Pass-Through Amounts Clause Samples
The Pass-Through Amounts clause defines how certain costs, fees, or charges incurred by one party are transferred or "passed through" to another party, typically the client or end user. In practice, this means that expenses such as taxes, regulatory fees, or third-party charges that the service provider pays on behalf of the client are billed directly to the client without markup. This clause ensures that the service provider is not financially responsible for costs outside their control, thereby allocating risk and maintaining transparency in billing.
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Pass-Through Amounts. (a) If, and to the extent, permitted by Law:
(i) any charge, cost, expense, levy, fee, liability, penalty or other amount of any kind is payable or incurred by ADEWAP in an Invoice Period as a result of, or in connection with:
(A) the provision by ADEWAP at any time of the Reference Service;
(B) the operation of the Network or the transfer of electricity to, through or out of the Network (including, for example, the maintenance of Power System security and/or reliability of the Power System or the provision or receipt of any Essential System Service);
(C) the delivery of electricity into or out of the Network by or for User; or
(D) any act or omission by or on behalf of User at any time in relation to, or in connection with, the Reference Service; and
(ii) that charge, cost, expense, ▇▇▇▇, fee, liability, penalty or other amount:
(A) has not been taken into account in fixing the Tariff applying to that Invoice Period; and
(B) is not otherwise to be paid or reimbursed to ADEWAP under any other provision of this Agreement, (Pass Through Amount) then, subject to clause 11.3(b), ADEWAP may pass through the full amount of that Pass-Through Amount to User by including that amount in any Tax Invoice to be rendered by ADEWAP under this Agreement which amount must be paid at the same time and in the same manner as the remainder of that Tax Invoice is required to be paid under this Agreement by User.
(b) If a particular Pass-Through Amount is attributable, in part, to:
(i) the provision by ADEWAP of a Service on the Network to one or more Other Users;
(ii) the operation of the Network or the transfer of electricity to, through or out of the Network (including, for example, the maintenance of Power System security and/or reliability of the Power System or the provision or receipt of any Essential System Service);
(iii) the delivery of electricity into or out of the Network by or for one or more Other Users; or
(iv) any act or omission by or on behalf of an Other User in relation to, or in connection with, a Service on the Network, then ADEWAP will apportion that Pass-Through Amount between User and each such Other User on a basis to be determined by ADEWAP (acting fairly and reasonably).
(c) Without limiting the generality of clause 11.3(a), the following will be deemed to be Pass- Through Amounts:
(i) the Authority Fee;
(ii) the Coordinator Fee; and
(iii) the ISO Fee, payable from time to time by ADEWAP pursuant to the PN Rules.
Pass-Through Amounts. “Pass Through Amounts” shall have the meaning ascribed to it in Section 4.1.4 hereof.