Project Appreciation and Objectives
Under the Common Framework for Capital Maintenance Planning, Water Utilities are expected to provide information on whole life costs (WLCs) of intervention options as part of the justification of Business Plan submissions. This is consistent with Ofwat's requirements set out in MD161 "Maintaining Serviceability to Customers". The need to apply common framework principles to business decision-making processes was further reiterated by Ofwat in MD212.
In keeping with these requirements, WRc's successful TR61 capital cost estimating software will be further enhanced to enable estimates of capital and operating costs to be made in a consistent, robust and auditable manner. Furthermore, (with the inclusion of capital maintenance estimates) this tool will also allow full WLC estimates to be made of a range of different treatment works options.
Benefits to Clients
- Independent software tool generating robust, auditable WLC estimates at a treatment works level.
- Invaluable investment planning aid.
The TR61 package will be strengthened and provide a robust WLC tool through:
- Improved data collection on maintenance costs.
- Audit, by an approved body, of a selection of capex data and methodologies for opex estimates to achieve certification for the use of the models in PR09 submissions.
- Access to opex functionality at treatment works level, including capability to edit all key cost drivers.
- Updated key default values of opex models with current information.
- Inclusion of estimates of capital maintenance in Net Present Cost (NPC) calculations, (useful in evaluating two or more alternative processes).
- Inclusion of opex estimates in robust WLC values - enabling utilities to properly select modern equivalent assets to allow true Modern Equivalent Asset Value estimations.
- Estimation of WLC of treatment works to enable robust comparisons of treatment options over time.
- Initial functional specification (to be agreed by participants).
- Interim release (using V8 data).
- Draft Cost Functions.
- TR61 V9 Software Full Version (March 2008).
- Development of capital cost functions, CP172, 2003 - 2006.
- Development of operating cost models, CP209, 2005-2006.
- Waterfowl Whole Life Costing Software - assesses/predicts cost of ownership (and rehabilitation) for groups of distribution mains, 1999.
Duration: 22 months
This project is only available to UK Water Utilities (due to data supply/ownership issues)