Common use of Effect on Reference Tariffs Clause in Contracts

Effect on Reference Tariffs. a This Section 8.3 describes how Incremental Users will be charged for an Incremental Reference Services to which this Access Arrangement applies pursuant to Section 8.2. b Where capital expenditure constituted by an extension or expansion is conforming capital expenditure, Incremental Users will be charged at the prevailing Reference Tariffs and, as permitted by Rule 77(2) of the National Gas Rules, AGN will include the conforming capital expenditure in the opening Capital Base for the next Access Arrangement Period. AGN may, at its discretion, seek the Regulator’s determination prior to the next Access Arrangement Period that capital expenditure is conforming capital expenditure. c Where capital expenditure constituted by an extension or expansion is non-conforming capital expenditure (in whole or in part): i the non-conforming capital expenditure may be (subject to the Rules): 1 recovered from Incremental Users by way of capital contribution, in which case the Incremental Users would be charged according to the prevailing Reference Tariffs (as to that part of the capital expenditure constituted by an extension or expansion that is conforming capital expenditure, if any) plus the capital contribution; 2 recovered from Incremental Users by way of a surcharge approved by the Regulator under Rule 83 of the Rules, in which case the Incremental Users would be charged according to the prevailing Reference Tariffs (as to that part of the capital expenditure constituted by an extension or expansion that is conforming capital expenditure, if any) plus the surcharge; 3 included in a Speculative Capital Expenditure Account under Section 9 to the extent that it is not recovered through a capital contribution or a surcharge, in which case Incremental Users would be charged according to the prevailing Reference Tariffs as to that part of the capital expenditure constituted by an extension or expansion that is conforming capital expenditure, if any; or 4 recovered by a combination of these approaches, in which case Incremental Users would be charged according to the prevailing Reference Tariffs (as to that part of the capital expenditure constituted by an extension or expansion that is conforming capital expenditure, if any) plus, as applicable, a capital contribution and an approved surcharge; and ii AGN will notify the relevant Incremental Users of its choice between these approaches prior to the extension or expansion entering into service. d Where AGN recovers non-conforming capital expenditure by way of capital contribution, AGN will include the whole of the capital expenditure in the opening Capital Base for the next Access Arrangement Period and will also include the capital contribution (as a negative amount, so that AGN will not benefit by way of increased revenue). e Where AGN recovers non-conforming capital expenditure by way of a surcharge, AGN will include that part of capital expenditure that is conforming capital expenditure in the opening Capital Base for the next Access Arrangement Period and, as required by Rule 83(3), will not include the non-conforming capital expenditure that is, or is to be, recovered by way of the surcharge. f Where a Network Service other than an Incremental Reference Service, is provided pursuant to an extension or expansion, AGN will negotiate the Charge in good faith with the relevant Network Users (subject to the relevant provisions of the National Gas Rules).

Effect on Reference Tariffs. ‌ a This Section 8.3 describes how Incremental Users will be charged for an Incremental Reference Services to which this Access Arrangement applies pursuant to Section 8.2. b Where capital expenditure constituted by an extension or expansion is conforming capital expenditure, Incremental Users will be charged at the prevailing Reference Tariffs and, as permitted by Rule 77(2) of the National Gas Rules, AGN will include the conforming capital expenditure in the opening Capital Base for the next Access Arrangement Period. AGN may, at its discretion, seek the Regulator’s determination prior to the next Access Arrangement Period that capital expenditure is conforming capital expenditure. c Where capital expenditure constituted by an extension or expansion is non-conforming capital expenditure (in whole or in part): i the non-conforming capital expenditure may be (subject to the Rules): 1 recovered from Incremental Users by way of capital contribution, in which case the Incremental Users would be charged according to the prevailing Reference Tariffs (as to that part of the capital expenditure constituted by an extension or expansion that is conforming capital expenditure, if any) plus the capital contribution; 2 recovered from Incremental Users by way of a surcharge approved by the Regulator under Rule 83 of the Rules, in which case the Incremental Users would be charged according to the prevailing Reference Tariffs (as to that part of the capital expenditure constituted by an extension or expansion that is conforming capital expenditure, if any) plus the surcharge; 3 included in a Speculative Capital Expenditure Account under Section 9 to the extent that it is not recovered through a capital contribution or a surcharge, in which case Incremental Users would be charged according to the prevailing Reference Tariffs as to that part of the capital expenditure constituted by an extension or expansion that is conforming capital expenditure, if any; or 4 recovered by a combination of these approaches, in which case Incremental Users would be charged according to the prevailing Reference Tariffs (as to that part of the capital expenditure constituted by an extension or expansion that is conforming capital expenditure, if any) plus, as applicable, a capital contribution and an approved surcharge; and ii AGN will notify the relevant Incremental Users of its choice between these approaches prior to the extension or expansion entering into service. d Where AGN recovers non-conforming capital expenditure by way of capital contribution, AGN will include the whole of the capital expenditure in the opening Capital Base for the next Access Arrangement Period and will also include the capital contribution (as a negative amount, so that AGN will not benefit by way of increased revenue). e Where AGN recovers non-conforming capital expenditure by way of a surcharge, AGN will include that part of capital expenditure that is conforming capital expenditure in the opening Capital Base for the next Access Arrangement Period and, as required by Rule 83(3), will not include the non-conforming capital expenditure that is, or is to be, recovered by way of the surcharge. f Where a Network Service other than an Incremental Reference Service, is provided pursuant to an extension or expansion, AGN will negotiate the Charge in good faith with the relevant Network Users (subject to the relevant provisions of the National Gas Rules).

