Indexation

2.6.  The Initial Annual Service Dwelling Charge shall be indexed for each Contract Year as follows:

IASDCa  = (IBADC1 x (1 - X)) + (IBADC1 x X x RPI)

IASDCa = Initial Annual Service Dwelling Charge for the relevant Contract Year calculated separately for the Rented Dwelling (being the Initial Annual Rented Dwelling Charge) and the Leasehold Dwellings (being the Initial Annual Leasehold Dwelling Charge)

IBADC1 = Initial Base Annual Dwelling Charge for the first Contract Year

RPI = the value of the Retail Price Index published in respect of the preceding year ended March divided by the value of the relevant Retail Price Index most recently published at Contract Commencement.

X = The percentage that represents the proportion of Contractor's costs that are subject to inflation.

2.7.  The Full Annual Service Dwelling Charge shall be indexed for each Contract Year as follows:

FASDCa  = (FBADC1 x (1 - X)) + (FBADC1 x X x RPI)

FASDCa = Full Annual Service Dwelling Charge for the relevant Contract Year calculated separately for the Rented Dwellings (being the Full Annual Rented Dwelling Charge) and Leasehold Dwellings (being the Full Annual Leasehold Dwelling Charge)

FBADC1 = Full Base Annual Dwelling Charge for the first Contract Year

RPI = the value of the Retail Price Index published in respect of the preceding year ended March divided by the value of the relevant Retail Price Index most recently published at Contract Commencement.

X = The percentage that represents the amount of Contractor's costs that are subject to inflation.

2.8.  Should the Retail Price Index used in paragraph 2.6 and 2.7 respectively cease to be published then a suitable and comparable index shall apply from the date of its last publication. The identity and nature of the replacement index shall be agreed between the Contractor's Representative and the Authority's Representative as soon as practical after the date on which the Retail Price Index ceases to be published or the announcement of the cessation (whichever is earlier). Should the parties fail to agree a suitable index such that the indexation of the Unitary Charge for a second or subsequent Contract Year is unable to be calculated, Clause 60 [of the Project Agreement] (Dispute Resolution) shall apply. Whilst the Dispute is being resolved, the last published Retail Price Index shall be used. An adjustment shall be made to the Unitary Charge payable in respect of the Contract Month immediately following a replacement index being agreed or determined should there be any under or overpayment of the Unitary Charge once a replacement index has been settled.

2.9.  Where the Retail Price Index for any Contract Month that is required to calculate the Initial Service Dwelling Charge or the Full Service Dwelling Charge has not yet been published then the forecast Retail Price Index published for the Contract Month shall be used.  An adjustment shall be made to the Unitary Charge payable in respect of the Contract Month immediately following the date of publication of the Retail Price Index for such Contract Month should there be any under or over payment of the Unitary Charge when the Retail Price Index has been published.