Tariff calculation Sample Clauses
The Tariff Calculation clause defines how fees, rates, or charges are determined under an agreement. It typically outlines the formula, variables, or reference sources used to calculate the applicable tariffs, such as basing charges on usage, time periods, or published rate schedules. This clause ensures both parties understand how costs will be assessed, promoting transparency and reducing disputes over billing.
Tariff calculation. The final tariff paid by the individual Shippers shall be derived from a tariff methodology. In formulating the tariff methodology, and therefore the final tariff, the following factors and objectives shall be observed:
a. recovery of efficiently incurred costs, including appropriate return on investment; facilitate efficient gas trade and competition while at the same time avoiding cross-subsidies between Shippers; promote efficient use of the network and provide for appropriate incentives on new investments;
b. taking into account the amount of capacity contracted for by Shippers which shall reflect the duration of Transportation Contracts, the load factor, the distance of transportation (expressed in EUR / ((Nm³(0°C)/h)*km) / y.), the capital investment per capacity unit and volumes etc.;
c. that reverse flows shall be defined by reference to the direction of the predominant physical flows in the Nabucco Pipeline System. In case of Contractual Congestion, specific tariffs shall be applied for reverse flows; Nabucco International Company may not adopt any charging principles and/or tariff structures that in any way restrict market liquidity or distort the market or trading across borders of different Transmission System Operator systems or hamper system enhancements and integrity of any system to which the Nabucco Pipeline System is connected.