CHAPTER V U.K. PRICING OF BUNDLED CAPACITY AND CAPACITY AT VIRTUAL INTERCONNECTION POINTS

Article 22 U.K. Pricing of capacity at a virtual interconnection point

1. The reserve price for an unbundled standard capacity product offered at a virtual interconnection point shall be calculated in accordance with either of the following approaches:

(a) calculated on the basis of the reference price, where the applied reference price methodology allows for taking into account the established virtual interconnection point;

(b) equal to the weighted average of the reserve prices, where such average is calculated on the basis of the reference prices for each interconnection point contributing to such virtual interconnection point, where the applied reference price methodology does not allow for taking into account the established virtual interconnection point, in accordance with the following formula:

Where:

• (b) P_{st, VIP} is the reserve price for a given unbundled standard capacity product at the virtual interconnection point;

• i is an interconnection point contributing to the virtual interconnection point;

• n is the number of interconnection points contributing to the virtual interconnection point;

• P_{st, i} is the reserve price for a given unbundled standard capacity product at interconnection point i;

• CAP_i is technical capacity or forecasted contracted capacity, as relevant, at interconnection point i.

2. The reserve price for a bundled standard capacity product offered at a virtual interconnection point shall be calculated as set out in Article 21(1).