Capital Cost
The one-off cost of purchasing and installing one unit of a Resource. The Installation Expenditure for a Resource is the unit Capital Cost multiplied by the number of Incremental Units. The unit Capital Cost may depend on the number of units installed – see 10.3.26 Resource price lists.
Residual Value
When modelling the depreciation of an asset, its value is normally spread over a period of time, at the end of which the asset is considered to have zero value. However, it may be possible to sell an asset when it is no longer needed: in such cases the price obtained is the residual value of the asset. Depreciation is calculated based on an estimate of what the residual value will be when a resource is removed from the network.
Maintenance Cost
The cost of maintaining one installed unit of a Resource per period (as defined by the Cost Period input). The overall Maintenance Cost for a Resource is the unit maintenance cost multiplied by the number of Installed Units. Unlike Operations Cost, Maintenance Cost is not affected by Resource utilisation.
Churn Cost
The cost of churn associated with the capacity of one unit of a Resource. Each Service using a Resource contributes to the overall Churn Cost for the Resource in proportion to the respective Service Churn Proportions and the capacity used by those Services – see 10.3.2 Churn for more details.
Decommissioning Cost
The one-off cost of removing a unit of a Resource from the network, either at the end of its Physical Lifetime, or through Early Decommissioning. The Decommissioning Cost for a Resource is the unit decommissioning cost multiplied by the number of units removed from the network in a year.