NUC

=

the new Unitary Charge following review in accordance with this paragraph 2.6 which shall be calculated in accordance with the following formula:

NUCx + NUCy

Where:

NUCx

=

the new Unitary Charge excluding amounts for Accrued Apparatus and De-Accrued Apparatus included within or removed from the provision of the Service in accordance with paragraph 4 of Part 1 of this Payment Mechanism which shall be calculated in accordance with the following formula:

OUCx x (1 + (X x (RPIXn – RPIXm) / (RPIXm)));

OUCx

=

the Unitary Charge immediately preceding the relevant Indexation Review Date excluding amounts for Accrued Apparatus and De-accrued Apparatus included within or removed from the provision of the Service in accordance with paragraph 4 of Part 1 of this Payment Mechanism;

X

=

[factor to be bid or set by Authority prior to the bid stage but no greater than 1];

RPIXn

=

RPIX as at the end of January of the calendar year in which the Indexation Review Date falls;

RPIXm

=

RPIX as at the end of [month and year two (2) Months prior to the 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;

NUCy

=

an amount for Accrued Apparatus and De-Accrued Apparatus included within or removed from the Service in accordance with paragraph 4 of Part 1 of this 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 and y6

=

the values of y defined in paragraph 4.1 of Part 1 of this Payment Mechanism;

n1, n2, n3, n4, n5 and n6

=

the total number of units of Apparatus (in each category as set out in Table 3 in paragraph 4.1 of Part 1 of this Payment Mechanism) Accrued in accordance with paragraph 4 of Part 1 of this Payment Mechanism between the Service Commencement Date and the relevant Indexation Review Date;

m1, m2, m3, m4, m5 and m6

=

the total number of units of Apparatus (in each category as set out in Table 3 in paragraph 4.1 of Part 1 of this Payment Mechanism) De-Accrued in accordance with paragraph 4 of Part 1 of this Payment Mechanism between the Service Commencement Date and the relevant Indexation Review Date.