Adjustment Formula

7.1  Where there has been at least one (1) Reporting Failure in any Month which is not corrected by the Service Provider prior to the payment of the Monthly Payment in respect of that Month; and then there shall be a one off Adjustment of £50 (Indexed).

7.2  Each occurrence of a Reporting Failure shall be included in the next Draft Monthly Payment Report and the Monthly Payment related to the corresponding Actual Monthly Payment Report shall be reduced by the amount that would have been a valid Adjustment had the Reporting Failure not occurred.  In addition a further Adjustment of a sum equal to fifty per cent (50%) of the valid Adjustment (a Reporting Failure Adjustment) shall be shown in the same Draft Monthly Payment Report (and corresponding Actual Monthly Payment Report) and the relevant Monthly Payment shall be reduced accordingly.

7.3  If there has been a Reporting Failure which has affected the calculation of the Monthly Payment in respect of a Month which is corrected by the Service Provider prior to payment of the Monthly Payment in respect of that Month, no Reporting Failure Adjustment shall be made.

7.4  For the purposes of this PS7, a Reporting Failure shall mean any failure by the Service Provider, which was not as a result of reasons outside of the control of the Service Provider (acting at all times in accordance with Good Industry Practice), to meet the requirements of PS7 Performance Target A (whether or not the Authority was aware of such failure and whether or not calculation of the Monthly Payment or any Adjustment is affected by such failure).