Is defined in Section K9.4.
Where a Party fails to pay to the DCC an amount due by way of Charges such that an Event of Default
has occurred, and provided the DCC has complied with its obligations under Section J (Charges) in
respect of the same, the DCC may (where it reasonably considers it appropriate to do so, taking into
account the matters referred to in Section K9.1) determine the Unrecovered Bad Debt Payment
to be paid by every Compliant Party (p) in respect of that Event of Default (e) in one or
more subsequent months (m) of such Regulatory Year (t) as the DCC may determine. shall
be calculated as follows:
Where:
is the number of months in the balance of the Regulatory Year over which the DCC decides it is to
recover the amount owing in respect of the Event of Default
is the amount owing in respect of the Event of Default (e) or such smaller amount as DCC decides
to recover over the remainder of the Regulatory Year (t)
is the share of the debt owing in respect of the Event of Default (e) to be paid by each Compliant
Party (p), which is to be calculated as follows.
where is the total amount paid or payable by way of Charges by each Compliant Party (p) in respect of
the 12 months preceding the month in respect of which the Event of Default (e) occurred
represents a sum over all Compliant Parties for the Event of Default.