Common use of Fixed Principles Clause in Contracts

Fixed Principles. Rule 99 provides for an Access Arrangement to include “fixed principles” that may extend over two or more Access Arrangement Periods. Rule 99(3) states that “A fixed principle approved before the commencement of these rules, or approved by the AER under these rules, is binding on the AER and the service provider for the period for which the principle is fixed”. For the purposes of this Access Arrangement , the following fixed principles will apply: Fixed Principle A 1 The Capital Base at the commencement of an Access Arrangement Period will be the Capital Base at the commencement of the previous Access Arrangement Period, adjusted to take account of: a changes to CPI since 1 January 2003; b depreciation; c New Facilities Investment meeting the requirements of Section 8 of the Access Code; d the sale value of assets that are disposed of in the ordinary course of business since 1 January 2002, other than a disposal of: i all or part of the Distribution System; ii assets pursuant to which the assets of the Service Provider are sold and leased back to the Service Provider; e the Capital Base will not be reduced as a result of assets forming part of the Capital Base becoming redundant; f the difference between forecast and actual capital expenditure in the year prior to the commencement of the previous Access Arrangement Period; For the opening capital base at the commencement of the seventh access arrangement this will instead be based on any differences for the period January 2022 to June 2023. g the difference between forecast and actual disposals in the year prior to the commencement of the previous Access Arrangement Period. For the opening capital base at the commencement of the seventh access arrangement this will instead be based on any differences for the period January 2022 to June 2023.

Fixed Principles. ‌ Rule 99 provides for an Access Arrangement to include “fixed principles” that may extend over two or more Access Arrangement Periods. Rule 99(3) states that “A fixed principle approved before the commencement of these rules, or approved by the AER under these rules, is binding on the AER and the service provider for the period for which the principle is fixed”. For the purposes of this Access Arrangement , the following fixed principles will apply: Fixed Principle A 1 The Capital Base at the commencement of an Access Arrangement Period will be the Capital Base at the commencement of the previous Access Arrangement Period, adjusted to take account of: a changes to CPI since 1 January 2003; b depreciation; c New Facilities Investment meeting the requirements of Section 8 of the Access Code; d the sale value of assets that are disposed of in the ordinary course of business since 1 January 2002, other than a disposal of: i all or part of the Distribution System; ii assets pursuant to which the assets of the Service Provider are sold and leased back to the Service Provider; e the Capital Base will not be reduced as a result of assets forming part of the Capital Base becoming redundant; f the difference between forecast and actual capital expenditure in the year prior to the commencement of the previous Access Arrangement Period; For the opening capital base at the commencement of the seventh access arrangement this will instead be based on any differences for the period January 2022 to June 2023. g the difference between forecast and actual disposals in the year prior to the commencement of the previous Access Arrangement Period. For the opening capital base at the commencement of the seventh access arrangement this will instead be based on any differences for the period January 2022 to June 2023.