16.4.3  Abatement

(a)  In some jurisdictions, despite the fact that a Service Failure is caused by a Relief Event, government may continue to abate the service fee under the payment mechanism for that Service Failure.  

(b)  In other jurisdictions, the service fee will not be abated for Service Failures caused by a Relief Event,55 except for costs not incurred by the private party during the Relief period and to the extent that the Relief Event or any risk that caused the Relief Event was required by the project agreement to be covered by insurance.

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55  This principle is currently under review in those jurisdictions that adopt this approach (namely Victoria), for events which are controlled or better managed by the private party and for which only time relief (and not money) should be given.  Jurisdictions will issue separate guidance material if any change is made to the current principle.