Common use of CPI Adjustment Clause in Contracts

CPI Adjustment. (a) On 1 January of each Year (commencing in the year set out in the relevant Commercial Terms Schedule), all of the rates and charges set out in the Commercial Terms Schedules will be adjusted by multiplying them by the Escalation Factor for that year, and the relevant Schedules will be deemed to have been varied to incorporate the adjusted rates and charges. (b) The Escalation Factor for each year is calculated as: 1 + ((CPIa -CPIb) / CPIb) where: (i) CPIa means CPI in respect of the September Quarter immediately preceding the relevant adjustment date; (ii) CPIb means CPI in respect of the September Quarter that is 12 months before the quarter to which CPIa relates; and (iii) if CPIa is less than CPIb, then ((CPIa-CPIb) / CPIb) is deemed to be zero; and (iv) CPI means the consumer price index (weighted average for 8 capital cities, all groups) published from time to time by the Australian Bureau of Statistics or if that index is suspended or discontinued or if the basis of assessment is changed so that it no longer accurately reflects changes in the prevailing levels of prices substantially in the same manner as it did prior to the change in basis, then an alternative index that reflects movements in the cost of living in all of the capital cities of Australia will be selected by Service Provider and substituted for the relevant index for the period of the suspension or, in the case of a discontinuance of the CPI or a material alteration in its calculation, on a permanent basis and the calculation of the adjustments to be made under clause 17.2(a) will be made using such alternative index as though it was the CPI.

Appears in 2 contracts

Samples: Gas Transportation Agreement, Gas Transportation Agreement

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CPI Adjustment. (a) On 1 January of each Year (commencing in the year set out in the relevant Commercial Terms Schedule), all of the rates and charges set out in the Commercial Terms Schedules will be adjusted by multiplying them by the Escalation Factor for that year, and the relevant Schedules will be deemed to have been varied to incorporate the adjusted rates and charges. (b) The Escalation Factor for each year is calculated as: 1 + ((CPIa -CPIb- CPIb) / CPIb) where: (i) CPIa means CPI in respect of the September Quarter immediately preceding the relevant adjustment date; (ii) CPIb means CPI in respect of the September Quarter that is 12 months before the quarter to which CPIa relates; and; (iii) if CPIa is less than CPIb, then ((CPIa-CPIb) / CPIb) is deemed to be zero; and (iv) CPI means the consumer price index (weighted average for 8 capital cities, all groups) published from time to time by the Australian Bureau of Statistics or if that index is suspended or discontinued or if the basis of assessment is changed so that it no longer accurately reflects changes in the prevailing levels of prices substantially in the same manner as it did prior to the change in basis, then an alternative index that reflects movements in the cost of living in all of the capital cities of Australia will be selected by Service Provider and substituted for the relevant index for the period of the suspension or, in the case of a discontinuance of the CPI or a material alteration in its calculation, on a permanent basis and the calculation of the adjustments to be made under clause 17.2(a18.2(a) will be made using such alternative index as though it was the CPI.

Appears in 2 contracts

Samples: Gas Transportation Agreement, Gas Transportation Agreement

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CPI Adjustment. β€Œ (a) On 1 January of each Year (commencing in the year set out in the relevant Commercial Terms Schedule), all of the rates and charges set out in the Commercial Terms Schedules will be adjusted by multiplying them by the Escalation Factor for that year, and the relevant Schedules will be deemed to have been varied to incorporate the adjusted rates and charges. (b) The Escalation Factor for each year is calculated as: 1 + ((CPIa -CPIb- CPIb) / CPIb) where: (i) CPIa means CPI in respect of the September Quarter immediately preceding the relevant adjustment date; (ii) CPIb means CPI in respect of the September Quarter that is 12 months before the quarter to which CPIa relates; and; (iii) if CPIa is less than CPIb, then ((CPIa-CPIb) CPIb / CPIb) is CPIb)is deemed to be zero; and (iv) CPI means the consumer price index (weighted average for 8 capital cities, all groups) published from time to time by the Australian Bureau of Statistics or if that index is suspended or discontinued or if the basis of assessment is changed so that it no longer accurately reflects changes in the prevailing levels of prices substantially in the same manner as it did prior to the change in basis, then an alternative index that reflects movements in the cost of living in all of the capital cities of Australia will be selected by Service Provider and substituted for the relevant index for the period of the suspension or, in the case of a discontinuance of the CPI or a material alteration in its calculation, on a permanent basis and the calculation of the adjustments to be made under clause 17.2(a18.2(a) will be made using such alternative index as though it was the CPI.

Appears in 1 contract

Samples: Gas Transportation Agreement

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