Effect on Reference Tariffs. a This Section 8.3 describes how Incremental Users will be charged for an Incremental Reference Services to which this Access Arrangement applies pursuant to Section 8.2. b Where capital expenditure constituted by an extension or expansion is conforming capital expenditure, Incremental Users will be charged at the prevailing Reference Tariffs and, as permitted by Rule 77(2) of the National Gas Rules, AGN will include the conforming capital expenditure in the opening Capital Base for the next Access Arrangement Period. AGN may, at its discretion, seek the Regulator’s determination prior to the next Access Arrangement Period that capital expenditure is conforming capital expenditure. c Where capital expenditure constituted by an extension or expansion is non-conforming capital expenditure (in whole or in part): i the Itthe non-conforming capital expenditure may be (subject to the Rules): 1 recovered from Incremental Users by way of capital contribution, in which case the Incremental Users would be charged according to the prevailing Reference Tariffs (as to that part of the capital expenditure constituted by an extension or expansion that is conforming capital expenditure, if any) plus the capital contribution; 2 recovered from Incremental Users by way of a surcharge approved by the Regulator under Rule 83 of the Rules, in which case the Incremental Users would be charged according to the prevailing Reference Tariffs (as to that part of the capital expenditure constituted by an extension or expansion that is conforming capital expenditure, if any) plus the surcharge; 3 included in a Speculative Capital Expenditure Account under Section 9 to the extent that it is not recovered through a capital contribution or a surcharge, in which case Incremental Users would be charged according to the prevailing Reference Tariffs as to that part of the capital expenditure constituted by an extension or expansion that is conforming capital expenditure, if any; or 4 recovered by a combination of these approaches, in which case Incremental Users would be charged according to the prevailing Reference Tariffs (as to that part of the capital expenditure constituted by an extension or expansion that is conforming capital expenditure, if any) plus, as applicable, a capital contribution and an approved surcharge; and ii AGN will notify the relevant Incremental Users of its choice between these approaches prior to the extension or expansion entering into service. d Where AGN recovers non-conforming capital expenditure by way of capital contribution, AGN will include the whole of the capital expenditure in the opening Capital Base for the next Access Arrangement Period and will also include the capital contribution (as a negative amount, so that AGN will not benefit by way of increased revenue). e Where AGN recovers non-conforming capital expenditure by way of a surcharge, AGN will include that part of capital expenditure that is conforming capital expenditure in the opening Capital Base for the next Access Arrangement Period and, as required by Rule 83(3), will not include the non-conforming capital expenditure that is, or is to be, recovered by way of the surcharge. f Where a Network Service other than an Incremental Reference Service, is provided pursuant to an extension or expansion, AGN will negotiate the Charge in good faith with the relevant Network Users (subject to the relevant provisions of the National Gas Rules).

