Unit Utility Service Cost Adjustment

9.17  Each Contract Year, a unit Utility Cost Adjustment will be made to reflect the difference between the actual unit cost of the Utility paid by the Contractor over the preceding Contract Year (by reference to Utility invoices) and the estimated unit cost of the Utility at the start of that Contract Year. This adjustment will be calculated as follows:

 

Where:

 

 

USA

=

the annual unit Utility Cost Adjustment;

USCeu

=

the estimated unit Utility Cost (u) including any fixed costs/charges at the start of the Contract Year;

USCau

=

the actual unit Utility Cost (u) over the Contract Year;

CTu

=

the annual utility Consumption Target for the Utility (u) for that Contract Year (or agreed target for a part Contract Year);