39.7  Step-In in the event of a Breach

If the Required Action is taken as a result of a breach of the obligations by the Service Provider under this Contract, then for so long as and to the extent that any Required Action is taken, and this prevents the Service Provider from providing any part of the Service:

(a)  the Service Provider shall be relieved of its obligations to provide such part of the Service; and

(b)  in respect of the period in which the Authority is taking the Required Action, the Unitary Charge due from the Authority to the Service Provider shall equal the amount the Service Provider would receive if it were satisfying all of its obligations and providing the Service affected by the Required Action in full over that period (with the exception of Adjustments under PS1 of Part 2 of the Payment Mechanism) which shall continue to be made at the level they were being made immediately prior to the Authority exercising its right of Step-In), less an amount equal to all the Authority's costs of operation in taking the Required Action.