PRT: valuation of non-arm's length disposals and appropriations - gas - re-opening an election - new price formula
In each case where a valid notice of termination is given either by the Board or by the company, the parties to the election may specify a new price formula and if the Board is satisfied the new formula may be accepted and the election then continues in force. The Board may give notice requiring further information and the parties may appeal against the Board’s refusal to accept the new price formula.
The criteria to be applied in considering a new formula are laid down in the legislation. In the case of a market value ceasing to be readily ascertainable (FA82\SCH18\PARA5) the Board shall accept the new price formula if satisfied that it provides for readily ascertainable market values which correspond, so far as practicable, with those which were intended to be provided for under the original price formula.
In the case of a price formula ceasing to give realistic market values where the election relates to ethane for petrochemical use (FA82\SCH18\PARA6), the Board must consider the matter as if the new price formula were specified in an election made at the time the notice of termination is given.
In the case of a price formula ceasing to give realistic market values where the election relates to gases other than ethane for petrochemical use (FA82\SCH18\PARA6) or in the case of a price formula no longer appropriate to pattern of supply (FA82\SCH18\PARA6A), the Board must consider the matter as if the new price formula had been specified in, and at the time of, the election and as if the circumstances giving rise to the new price formula had been in contemplation at that time.