6  Entitlement to Make Deductions

6.1  If at any time a Service Failure or Unavailability Event shall occur, then subject to the provisions of this Schedule, the Authority shall be entitled to make Deductions from the Payment in respect of such Service Failure or Unavailability Event.

6.2  Subject to paragraph 6.3 below, the maximum aggregate amount of all Deductions that the Authority can make from the Payment in any Payment Period is the amount of the Payment.

6.3  In the case of the Periodic Services, the Authority shall be entitled to spread the total amount of any Deduction over [♦] consecutive Payment Periods.

6.4  To the extent that any Service Failure or Unavailability Event is the result of an Excusing Cause the Authority shall not be entitled to make Deductions.

6.5  In respect of each Service, there shall be a "bedding-in" period of [♦]14 months commencing on the Service Transfer Date (the Bedding-In Period). During the Bedding-In Period, the following shall apply:

(a)  during the first Payment Period of the Bedding-In Period, no Deductions shall be made in respect of Service Failures occurring in the provision of a relevant Service;

(b)  during the second and third Payment Period of the Bedding-In Period, the amount of any Deductions awarded in respect of Service Failures occurring in the provision of a relevant Service shall be reduced by 50%.

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14 To be bid as part of procurement process.