Document ID: chunk:federal_register_of_legislation:F2020C00877:reg:72:p1
Version: federal_register_of_legislation:F2020C00877
Segment Type: reg
Provision Reference: reg 72 (pt 1/2)
Character Range: 97565–100196

72  Calculation of maximum general termination fee
 (1) For the purposes of subrules 71(6) and (7) and 74(6), the maximum amount for a general termination fee is the lesser of the following:
 (a) the amount calculated in accordance with subrule (2);
 (b) if the fee for the termination or surrender of a right of access or a part of a right of access is provided for in a contract or arrangement between the operator and the holder of the right—the fee determined in accordance with the contract.
Note: The fee may be lower than the maximum calculated in accordance with this rule.
 (2) For the purposes of paragraph (1)(a), the amount is to be determined in accordance with the formula:
where:
A is the sum of the amounts, for a full financial year, of:
 (a) the amount of each infrastructure charge payable per unit of water delivery right held multiplied by the number of units of water delivery right being terminated or surrendered; and
 (b) the amount of each infrastructure charge payable per unit of water drainage right held multiplied by the number of units of water drainage right being terminated or surrendered.
B relates to dedicated infrastructure that is used exclusively by the terminating customer and will no longer be used by the customer after the termination or surrender, and is:
 (a) if there is no separate charge for that infrastructure—zero; and
 (b) if there is a separate charge for that infrastructure—the lesser of:
 (i) 10 × C; and
 (ii) D;
  where:
  C is the amount of the separate charge for that infrastructure, for a full financial year.
  D is a reasonable estimate of the total cost of the dedicated infrastructure, net of a reasonable estimate of any contribution towards that cost made by the terminating customer, whether via direct contribution (for example, a lump sum payment) or via the payment of the separate infrastructure charge.
Note: B is zero unless the infrastructure operator levies a separate infrastructure charge on a customer for infrastructure that is used exclusively by the terminating customer. Because X is a maximum, B need not be calculated if the operator does not wish to levy a fee greater than M × A.
M, the termination fee multiple, is:
 (a) if the infrastructure operator does not allow for the trade of a water delivery right of the kind applicable to the right of access that the customer wishes to terminate—1; or
 (b) otherwise—10.
X is the amount for paragraph (1)(a).
 (3) When calculating A, C and D, the following must be excluded:
 (a) any amount in respect of a service for the storage of water;
 (b) any amount of GST;
 (c) any charge that reflects