Annual Review of the Unitary Charge and Energy Payment

The Unitary Charge will be reviewed each year with a view to ensuring that the payments reflect the changes in the value of money and the changing costs of providing the type of services covered by the Contract.  Reviews will take place in the context of the Authority's Best Value responsibilities.

For this purpose the cost of electricity consumed is inflated separately from the rest of the Unitary Charge and is based upon the actual price (pence/KwH) procured by the Authority or Service Provider. The Unitary Charge excluding electricity cost is inflated by a percentage of RPIX.  Bidders should bid a percentage factor by which RPIX is to be multiplied in order to calculate the uplift percentage.1

For bidding purposes, RPIX should be assumed to increase at [2.50%] per annum.

As an example, if the bid factor were 30% and RPIX 2.50% then the Unitary Charge uplift factor would be 0.75% (30%*2.50%=0.75%).

Other sums within the Model Contract, which are expressed as 'Indexed', are re-calculated annually in accordance with the change in RPIX over the preceding year.

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1 Authorities may wish to specify a percentage for RPIX to be multiplied by rather than allowing bidders to propose a figure.