Common use of Charging Principles Clause in Contracts

Charging Principles. 15.1 Subject to the remainder of this paragraph 15, any funding arrangements entered into between National Grid and the Councils under specific Work Packages shall be in accordance with the following principles: (a) the charging relates exclusively to each Council's recovery of its costs for the provision of services it is authorised but not required (by an enactment) to provide; (b) the payments are on a not-for profit basis (year by year) and, taking one year with another, the income from the charges for such services must not exceed the cost of providing them; (c) there shall be full transparency with regard to costs incurred; (d) the sole basis for charging is that the Councils can recover resources expended to achieve delivery of an Approved Work Package (as defined in Schedule 4), in accordance with this Agreement and the terms of the Work Package; (e) the Councils shall use all reasonable endeavours to keep costs payable by National Grid under this Agreement to a minimum including but not limited to sharing resources between each Council, making the best use of available information having due regard to statutory obligations; and (f) National Grid does not have to pay for any work forming part of a Work Package that National Grid has not given its prior approval to via the Strategic Project Board or otherwise 15.2 In the event that anticipated resource expenditure required to complete any Work Package is reasonably expected to exceed the authorised expenditure limit for that Work Package, this shall immediately be brought to the attention of the Strategic Project Board and separately to National Grid and no further financial commitment shall be entered into in respect of that Work Package until either National Grid has so agreed or the Councils have chosen to pursue that Work Package (or relevant part of it) using its/their own sources of funding. 15.3 Subject to paragraph 15.4, costs eligible for charging to National Grid shall be based: (a) where the work is carried out by third parties under contract, on the amounts invoiced to the Party that commissions the work; (b) where the work is carried out by a Council‟s employees, on the internal staff resources necessary and committed in the agreed Work Package. For the avoidance of doubt such resources may include those used to administer third party contracts required for the implementation of this Agreement and for the further avoidance of doubt may include those used to provide legal and financial advice, project management and support in accordance with an agreed Work Package. 15.4 Any charging by the Councils and agreed by National Grid shall be carried out in accordance with the provisions of section 93 of the Local Government ▇▇▇ ▇▇▇▇, any relevant Government guidance and the guidance and requirements of the professional codes of practice issued by CIPFA from time to time. 15.5 For the avoidance of doubt National Grid offers no commitment to fund any part of a Council's expenditure in respect of any particular Work Package which exceeds the authorised expenditure limit for that Work Package until National Grid has approved such expenditure but notwithstanding the Council shall be free to continue with any work under such Work Package as it sees fit and at its own cost. 15.6 The Parties agree that nothing in this Agreement shall require National Grid to fund any mitigation related to the Project. Such matters are to be dealt with separately as appropriate.

Charging Principles. 15.1 8.1 Subject to the remainder of this paragraph 15clause 8, any funding arrangements entered into between National Grid the Developer and the Councils under specific ERYC pursuant to a Work Packages Package shall be in accordance with the following principles: (a) the charging relates Any charges made by ERYC shall relate exclusively to the resources identified in the Resource Plan prepared in relation to each Council's recovery of its costs for Work Package and shall be in the provision of services it Agreed Sum unless, subject to sub-clause 8.1(e) below, an uplift is authorised but not required (by an enactment) to provideagreed between the Parties in accordance with clause 8.2; (b) There shall be full transparency with regard to any costs which ERYC incurs; (c) ERYC shall use all reasonable endeavours to keep the costs payable by the Developer under this Agreement to a minimum and making the best use of available information having due regard to statutory obligations; (d) A payment shall only be made by the Developer in respect of costs which have had its prior written approval; and (e) Any payments made by the Developer are to be made on a not-for profit basis (year by year) and, taking one year with another, the income from received by EYRC for the charges for such services provided in relation to the carrying out of a Work Package must not exceed the cost of providing them;those services. (c) there shall be full transparency with regard to costs incurred; (d) the sole basis for charging is that the Councils can recover resources expended to achieve delivery of an Approved Work Package (as defined in Schedule 4), in accordance with this Agreement and the terms of the Work Package; (e) the Councils shall use all reasonable endeavours to keep costs payable by National Grid under this Agreement to a minimum including but not limited to sharing resources between each Council, making the best use of available information having due regard to statutory obligations; and (f) National Grid does not have to pay for any work forming part of a Work Package that National Grid has not given its prior approval to via the Strategic Project Board or otherwise 15.2 8.2 In the event that anticipated resource expenditure the Agreed Sum is going to be exceeded, EYRC shall immediately notify the Developer and confirm the uplift required in order to complete any continue progressing and/or secure the completion of the relevant Work Package is reasonably expected to exceed (“the authorised expenditure limit for that Work Package, this Uplift”). No further steps shall immediately be brought taken in relation to the attention of the Strategic Project Board and separately to National Grid and no further financial commitment shall be entered into in respect of that relevant Work Package until either National Grid the Developer has so agreed approved the Uplift or the Councils have ERYC has chosen to pursue that continue with the execution of the Work Package (or relevant a discrete part of it) using its/their own sources of funding. 