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Common use of Efficient Costs Clause in Contracts

Efficient Costs. For the purposes of calculating the fixed recurring charges and determining whether the costs incurred by the Multiplex Licensee are “Efficient Costs”, it is necessary to have regard to the following: (a) in respect of capital expenditure: (i) the need for the Multiplex Licensee to recover its efficient costs of supplying the Multiplex Transmission Service in accordance with this Agreement and any applicable legal and regulatory obligations; (ii) whether the capital expenditure undertaken by the Multiplex Licensee in relation to the Assets was, at the time it was undertaken, an efficient option having regard to the overall economic life of the Asset and long term planning in respect of the supply of the Multiplex Transmission Service; (iii) whether the capital expenditure undertaken by the Multiplex Licensee was, at the time it was undertaken, consistent with Good Industry Practice; (iv) whether the capital expenditure undertaken by the Multiplex Licensee in relation to the Assets was, at the time it was undertaken and having regard to the circumstances at that time, subject to an appropriate competitive procurement process (or similar process); (v) the value of relevant Assets as shown in audited accounts; and (b) in respect of operational expenditure and expenditure on corporate overheads: (i) the need for the Multiplex Licensee to recover its efficient costs of supplying the Multiplex Transmission Service in accordance with this Agreement and any applicable legal and regulatory obligations; (ii) whether the operational expenditure incurred by the Multiplex Licensee was, at the time it was incurred, reasonably necessary to meet or manage the expected demand for the Multiplex Transmission Service for the relevant period; and (iii) whether the operational expenditure incurred by the Multiplex Licensee was, at the time it was incurred, reasonably necessary to establish and maintain the quality, reliability and security of supply of the Multiplex Transmission Service for the relevant period.

Appears in 4 contracts

Samples: Access Agreement, Access Agreement, Access Agreement

Efficient Costs. For the purposes of calculating the fixed recurring charges and determining whether the costs incurred by the Multiplex Licensee are “Efficient Costs”, it is necessary to have regard to the following: (a) in respect of capital expenditure: (i) the need for the Multiplex Licensee to recover its efficient costs of supplying the Multiplex Transmission Service in accordance with this Agreement and any applicable legal and regulatory obligations; (ii) whether the capital expenditure undertaken by the Multiplex Licensee in relation to the Assets was, at the time it was undertaken, an efficient option having regard to the overall economic life of the Asset and long long-term planning in respect of the supply of the Multiplex Transmission Service; (iii) whether the capital expenditure undertaken by the Multiplex Licensee was, at the time it was undertaken, consistent with Good Industry Practice; (iv) whether the capital expenditure undertaken by the Multiplex Licensee in relation to the Assets was, at the time it was undertaken and having regard to the circumstances at that time, subject to an appropriate competitive procurement process (or similar process); (v) the value of relevant Assets as shown in audited the Multiplex Licensee’s accounts; and (b) in respect of operational expenditure and expenditure on corporate overheads: (i) the need for the Multiplex Licensee to recover its efficient costs of supplying the Multiplex Transmission Service in accordance with this Agreement and any applicable legal and regulatory obligations; (ii) whether the operational expenditure incurred by the Multiplex Licensee was, at the time it was incurred, reasonably necessary to meet or manage the expected demand for the Multiplex Transmission Service for the relevant period; and (iii) whether the operational expenditure incurred by the Multiplex Licensee was, at the time it was incurred, reasonably necessary to establish and maintain the quality, reliability and security of supply of the Multiplex Transmission Service for the relevant period.

Appears in 3 contracts

Samples: Access Agreement, Access Agreement, Access Agreement