2 Calculation of the Monthly Unitary Payment
This section defines how the Monthly Unitary Payment (UPm) is calculated. The Monthly Unitary Payment (UPm) is the Monthly Unitary Charge (UCm) less Unavailability Deductions and Service Performance Deductions. The Monthly Unitary Charge is the Annual Unitary Charge (as stated in the Schedule of Charges) (part of which is indexed to current prices) divided by 12 months.
The following table shows the key components of the Unitary payment and other payments that are made to the Contractor.
Unitary Payment | Other Payments | Adjustments | |||
Annual | Annual Indexation of that part of the Unitary Charge that is indexed | ||||
Monthly | Annual Unitary Charge divided by 12 months Less Unavailability deductions (relating to the previous month) Less Service Performance deductions (relating to the previous month) | Utility Charges (estimated unit charge x estimated usage + estimated standing charge) Pass Through Costs and ad-hoc payments | Part month at beginning or end of Contract – based on proportion of days relative to number of days in month Backdated indexation adjustment Dispute Resolution Procedure adjustments (clause 67) Change mechanism adjustments (clauses 59, 60 and Schedule 3) |