Aims and Objectives

The objectives of the payment mechanism are to:

•  Set out how the Service Provider can achieve the maximum possible Monthly Unitary Charge over the life of the Contract by achieving the performance standards set out in the Output Specification

•  Define the Unitary Charge, Monthly Unitary Charge and electricity payment

•  Provide incentives for the Service Provider to meet the performance standards by placing the Unitary Charge at risk for failure to meet those standards

•  Provide incentives for the Service Provider to correct any failures as rapidly as possible and to avoid repeated failures by the use of rectification periods and escalation of deductions

•  Match payments to outputs by increasing the Monthly Unitary Charge to reflect the introduction of new street lighting Apparatus to the Authority network and the corresponding Relevant Standards

•  Set out clearly the contractual obligations of the Authority and the Service Provider as far as the Unitary Charge and payment deductions are concerned

•  Provide an incentive for the Service Provider to innovate and secure efficiency gains over the life of the Contract

•  Set out how variations to the service are to be paid for in respect of Accruals/De-Accruals

•  Assist the Authority to meet its strategic objectives, Best Value and reporting obligations