15.3 Subject to paragraph 15.4, costs eligible for charging to National Grid shall be based: (a) where the work is carried out by third parties under contract, on the amounts invoiced to the Party that commissions the work; (b) where the work is carried out by a Council‟s employees, on the internal staff resources necessary and committed in the agreed Work Package. For the avoidance of doubt such resources may include those used to administer third party contracts required for the implementation of this Agreement and for the further avoidance of doubt may include those used to provide legal and financial advice, project management and support in accordance with an agreed Work Package. 15.4 Any charging by the Councils and agreed by National Grid shall be carried out in accordance with the provisions of section 93 of the Local Government ▇▇▇ ▇▇▇▇, any relevant Government guidance and the guidance and requirements of the professional codes of practice issued by CIPFA from time to time. 15.5 For the avoidance of doubt National Grid offers no commitment to fund any part of a Council's expenditure in respect of any particular Work Package which exceeds the authorised expenditure limit for that Work Package until National Grid has approved such expenditure but notwithstanding the Council shall be free to continue with any work under such Work Package as it sees fit and at its own cost. 15.6 The Parties agree that nothing 8.3 Unless otherwise agreed in writing between the Parties, any payments made by the Developer under the terms of this Agreement shall require National Grid to fund any mitigation related to be made in accordance with the Project. Such matters are to be dealt with separately as appropriatePayment Arrangements.

Charging Principles. 15.1 Subject to the remainder of this paragraph 15, any funding arrangements entered into between National Grid and the Councils under specific Work Packages shall be in accordance with the following principles: (a) the charging relates exclusively to each Council's recovery of its costs for the provision of services associated with the processing of the Project which it is authorised but not required (by an enactment) to provide, save that charging may not relate to any Council’s substantive decision making, and provided that National Grid shall not be required to reimburse the Council any amount of or in respect of VAT chargeable on supplies made to the Council; (b) the payments are on a not-for profit basis (year by year) and, taking one year with another, the income from the charges for such services must not exceed the cost of providing them; (c) there shall be full transparency with regard to costs incurred; (d) the sole basis for charging is that the Councils can recover resources expended to achieve delivery of an Approved Work Package (as defined in Schedule 4), in accordance with this Agreement PPA and the terms of the Work Package; (e) the Councils shall use all reasonable endeavours to keep costs payable by National Grid under this Agreement PPA to a minimum including but not limited to sharing resources between each Council, making the best use of available information having due regard to statutory obligations; and (f) National Grid does not have to pay for any work forming part of a Work Package that National Grid has not given its prior approval to via the Strategic Project Board or otherwise 15.2 In the event that anticipated resource expenditure required to complete any Work Package is reasonably expected to exceed the authorised expenditure limit for that Work Package, this shall immediately be brought to the attention of the Strategic Project Board and separately to National Grid and no further financial commitment shall be entered into in respect of that Work Package until either National Grid has so agreed or the Councils have chosen to pursue that Work Package (or relevant part of it) using its/their own sources of funding. 15.3 Subject to paragraph 15.4, costs eligible for charging to National Grid shall be based: (a) where the work is carried out by third parties under contract, on the amounts invoiced to the Party that commissions the work; (b) where the work is carried out by a Council‟s Council’s employees, on the internal staff resources necessary and committed in the agreed Work Package. For the avoidance of doubt such resources may include those used to administer third party contracts required for the implementation of this Agreement PPA and for the further avoidance of doubt may include those used to provide legal and financial advice, project management and support in accordance with an agreed Work Package. 15.4 Any charging by the Councils and agreed by National Grid shall be carried out in accordance with the provisions of section 93 of the Local Government ▇▇▇ ▇▇▇▇Act 2003, any relevant Government guidance and the guidance and requirements of the professional codes of practice issued by CIPFA from time to time. 15.5 For the avoidance of doubt National Grid offers no commitment to fund any part of a Council's expenditure in respect of any particular Work Package which exceeds the authorised expenditure limit for that Work Package until National Grid has approved such expenditure but notwithstanding the Council shall be free to continue with any work under such Work Package as it sees fit and at its own cost. 15.6 The Parties agree that nothing in this Agreement PPA shall require National Grid to fund any mitigation related to the Project. Such matters are to be dealt with separately as appropriate. 15.7 This paragraph (15) and Schedule 4 to this Agreement shall be legally binding in their entirety as between the National Grid of the first part and the Councils of the other part and specifically (without prejudice to the generality of the foregoing) as to Invoicing Procedures between the National Grid and Cumbria County Council as lead authority. 16 INVOICING AND PAYMENT Invoicing and payment shall take place in accordance with the arrangements set out in Schedule 4 or as may from time to time be varied with the agreement of the individual Parties by and to whom invoices are being issued.

