PART 6Calculation of tariffs and cost control
Calculation of subsequent tariffs
37.—(1) The subsequent tariff for an accredited domestic plant is calculated in accordance with this regulation.
(2) For the financial year (“FY1”) commencing immediately following the end of the initial tariff period, the subsequent tariff is, if FY1—
(a)commences on 1st April 2014, the tariff set out in Schedule 5;
(b)does not commence on 1st April 2014, calculated in accordance with the following formula—
the resulting figure being stated to two decimal places and rounded to the nearest hundredth of a penny with any two hundredth of a penny being rounded upwards.
(3) For each financial year after FY1, the subsequent tariff is calculated in accordance with the following formula—
the resulting figure being stated to two decimal places and rounded to the nearest hundredth of a penny with any two hundredth of a penny being rounded upwards.
(4) In paragraphs (2) and (3)—
(a)A is the initial tariff for the accredited domestic plant;
(b)B is the subsequent tariff for the accredited domestic plant in the immediately preceding financial year; and
(c)C is the percentage increase or decrease in the retail prices index for the calendar year ending on 31st December immediately preceding the commencement of the financial year for which the subsequent tariff is being calculated.