Consumption Target

9.6  An annual Consumption Target for the relevant accommodation will be set for each Utility as contained in the Consumption Target Table set out in Part XVII.  The Consumption Targets will be expressed in volume terms.

9.7  These Consumption Targets for each Utility will apply during the Initial Phase for each accommodation and will be derived from the bidder's proposals at Financial Close.

9.8  The Consumption Target for each Utility from the expiry of the Initial Phase will be derived from the lowest of:

•  the average annual recorded consumption of that Utility Service over the previous 3 Utility Periods;

•  consumption based on current relevant benchmarks;

•  any agreed improved operating efficiency targets after account has been taken of any annual adjustments as detailed in paragraph 9.15.

9.9  The Consumption Target for each Utility will be harmonised and re-set on 1 April following the Contract Year in which the Initial Phase expires for the last accommodation to reach its Services Availability Date.  Thereafter, Utility Periods will last 1 year, with the Consumption Targets for those periods agreed or determined at the start of each period.

9.10  Not less than three (3) Payment Periods prior to the end of the current Utility Period, the Contractor shall submit to the Authority its proposed new Consumption Targets for each Utility for the next Utility Period, together with documentation supporting its proposals.  The documentation will include:

i.  logs of consumption in the current Utility Period;

ii.  calculations on which the new targets are based;

iii.  the carbon emission ratings associated with the new targets;

iv.  details of any consumption that may not have been recorded by main utilities meters, e.g. where some energy demand has been met by on site renewable generation or some of the water requirements has been met by recycling.

The proposals may take account of any annual adjustments that may be made as part of the arrangements detailed in paragraph 9.12.

9.11  Not more than one Payment Period following receipt by the Authority of the Contractor's proposals for the new Consumption Targets, the parties will meet to discuss those proposals and agree the Consumption Targets for the next Utility Period.  Any failure to agree the Consumption Targets will be referred to the Dispute Resolution Procedure.

9.12  Adjustments to the Consumption Targets will be made annually on a fair and reasonable basis where the following has occurred:

i.  there has been a material change in respect of the utilisation of the accommodation which has led to an increase or decrease in consumption levels where such can be demonstrated with reference to the "utilisation and/or consumption records from the previous Utility Period"

ii.  additional equipment having a material impact on utility consumption being introduced or existing equipment being removed by the Authority or the Contractor;

iii.  a variation has been issued in respect of which it can be demonstrated that the usual consumption levels relating to any Utility will change or has changed;

iv.  one Utility is replaced by a different Utility;

v.  a period of extreme weather (summer or winter temperatures) has occurred outside of the normal range of variations.  Adjustments to the agreed Consumption Targets may be agreed by reference to the relevant published degree day values.