Charging Principles. 15.1 Subject The Charges offered by the Supplier to the remainder Authority for the provision of the Goods and Services shall be calculated in accordance with Paragraphs 3 to 6. Except for Exceptional Costs no other amounts shall be paid for the performance of the Supplier's obligations, unless specified otherwise in this Agreement or unless agreed through Schedule 8.2 (Change Control Procedure). The Supplier shall not be entitled to include within its calculation of Transition Costs or Operational Services Costs any of the following (which together shall be referred to as "Excluded Costs"): any part of any cost which exceeds what would be incurred by the Supplier on an arm's length commercial basis; or any part of those sums which exceeds what is fair and reasonable; or any sums described above which are not supported by appropriate evidence; or any sums that are not considered as Value for Money for the Authority; or any sums that have already been recovered by the Supplier from the Authority under any other Charge or payment under this Agreement; or any sums incurred by the Supplier as a result of: any failure of the Supplier or its Sub-Contractors to comply with the terms of this paragraph 15, Agreement; any funding arrangements entered into between National Grid and failure of the Councils under specific Work Packages shall be Supplier or its Sub-Contractors to maintain any equipment or software in accordance with the following principles: (a) terms of this Agreement; any negligent or irresponsible action of the charging relates exclusively to each Council's recovery Supplier or its Sub-Contractors; any sums incurred in the implementation of its costs for the provision of services it is authorised but not required (by an enactment) to provide; (b) the payments are on a not-for profit basis (year by year) and, taking one year with another, the income from the charges for such services must not exceed the cost of providing them; (c) there shall be full transparency with regard to costs incurred; (d) the sole basis for charging is that the Councils can recover resources expended to achieve delivery of an Approved Work Package (as defined in Schedule 4), any Rectification Plan. Unless agreed in accordance with this Agreement and the terms of the Work Package; Schedule 8.2 (eChange Control Procedure) the Councils shall use all reasonable endeavours to keep costs payable by National Grid under this Agreement to a minimum including but not limited to sharing resources between each Council, making the best use of available information having due regard to statutory obligations; and (f) National Grid does not have to pay for any work forming part of a Work Package that National Grid has not given its prior approval to via the Strategic Project Board or otherwise 15.2 In the event that anticipated resource expenditure required to complete any Work Package is reasonably expected to exceed the authorised expenditure limit for that Work Package, this shall immediately be brought to the attention of the Strategic Project Board and separately to National Grid and no further financial commitment shall be entered into in respect of that Work Package until either National Grid has so agreed or the Councils have chosen to pursue that Work Package (or relevant part of it) using its/their own sources of funding. 15.3 Subject to paragraph 15.4, costs eligible for charging to National Grid shall be based: (a) where the work is carried out by third parties under contract, on the amounts invoiced to the Party that commissions the work; (b) where the work is carried out by a Council‟s employees, on the internal staff resources necessary and committed in the agreed Work Package. For the avoidance of doubt such resources may include those used to administer third party contracts required for the implementation of this Agreement and for the further avoidance of doubt may include those used to provide legal and financial advice, project management and support in accordance with an agreed Work Package. 15.4 Any charging by the Councils and agreed by National Grid shall be carried out Schedule 7.3 (Benchmarking) or in accordance with the provisions Quarterly Range Review meeting (QRR) and save for the Open Book Rebate at Clause 14 below, neither the Charges nor any other cost, Charge or expense shall be adjusted to take account of section 93 any inflation, changes to interest rate or any other factor including Change in Law or element which might otherwise increase the cost to the Supplier or the Supplier Subcontractors of the Local Government ▇▇▇ ▇▇▇▇, performance of their obligations. The Supplier shall promptly provide all information reasonably requested by the Authority to explain the Charges being made by the Supplier (including any relevant Government guidance and the guidance and requirements of the professional codes of practice issued by CIPFA from time to timeSupplier Subcontractors). 15.5 For the avoidance of doubt National Grid offers no commitment to fund any part of a Council's expenditure in respect of any particular Work Package which exceeds the authorised expenditure limit for that Work Package until National Grid has approved such expenditure but notwithstanding the Council shall be free to continue with any work under such Work Package as it sees fit and at its own cost. 15.6 The Parties agree that nothing in this Agreement shall require National Grid to fund any mitigation related to the Project. Such matters are to be dealt with separately as appropriate.