Common use of Variable Usage Charge Clause in Contracts

Variable Usage Charge. For the purposes of paragraph 1, the term Vt means an amount in respect of the Variable Usage Charge in Relevant Year t which is derived from the following formula: 𝑉𝑡 = ∑𝑉𝑖𝑡 • 𝑈𝑉𝑖𝑡 where: Vit means an amount for a type of vehicle i for Relevant Year t, expressed in ▇▇▇▇▇ per Vehicle Mile and rounded to two decimal places, which is derived as follows: (a) in respect of the Relevant Year commencing on 1 April 2019, Vit shall be, in respect of each Vehicle Mile, the appropriate variable usage charge rate set out in (c) below, multiplied by the Initial Indexation Factor; (b) in respect of any Relevant Year t commencing on or after 1 April 2020, Vit shall be, in respect of each Vehicle Mile, the appropriate variable usage charge rate set out in (c) below, multiplied by the phased-in charges indexation adjustment derived from the following formula: = (1 + (𝐶𝑃𝐼𝑡−1−𝐶𝑃𝐼2018) 𝐶𝑃𝐼2018 ) × 𝐼𝑛𝑖𝑡𝑖𝑎𝑙 𝐼𝑛𝑑𝑒𝑥𝑎𝑡𝑖𝑜𝑛 𝐹𝑎𝑐𝑡𝑜𝑟 PCIAt means the phased-in charges indexation adjustment in respect of Relevant Year t; CPIt-1 means the CPI published or determined with respect to the month of November in Relevant Year t-1; CPI2018 means the CPI published or determined with respect to the month of November in 2018, (c) the appropriate variable usage charge rate for the purposes of (a) and (b) above shall be the corresponding variable usage charge rate per Vehicle Mile as set out in the section of the Track Usage Price List entitled “West Coast Railway Company Limited Variable Usage Charge rates (Jacobite)”; UVit means the actual volume of usage (in Vehicle Miles) in Relevant Year t of vehicle type i (referred to in the Track Usage Price List) operated by or on behalf of the Train Operator; and ∑ means the summation across all relevant categories of vehicle types i.