Cap on Performance Deductions

6.2.  The Authority may not, in respect of any Contract Year, make Aggregate Performance Deductions which are greater than [35%] of the Unitary Charge payable by the Authority in respect of the relevant Contract Year. Deductions which, but for this paragraph, could have been made by the Authority should will be permanently disregarded for the purposes of this Schedule 4.

6.3.  No Performance Deduction may be made in any Measurement Period in relation to any Dwelling if an Unavailability Deduction is made by the Authority in respect of that Dwelling for the same Measurement Period provided that such unrelated Performance Deductions may be made for Sub Standard Performance in any Dwelling:

•  which is Unavailable but Used (but only to the extent that it is practicable to provide the relevant services in the area of Dwelling which is Unavailable but Used);

•  in respect of which Unavailability Deductions made due to Repeated Unavailability may be made but which is not otherwise breaching Availability Standards; or

•  which is occupied by the Tenant or Leaseholder as Suitable Alternative Accommodation in accordance with paragraph 3.26 of this Schedule 4.  Performance Deductions may be made by the Authority in respect of such Suitable Alternative Accommodation by applying this Schedule 4 and Schedule 3.26, mutatis mutandis, to such Alternative Accommodation in respect of all applicable Key Performance Indicators.