Effect on Reference Tariffs. ‌ a This Section 8.3 describes how Incremental Users will be charged for an Incremental Reference Services to which this Access Arrangement applies pursuant to Section 8.2. b Where capital expenditure constituted by an extension or expansion is conforming capital expenditure, Incremental Users will be charged at the prevailing Reference Tariffs and, as permitted by Rule 77(2) of the National Gas Rules, AGN will include the conforming capital expenditure in the opening Capital Base for the next Access Arrangement Period. AGN may, at its discretion, seek the Regulator’s determination prior to the next Access Arrangement Period that capital expenditure is conforming capital expenditure. c Where capital expenditure constituted by an extension or expansion is non-conforming capital expenditure (in whole or in part): i the Itthe non-conforming capital expenditure may be (subject to the Rules): 1 recovered from Incremental Users by way of capital contribution, in which case the Incremental Users would be charged according to the prevailing Reference Tariffs (as to that part of the capital expenditure constituted by an extension or expansion that is conforming capital expenditure, if any) plus the capital contribution; 2 recovered from Incremental Users by way of a surcharge approved by the Regulator under Rule 83 of the Rules, in which case the Incremental Users would be charged according to the prevailing Reference Tariffs (as to that part of the capital expenditure constituted by an extension or expansion that is conforming capital expenditure, if any) plus the surcharge; 3 included in a Speculative Capital Expenditure Account under Section 9 to the extent that it is not recovered through a capital contribution or a surcharge, in which case Incremental Users would be charged according to the prevailing Reference Tariffs as to that part of the capital expenditure constituted by an extension or expansion that is conforming capital expenditure, if any; or 4 recovered by a combination of these approaches, in which case Incremental Users would be charged according to the prevailing Reference Tariffs (as to that part of the capital expenditure constituted by an extension or expansion that is conforming capital expenditure, if any) plus, as applicable, a capital contribution and an approved surcharge; and ii AGN will notify the relevant Incremental Users of its choice between these approaches prior to the extension or expansion entering into service. d Where AGN recovers non-conforming capital expenditure by way of capital contribution, AGN will include the whole of the capital expenditure in the opening Capital Base for the next Access Arrangement Period and will also include the capital contribution (as a negative amount, so that AGN will not benefit by way of increased revenue). e Where AGN recovers non-conforming capital expenditure by way of a surcharge, AGN will include that part of capital expenditure that is conforming capital expenditure in the opening Capital Base for the next Access Arrangement Period and, as required by Rule 83(3), will not include the non-conforming capital expenditure that is, or is to be, recovered by way of the surcharge. f Where a Network Service other than an Incremental Reference Service, is provided pursuant to an extension or expansion, AGN will negotiate the Charge in good faith with the relevant Network Users (subject to the relevant provisions of the National Gas Rules).

Effect on Reference Tariffs. ‌ a This Section 8.3 describes how Incremental Users will be charged for an Incremental Reference Services to which this Access Arrangement applies pursuant to Section 8.2. b Where capital expenditure constituted by an extension or expansion is conforming capital expenditure, Incremental Users will be charged at the prevailing Reference Tariffs and, as permitted by Rule 77(2) of the National Gas Rules, AGN MultinetAGN will include the conforming capital expenditure in the opening Capital Base for the next Access Arrangement Period. AGN MultinetAGN may, at its discretion, seek the Regulator’s determination prior to the next Access Arrangement Period that capital expenditure is conforming capital expenditure. c Where capital expenditure constituted by an extension or expansion is non-conforming capital expenditure (in whole or in part): i the non-conforming capital expenditure may be (subject to the Rules): 1 recovered from Incremental Users by way of capital contribution, in which case the Incremental Users would be charged according to the prevailing Reference Tariffs (as to that part of the capital expenditure constituted by an extension or expansion that is conforming capital expenditure, if any) plus the capital contribution; 2 recovered from Incremental Users by way of a surcharge approved by the Regulator under Rule 83 of the Rules, in which case the Incremental Users would be charged according to the prevailing Reference Tariffs (as to that part of the capital expenditure constituted by an extension or expansion that is conforming capital expenditure, if any) plus the surcharge; 3 included in a Speculative Capital Expenditure Account under Section 9 to the extent that it is not recovered through a capital contribution or a surcharge, in which case Incremental Users would be charged according to the prevailing Reference Tariffs as to that part of the capital expenditure constituted by an extension or expansion that is conforming capital expenditure, if any; or 4 recovered by a combination of these approaches, in which case Incremental Users would be charged according to the prevailing Reference Tariffs (as to that part of the capital expenditure constituted by an extension or expansion that is conforming capital expenditure, if any) plus, as applicable, a capital contribution and an approved surcharge; and ii AGN MultinetAGN will notify the relevant Incremental Users of its choice between these approaches prior to the extension or expansion entering into service. d Where AGN recovers non-conforming capital expenditure by way of capital contribution, AGN will include the whole of the capital expenditure in the opening Capital Base for the next Access Arrangement Period and will also include the capital contribution (as a negative amount, so that AGN will not benefit by way of increased revenue). e Where AGN recovers non-conforming capital expenditure by way of a surcharge, AGN will include that part of capital expenditure that is conforming capital expenditure in the opening Capital Base for the next Access Arrangement Period and, as required by Rule 83(3), will not include the non-conforming capital expenditure that is, or is to be, recovered by way of the surcharge. f Where a Network Service other than an Incremental Reference Service, is provided pursuant to an extension or expansion, AGN will negotiate the Charge in good faith with the relevant Network Users (subject to the relevant provisions of the National Gas Rules).