Paragraph 7 I1

Subject to the following provisions of this paragraph, the undertaker must repay to SEW the proper and reasonable expenses reasonably incurred by SEW in, or in connection with, the consideration and approval of plans, inspection, installation, removal, diversion, alteration or protection of any apparatus, retained apparatus or alternative apparatus and the reasonable costs of securing any rights which SEW requires (acting reasonably) in relation to the apparatus or alternative apparatus including to install, access, retain, replace, divert, alter and maintain that apparatus or alternative apparatus. Such repayment to be made within 42 days of receipt of a written demand from SEW.

The value of any apparatus removed by SEW or returned to SEW after removal by the undertaker is to be deducted from any sum payable under sub-paragraph (1), that value being calculated after removal by the undertaker (who will provide reasonable evidence of such value) and agreed between the undertaker and SEW or settled by arbitration in accordance with article 48 (arbitration)

If in accordance with the provisions of this Part of this Schedule—

and the placing of apparatus of that type or capacity or of those dimensions or the placing of apparatus at that depth, as the case may be, is not agreed by the undertaker or, in default of agreement, is not determined by arbitration in accordance with article 48 (arbitration) to be necessary, then, if such placing involves cost in the construction of works under this Part of this Schedule exceeding that which would have been involved if the apparatus placed had been of the existing type, capacity or dimensions, or at the existing depth, as the case may be, the amount which apart from this sub-paragraph would be payable to SEW by virtue of sub-paragraph (1) is to be reduced by the amount of that excess, the amount of that excess being calculated by the undertaker (who will provide reasonable evidence of such amount) and agreed between the undertaker and SEW or settled by arbitration in accordance with article 48 (arbitration).

For the purposes of sub-paragraph (3)—

An amount which, apart from this sub-paragraph, would be payable to SEW in respect of works by virtue of sub-paragraph (1) must, if the works include the placing of apparatus provided in substitution for apparatus placed more than 7 years and 6 months earlier so as to confer on SEW any financial benefit by deferment of the time for renewal of the apparatus in the ordinary course, be reduced by the amount which represents that benefit, the amount being calculated by SEW (who will provide reasonable evidence of such amount) and agreed between the undertaker and SEW or settled by arbitration in accordance with article 48 (arbitration).