Indexation of the Service Payment
2.15. The Service Payment shall be reviewed on the Reference Date in each Payment Year following the Planned Service Commencement Date (the Indexation Review Date) until the earlier of the Expiry Date or the Termination Date, in accordance with the following formula:
NSP = | the new Service Payment following review in accordance with this paragraph 2.15 which shall be calculated in accordance with the following formula: NSPX + NSPY |
NSPx | the new Service Payment excluding amounts for [Accrued and De-Accrued Road Section Lengths] included within or removed from the provision of the Service in accordance with paragraph 2.16 of Part II of this Schedule 21 (Payment Mechanism) which shall be calculated in accordance with the following formula: OSPx x (1 + (Xx (RPIXn - RPIXm) / (RPIXm))); |
OSPx | the Service Payment immediately preceding the relevant Indexation Review Date excluding amounts for [Accrued Apparatus] and [De-Accrued Road Section Lengths] included within or removed from the provision of the Service in accordance with paragraph 2.16 of Part II of this Schedule 21 (Payment Mechanism); |
X | [Bid Back Value] between 0 and 1 |
RPIX13n | RPIX as at the end of January of the calendar Payment Year in which the Indexation Review Date falls; |
RPIXm | RPIX as at the end of [month and year two (2) Months prior to the price base date] for the review on the 1st April [first year when April is after the price base date] and RPIX as at the end of January of the previous calendar year for all other reviews; |
NSPy | an amount for [Accrued Road Section Lengths and De-Accrued Road Section Lengths] included within or removed from the Service in accordance with paragraph 2.16 of Part II of this Schedule 21 (Payment Mechanism) between the date of the Contract and the relevant Indexation Review Date: (y1 x (n1 ‑ m1)) + (y2 x (n2 ‑ m2)) + (y3 x (n3 ‑ m3)) + (y4 x (n4 ‑ m4)) + (y5 x (n5 - m5)) (y6 x (n6 - m6)) |
y1, y2, y3, y4, y5 ,y6 | the values of "y" defined in Table 3 of Part II of this Schedule 21 (Payment Mechanism); |
n1, n2, n3, n4, n5, n6 | the total number of metres for each category of [Road Section Length] (as set out in Table 3 of Part II of this Schedule 21 (Payment Mechanism)) Accrued in accordance with paragraph 2.16 of Part II of this Schedule 21 (Payment Mechanism) between the Service Commencement Date and the relevant Indexation Review Date; |
m1, m2, m3, m4, m5, m6 | the total number of metres for each category of [Road Section Length] (as set out in Table 3 of Part II of this Schedule 21 (Payment Mechanism) De-Accrued in accordance with paragraph 2.16 of Part II of this Schedule 21 (Payment Mechanism) between the Service Commencement Date and the relevant Indexation Review Date. |
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13 Alternative indexation proposals may be agreed on a project specific basis where these demonstrate value to money for the Authority