Changes to the Index

The following explains what should happen if the Office of National Statistics withdraws RPIX as an index or if it materially changes the way it is calculated. It also deals with errors in the published indices in terms of recalculating the amount and making ad-hoc adjustments through the payment mechanism.

♦  Changes to the Index

If there is a material change in the nature or basis of any index required for this Part II, or if any index is discontinued, the Parties shall agree upon an alternative index which as closely replicates RPI(X) as is possible. Any consequential changes shall be made to the indexation calculations provided for in this Part II as are necessary to ensure that all payments [to be made pursuant to this Agreement] shall be the same as if such change had not occurred.  Any dispute regarding changes in the index or changes to the calculations may be referred by either party to the Dispute Resolution Procedure.

If there is any error or mistake in the published figures for RPI(X) or in the subsequently agreed index, ("Incorrect Figures") which have been used at any time in any calculation in this Schedule 6 or any amount required to be indexed in accordance with this Agreement which is subsequently duly acknowledged and corrected ("Correct Figures") by the Office of National Statistics, Consumer Prices and General Inflation Division then the Authority and the Contractor agree that any calculations on which the Incorrect Figures were based for the adjustments of any part or parts or the Unitary Charge shall be recalculated based upon the Correct Figures.  Any overpayment or underpayment by either party to the other which has occurred as a result of the Incorrect Figures shall be paid or repaid by the party to the other within thirty (30) Business Days of the recalculation being agreed or determined. Any dispute in relation to this clause may be referred at the request by either party to the Dispute Resolution Procedure.