Paragraph 7 CostsI1
England, Wales and Scotland
Subject to the terms of this paragraph, the undertaker must reimburse the licensee for any additional costs.
The licensee must, as soon as reasonably practicable after incurring any additional costs pursuant to sub-paragraph (1) above, serve the undertaker with an itemised invoice or claim for the additional costs.
Within 14 days of receipt of an itemised invoice or claim, the undertaker must—
approve the amount of additional costs specified in the itemised invoice or claim; or
dispute the amount of additional costs specified in the itemised invoice or claim (or that the licensee has not used reasonable endeavours to mitigate or minimise any such additional costs) F1and notify the licensee that the undertaker will (if not resolved amicably pursuant to paragraph 1(2) of Schedule 5 to this Order) refer the matter to arbitration pursuant to paragraph 8 of this Part of this Schedule.
Save where otherwise agreed in writing between the undertaker and the licensee, the undertaker must thereafter pay to the licensee the additional costs within 28 days of approving the amount of additional costs pursuant to sub-paragraph (3)(a) above or final decision and award of additional costs pursuant to arbitration.
The licensee must use reasonable endeavours to mitigate in whole or in part and to minimise any additional costs.
Annotations
Textual amendments
- F1
Sch. 3 Pt. 3 para. 7(3)(b): the paragraph break after “any such additional costs)” is omitted (8.6.2026) by The Morecambe Offshore Windfarm Generation Assets (Correction) Order 2026 (S.I. 2026/608), art. 1, Sch.
Commencement
- I1
Sch. 3 Pt. 3 para. 7 in force at 23.12.2025, see art. 1