(1)  If a transmission revenue cap determination allows for an adjustment to the maximum revenues under the determination as a result of the occurrence of a pass-through event or under a performance incentive scheme, that adjustment does not take effect until it has been approved by the Regulator.

(2)  If when considering whether to approve an adjustment the Regulator determines that a pass-through event has not occurred or a standard of performance required for an adjustment has not been reached, the Regulator is to notify Transend of that determination.

(3)  The Regulator is not to approve an adjustment unless he or she is satisfied that the adjustment has been calculated in accordance with the method of calculating that adjustment, or the principles and general manner to be applied in making the adjustment or doing the calculation of the adjustment, specified in the transmission revenue cap determination.

(4)  On approving or refusing to approve an adjustment, the Regulator is to notify Transend of that decision.