2019-12-10 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                            10 DECEMBER 2019


Figure 4 below provides examples of how metered powerheads appear within a holiday park
setting.

Figure 4 – Examples of metered powerheads within a holiday park setting




5.1.1 Financial Cost Benefit Analysis

A financial cost benefit analysis of investment in metered powerheads and the associated
software and infrastructure to support an electricity user pays system for electricity consumption
has been completed. Future cash flows (both costs and revenue) were projected within a variety
of scenarios to assess project feasibility via net present value (NPV) analysis, including
sensibility and sensitivity testing.

Key assumptions underpinning the financial analysis included:

   Investment cost (powerheads, installation, electrical reconfiguration, ongoing maintenance
     and management) for up to 100 powered sites.
   A variety of pricing structure configurations, including electricity user pays ($/kWh) and a
     daily access charge ($/day).
   Anticipated 5% reduction (conservative estimate) in future consumption as a result of
     increased customer awareness.
   Annual maintenance costs of $185 per powerhead.
   Increasing cost of electricity.

The analysis confirms a positive NPV over three years is feasible, based on an installation cost of
$135,000, 5% decrease in electricity consumption, annual maintenance costs of $15,000 and
customers paying a daily charge for all power usage.




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