STEM help / Data dialogs

Resource / Costs

In this dialog, you enter all the costs associated with a Resource. You can either:

  • define spot-values for the Calibration Period, which are linked to per-Resource and global cost trends (unless the input Use Global Trends is set to No)
  • input the costs as time series in their own right, typically leaving per-Resource or global cost trends as constant
  • (for Capital Costs) define a spot-value for the Calibration Period, linked to one or more Cost Indices.

The currency unit will be that selected in the Financial Data dialog, if one is selected.

Fixed Assets

Capital Cost

The capital cost of one unit of a Resource in the Calibration Period. Resource capital values are written down according to the Financial Lifetime and Depreciation Rate.

For a consumable resource, capital cost is the cost of purchasing one unit of stock which has a non-zero shelf life.

Default: Constant {0.0}.

Residual Value

The price obtained for a Resource if it is possible to sell the asset when it is no longer needed. The used or scrap value of an asset should be modelled as residual value.

Default: 0.0.

Maintenance Cost

The cost of maintaining one unit of a Resource in its Calibration Period. More generally, the cost for a year or a quarter or a month according to the Cost Period input. Unlike Operations Cost, Maintenance Cost is not affected by the Resource utilisation, i.e., it is charged even if the Resource is not used.

For a consumable resource, maintenance cost is the cost of using one unit, rounded up to a full unit, and generated in the period in which the capacity is installed.

Default: 0.0.

Churn Cost

The cost of churn per unit of a Resource in the Calibration Period, if the Churn Mode is Normal or Inflate Demand. It is not recommended to use this input when the Churn Mode is Inflate Operations Costs, as the cost of churn is then modelled through the Operations Cost.

Default: 0.0.

Decommissioning Cost

The cost of removing a Resource from the network in the Calibration Period. It is better to model used or scrap value as a residual value, otherwise it will occur in the accounts as a negative operating cost.

Default: 0.0.

Leased Facilities

Connection Cost

The one-off non-capitalised cost of leasing a unit of a Resource in the Calibration Period, e.g., the connection cost of a leased line.

Default: 0.0.

Rental Cost

The cost of leasing a unit of a Resource per period (as defined by the Cost Period input) in the Calibration Period, e.g., the rental cost of a leased line.

For a consumable resource, rental cost is the cost of using one unit, rounded up to a full unit, and generated in the period in which the capacity is installed.

Default: 0.0.

Usage Cost

The cost of using a Resource per period (as defined by the Cost Period input), in its Calibration Period, charged pro-rata on the basis of the used capacity of the Resource.

For a consumable resource, usage cost is the cost of using one unit, in proportion to its actual usage, and generated in the period when the capacity is used.

Default: 0.0.

Overheads

Operations Cost

The cost of operating a fully-utilised unit of a Resource per period (as defined by the Cost Period input) in its Calibration Period, charged pro-rata on the basis of the used capacity of the Resource.

For a consumable resource, operations cost is the cost of using one unit, in proportion to its actual usage, and generated in the period when the capacity is used.

Default: 0.0.

Units

Global Currency Unit

The unit for all monetary inputs to the model, e.g., DM, Dollars, Pounds, Yen. Either type in a unit or choose from the drop-down list. Currencies are listed alphabetically by full currency name; each name is followed by the appropriate three-letter ISO code(s). For example, Francs is followed by BEF, CHF and FRF. STEM performs no currency conversions, and any changes in a dialog will be applied globally.

The selection has no mathematical effect on the model but the text is used to label the y-axis on results graphs.

Default: none.

Cost Period

Defines a reference period for recurring cost inputs such as Maintenance Cost, Administration Cost or Operations Cost (which are interpreted as cost per cost period, such as EUR per month or USD per annum). This indicates how the cost input should then be scaled in proportion to the length of the current period for calculation.

Default: Year.

Cost-Trends

Calibration Period

The period when various cost input data apply. Results for other years are calculated using the relevant Cost Trends.

For a Resource: all Costs.

For a Service: Administration and Provision Costs.

Default: Y0. Cost and tariff input data apply at the start of the model run.

Use Global Trends

Determines whether global cost trends are used.

Default: Yes.

 

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