Common use of Cost Pass Through Event Adjustment Clause in Contracts

Cost Pass Through Event Adjustment. Subject to the approval of the Regulator under the National Gas Rules, Reference Tariffs may be varied after one or more Cost Pass Through Event/s occurs. In the case of all Cost Pass Through Events other than the Retailer Insolvency Event, the Reference Tariffs may only be varied if the Cost Pass Through Event materially increases or materially decreases the cost of providing the Reference Service. In the case of the Retailer Insolvency Event, there is no materiality threshold, such that Reference Tariffs may be varied to pass through the costs and losses associated with the Retailer Insolvency Event (as described in section 4.5.3 below). In all cases, any such variation will take effect from the next 1 July. In making its decision on whether to approve the proposed Cost Pass Through Event variation, the Regulator must take into account the following: a the costs to be passed through are for the delivery of Network Services; b the costs are incremental to costs already allowed for in Reference Tariffs; c the costs to be passed through meet the relevant National Gas Rules criteria for determining the building block for total revenue in determining reference services; d the efficiency of XXX’s decisions and actions in relation to the risk of the Cost Pass Through Event, including whether AGN has failed to take any action that could reasonably be taken to reduce the magnitude of the costs incurred as a result of the Relevant Cost Pass Through Event and whether AGN has taken or omitted to take any action where such action or omission has increased the magnitude of the costs; and e any other factors the Regulator considers relevant and consistent with the National Gas Rules and the National Gas Law. Cost Pass Through Events are:

Cost Pass Through Event Adjustment. ‌ Subject to the approval of the Regulator under the National Gas Rules, Reference Tariffs may be varied after one or more Cost Pass Through Event/s occurs. In the case of all Cost Pass Through Events other than the Retailer Insolvency Event, the Reference Tariffs may only be varied if the Cost Pass Through Event in which each individual event materially increases or materially decreases the cost of providing the Reference Service. In the case of the Retailer Insolvency Event, there is no materiality threshold, such that Reference Tariffs may be varied to pass through the costs and losses associated with the Retailer Insolvency Event (as described in section 4.5.3 below). In all cases, any Any such variation will take effect from the next 1 JulyJulyJanuary. In making its decision on whether to approve the proposed Cost Pass Through Event variation, the Regulator AER must take into account the following: a the costs to be passed through are for the delivery of Network Services; b the costs are incremental to costs already allowed for in Reference Tariffs; c the total costs to be passed through are building block components of total revenue; d the costs to be passed through meet the relevant National Gas Rules criteria for determining the building block for total revenue in determining reference services; d e the efficiency of XXX’s decisions and actions in relation to the risk of the Cost Relevant Pass Through Event, including whether AGN has failed to take any action that could reasonably be taken to reduce the magnitude of the costs incurred as a result of the Relevant Cost Pass Through Event and whether AGN has taken or omitted to take any action where such action or omission has increased the magnitude of the costs; and e f any other factors the Regulator AER considers relevant and consistent with the National Gas Rules and the National Gas Law. Cost Pass Through Events are:

Cost Pass Through Event Adjustment. ‌ Subject to the approval of the Regulator under the National Gas Rules, Reference Tariffs may be varied after one or more Cost Pass Through Event/s occurs. In the case of all Cost Pass Through Events other than the Retailer Insolvency Event, the Reference Tariffs may only be varied if the Cost Pass Through Event in which each individual event materially increases or materially decreases the cost of providing the Reference Service. In the case of the Retailer Insolvency Event, there is no materiality threshold, such that Reference Tariffs may be varied to pass through the costs and losses associated with the Retailer Insolvency Event (as described in section 4.5.3 below). In all cases, any Any such variation will take effect from the next 1 July. In making its decision on whether to approve the proposed Cost Pass Through Event variation, the Regulator AER must take into account the following: a the costs to be passed through are for the delivery of Network Services; b the costs are incremental to costs already allowed for in Reference Tariffs; c the total costs to be passed through are building block components of total revenue; d the costs to be passed through meet the relevant National Gas Rules criteria for determining the building block for total revenue in determining reference services; d e the efficiency of XXX’s decisions and actions in relation to the risk of the Cost Relevant Pass Through Event, including whether AGN has failed to take any action that could reasonably be taken to reduce the magnitude of the costs incurred as a result of the Relevant Cost Pass Through Event and whether AGN has taken or omitted to take any action where such action or omission has increased the magnitude of the costs; and e f any other factors the Regulator AER considers relevant and consistent with the National Gas Rules and the National Gas Law. Cost Pass Through Events are:

Cost Pass Through Event Adjustment. ‌ Subject to the approval of the Regulator under the National Gas Rules, Reference Tariffs may be varied after one or more Cost Pass Through Event/s occurs. In the case of all Cost Pass Through Events (other than the Retailer Insolvency Event), the Reference Tariffs may only be varied if the Cost Pass Through Event materially increases or materially decreases the cost of providing the Reference Service. In the case of the Retailer Insolvency Event, there is no materiality threshold, such that Reference Tariffs may be varied to pass through the costs and losses associated with the Retailer Insolvency Event (as described in section 4.5.3 6.5.1 below). In all cases, any such variation will take effect from the next 1 July. In making its decision on whether to approve the proposed Cost Pass Through Event variation, the Regulator AER must take into account the following: a the costs to be passed through are for the delivery of Network Services; b the costs are incremental to costs already allowed for in Reference Tariffs; c the total costs to be passed through are building block components of total revenue; d the costs to be passed through meet the relevant National Gas Rules criteria for determining the building block for total revenue in determining reference services; d e the efficiency of XXX’s decisions and actions in relation to the risk of the Cost Relevant Pass Through Event, including whether AGN has failed to take any action that could reasonably be taken to reduce the magnitude of the costs incurred as a result of the Relevant Cost Pass Through Event and whether AGN has taken or omitted to take any action where such action or omission has increased the magnitude of the costs; and e f any other factors the Regulator AER considers relevant and consistent with the National Gas Rules and the National Gas Law. Cost Pass Through Events are:

Cost Pass Through Event Adjustment. ‌ Subject to the approval of the Regulator under the National Gas Rules, Reference Tariffs may be varied after one or more Cost Pass Through Event/s occurs. In the case of all Cost Pass Through Events (other than the Retailer Insolvency Event), the Reference Tariffs may only be varied if the Cost Pass Through Event materially increases or materially decreases the cost of providing the Reference Service. In the case of the Retailer Insolvency Event, there is no materiality threshold, such that Reference Tariffs may be varied to pass through the costs and losses associated with the Retailer Insolvency Event (as described in section 4.5.3 6.5.1 below). In all cases, any such variation will take effect from the next 1 July. In making its decision on whether to approve the proposed Cost Pass Through Event variation, the Regulator AER must take into account the following: a the costs to be passed through are for the delivery of Network Services; b the costs are incremental to costs already allowed for in Reference Tariffs; c the total costs to be passed through are building block components of total revenue; d the costs to be passed through meet the relevant National Gas Rules criteria for determining the building block for total revenue in determining reference services; d e the efficiency of XXXMultinet’sAGN’s decisions and actions in relation to the risk of the Cost Relevant Pass Through Event, including whether AGN MultinetAGN has failed to take any action that could reasonably be taken to reduce the magnitude of the costs incurred as a result of the Relevant Cost Pass Through Event and whether AGN MultinetAGN has taken or omitted to take any action where such action or omission has increased the magnitude of the costs; and e f any other factors the Regulator AER considers relevant and consistent with the National Gas Rules and the National Gas Law. Cost Pass Through Events are: