Article 7 Recalculation factor — Railtrack PLC and the British Railways Board

(1)

This article applies to the English railway hereditament and the Welsh railway hereditament occupied by the British Railways Board and to the English railway hereditament and the Welsh railway hereditament occupied by Railtrack PLC.

(2)

Where in relation to any year and any hereditament to which this article applies the figure calculated in accordance with the formula—

\frac{2P + F}{3}

is less than 0.05 and greater than 0.05, the recalculation factor applicable to that hereditament—

(a)

in the first such year shall be 0, and

(b)

in any subsequent such year, shall be the recalculation factor applicable in accordance with this article in the relevant preceding year.

(3)

Where the figure calculated in accordance with paragraph (2) is either—

(a)

equal to or greater than 0.05, or

(b)

equal to or less than 0.05,

the recalculation factor applicable to that hereditament in that year shall be calculated in accordance with the formula—

\frac{T (2P + F)}{9.}

(4)

In relation to any hereditament to which this article applies and any year beginning after the year in which paragraph (3) first applies, paragraph (2) shall apply as if, in calculating F and P in accordance with the formula specified in article 6(1), for J and G respectively there were substituted K and H, where—

K is a number equal to the value applicable to j in the last foregoing year in which the applicable recalculation factor for that hereditament was determined under paragraph (3), and
H is a number equal to that determined as g for that hereditament in that year.