted repayment profile of the Senior Debt, to ensure that minimum proposed annual coverage ratios are achieved; ■ the "Availability" element of the Unitary Payment to ensure that the minimum required equity return and proposed coverage ratios are achieved." |