Operating cost models have been developed for water / sewage treatment processes, sludge treatment and disposal. The models yield cost estimates built up from works component level and provide a repeatable, auditable method for estimating operational expenditure for above ground assets.
Unit operating costs for each process are estimated for: employment costs; power; materials / consumables; hired / contracted services plus other direct costs. The model assumptions are continually refined with feedback from project participants.
Initial models used to yield operating costs estimates at Utility level, compared with values in OFWAT's June Returns, found very good agreements for these high level sense checks.
The models enable:
- Utility level operating cost estimates.
- Independent, auditable process costs calculated by water, sewage and sludge function.
- Assessing of the impacts of achieving new quality standards on operating costs.
- Benchmarking - both between Utilities and at works and / or processes levels.
- Opex to now be used in appraisal of investment options.