Regulatory
Water Reports
Operating Cost Implications of Capital Investment
Price: £400
Ref: 08/RG/07/14
ISBN: 1 84057 490 9
Operating costs are one of the potentailly significant cost categories that need to be taken into consideration when estimating the whole life cost (WLC) of investments. Robust estimates are required in order to identify least cost long-term options and to assess the trade-offs between capital and operating costs.
This project developed a best practice appraoch to forecasting operating expenditure (opex) arising from capital expenditure (capex). The report also provides detailed guidance on how to develop an opex forecast using a range of top down and bottom up methods.
To facilitate and promote the use of best practice by water companies an excel based tool was developed to assist in the application of the methodology. Once Company specific operating unit cost data have been entered into a central database the tool can be used to forecast opex by cost category. It has allowances for asset utilisation, deterioration and different inflation indices. A user guide and examples are provided in the accompanying report (08/RG/07/15) for practitioners.
Both reports sold as a set for £400
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