Common use of Materiality Threshold Clause in Contracts

Materiality Threshold. For the purpose of a defined Cost Pass-through Event which has a materiality threshold of materially increasing or decreasing the costs to Service Provider of providing the Reference Service, an event is considered to materially increase or materially decrease costs where that event is reasonably expected to have an impact of one per cent of the smoothed forecast revenue specified in the Access Arrangement Information, in the years of the Access Arrangement Period that the costs are incurred. The defined Cost Pass-through Events with this materiality threshold are: Insurance Cap Event; insurer credit risk event; natural disaster event; regulatory change event; service standard event; tax change event; and terrorism event. No materiality threshold applies to the Carbon Cost Event.

Materiality Threshold. For the purpose of a defined Cost Pass-through Event which has a materiality threshold of materially increasing or decreasing the costs to Service Provider of providing the Reference Service, an event is considered to materially increase or materially decrease costs where that event is reasonably expected to have has an impact of one per cent of the smoothed forecast revenue specified in the Access Arrangement Information, in the years of the Access Arrangement Period that the costs are incurred. The defined Cost Pass-through Events with this materiality threshold are: Insurance Cap Eventinsurance cap event; insurer credit risk event; natural disaster event; regulatory change event; service standard event; tax change event; and terrorism event. No materiality threshold applies to the Carbon Cost Eventcarbon liability event.