1.8 References to Indexation
References to amounts expressed to be Indexed are references to such amounts multiplied by:
where Index1 is the value of [index/indices selected] most recently published prior to the relevant calculation date and Index2 is the value of the [index or indexes] on the Base Date. [Amounts in Schedule 21 (Payment Mechanism) shall be subject to indexation in accordance with paragraph [2.15] of Schedule 21 (Payment Mechanism) unless the context requires otherwise.]3
__________________________________________________________________________________________________
1 If RPIX is the index used, then this can be defined as the index published in Table RPO5 (RPI all items - excluding Mortgage Interest Payment (RPIX) reference CHMK published by the Office for National Statistics or failing such publication or in the event of a fundamental change to the index, such other index as the parties may agree, or such adjustments to the index as the parties may agree (in each case with the intention of putting the parties in no better nor worse position than they would have been had the index not ceased to be published or the relevant fundamental change not been made) or, in the event that no such agreement is reached, as may be determined in accordance with Section 28 (Dispute Resolution). See Section 15 (Price Variations) as other indices may be relevant. See HMT's Application Note "Interest Rate & Inflation Risks in PFI Contract" May 2006.
2 This is the date by reference to which the prices expressed in this Contract to be indexed are fixed, often the bid date.
3 Payment mechanism to be checked for consistency with this principle.