THE NINE MANDATORY TESTS

A.  Capital expenditure by the licensed company 5% higher than base case in the first 10 years

B.  Capital expenditure by the licensed company 10% higher than base case in the first 10 years

C.  Wage inflation at 6.5% per annum for the first 10 years, compared with 5% in the base case

D.  Tests A and C combined

E.  Only 80% of planned redundancies achieved in the first charge control period

F.  Low traffic growth-chargeable service units grow at 3.5% per annum for the first 10 years, compared with just over 4.5% in the base case

G. Only 50% of planned efficiency gains in non-staff operating costs achieved in the first charge control period

H. New Scottish Centre 30% over budget and two years late

I. Other factors leading to poorer results than envisaged in the base case (three variants)