Capital Programme Team Options Appraisal Prepared by: Gavin Ridgewell Dated: October 2016 \\CWHFS007\vdata\mwf\Live\North Area\\3.0 MW - Gate 2\2016 October - T264 Options Appraisal Report.doc\ \
Index 1 Executive Summary & Comparison Table 2 Introduction 3 Options Appraisal Overview 4 Options Appraisal Detail 5 Conclusion Appendices: Appendix 1 Cost Breakdowns Appendix 2 Whole Life Cost Breakdowns Appendix 3 Cost assumptions Prepared By Gavin Ridgewell Msc Authorised for Issue: Date: For and on behalf of CityWest Homes 1 Executive Summary \\CWHFS007\vdata\mwf\Live\North Area\\3.0 MW - Gate 2\2016 October - T264 Options Appraisal Report.doc\ \
1.1 This report presents the five most viable communal heating and hot water system replacement options for Torridon House. 1.2 CWH recommends that the communal heating system is replaced as proposed by the TPE feasibility report produced in 2013. The design includes replacement in-flat heating and hot water services together with the communal ventilation fans. The blocks will continue to be served by the existing gas boilers that were installed in 2003. 1.3 The CWH recommendation is informed by the following data and outcomes: a reduction in running costs compared with the existing system a whole life cycle calculation confirms the proposed design is the most cost effective option over a 30 year period the proposed design will reduce the risk of legionella improve in dwelling heating and hot water control increase the water pressure improved comfort with the installation of radiators and thermostatic radiator valve s 1.4 The Options Appraisal summary is presented as: Works cost ( ) 30 Year Cost ( ) Option A Radiators & HWS Cylinders 1,112,167 3,318,878 Option B HIU 1,559,072 3,572,851 Option C - Individual boilers 1,503,543 3,643,222 Option D - Electric Heating 1,571,161 4,578,323 Option E Do nothing for 10 years 1,582,684 3,789,396 1.5 CWH s recommendation is to replace the existing system with Option A, the replacement of the warm air units with radiators, replacement of the hot water cylinders with new modern energy efficient units. Additional benefits of the system are, Installation of energy meters on each riser so residents can see their consumption and energy use in line with Heat metering requirements 2014. Lower running and energy costs. Reduction of ongoing maintenance costs Removal of any risk of Legionella in dwellings by removing the stored indwelling cold water. \\CWHFS007\vdata\mwf\Live\North Area\\3.0 MW - Gate 2\2016 October - T264 Options Appraisal Report.doc\ \
Improved heating system to a modern standard providing heating direct to each room. Improved heating control with a wall mounted timer programmer/room thermostat and thermostatic regulating valves. Improved water pressure throughout the block \\CWHFS007\vdata\mwf\Live\North Area\\3.0 MW - Gate 2\2016 October - T264 Options Appraisal Report.doc\ \
2 Introduction 2.1 Torridon House is a nine story block of flats and maisonettes located on the outskirts of Maida Vale in NW6. There are 98 properties and was constructed circa 1967. The boiler plant room is on the ground floor and houses the heating boilers and associated equipment. 2.2 All the properties are currently provided with in flat heating and hot water services from a communal system, which operates from gas fired central boilers. 2.3 The pipe work from the plant room runs up to the roof where it distributes across and down into the properties and branches off into each flat to serve the existing warm air units and hot water storage units. The system is approximately 40 years old and is at the end of its serviceable life. 2.4 The replacement of the in flat systems will provide the new system with a life span of a minimum of 25 years. Protective devices will be installed to safeguard against and prevent the spread of fire and / or smoke through the new (and all redundant) pipe work runs. All of these proposed measures will reduce future maintenance issues, costs and the risk of fire. 2.5 The condition survey has identified that the entire heating system including the in flat system is now at the end of their useful life. The warm are system does not provide direct heating into the bedrooms or the bathrooms, does not operate efficiently or effectively and is not deemed for a modern day domestic heating installation. 2.6 The report also states that the HWS cylinders are at the end of their life and require replacement. If left in poor condition the units are prone to leaking with resulting water damage to the adjoining properties; which in turn generates costs for CWH for carrying out remedial works and handling the costs of insurance claims from residents. 2.7 A condition report was carried out by an external chartered consultant TPE in 2013 and recommended that the heating and hot water systems together with their component parts be replaced: to include, plantroom control system, heating and hot water risers, in flat hot water storage cylinders, warm air units, pipework and control valves. Also recommending the installation of booster pumps on the cold water system. 2.8 In support of the works the Chartered Institute of Building Service Engineers recommend that these assets be replaced after a service life of between 20 to 25 years whereas these assets Torridon House are now generally circa 40 years old. \\CWHFS007\vdata\mwf\Live\North Area\\3.0 MW - Gate 2\2016 October - T264 Options Appraisal Report.doc\ \
3 Options Appraisal Overview 3.1 CWH has researched and analysed both historical energy consumption records and plant performance data and also investigated alternative methodologies so as to explore the feasibility and practicalities of providing alternative heating options for Torridon House. 3.2 The outcome this that this report provides a detailed review of the 5 most appropriate engineering technical solutions. These are: A. Radiators and HWS cylinder (Tendered T264 scheme) B. Heat Interface Units C. Individual gas fired boilers D. Electric Night storage heaters E. Do nothing 3.3 A summary of the source data and general assumptions used in the analysis are: a) the options in this report have been assessed and costed using a combination of: prices and rates from the T264 pre tender estimate (PTE) tender return, current CWH Maintenance term contractor schedules of rates and the running costs for electric heating and hot water supplies as provided by the Energy team b) the Capital cost of each Option comprises of: PTE cost (including equipment, labour, overheads etc.), external consultant fees and CWH management overheads c) the implementation of Options C and D will require to approval by WCC planning department due to theses works contravening WCC district heating policy, increasing the Carbon footprint of the block. The above will incur additional delays and costs that have not been included within the report. d) that changing the energy status of the buildings (Part L), (typically from a gas supply to an electricity supply), will necessitate an additional work requirement to seek permission to do so and to implement consequential improvement measures to offset any increase in the carbon footprint of the blocks, external cladding, etc. e) it is WCC Planning Policy to maintain and sustain existing communal heating and hot water installations f) alterations to the existing system (changing from communal heating to individual heating) will further incur costs for altering the leases on the estate to release WCC from the landlords obligation to provide heating and hot water to the block. \\CWHFS007\vdata\mwf\Live\North Area\\3.0 MW - Gate 2\2016 October - T264 Options Appraisal Report.doc\ \
4 Options Appraisal Detail 4.1 Option A Replace the existing system with Radiators and HWS cylinders. This is the scheme to be tendered. The core work elements are: Replace existing hot water cylinders with new energy efficient hot water cylinders Installation of booster pumps Change from constant volume system to a more energy efficient variable volume system Replace existing warm air units with radiators, valves and controls Replace the central controls system Capital cost 1,112,167 Whole life cost summary (over a 30 year period) 3,318,878 4.2 Option B Replace the existing system with heat interface units includes for the following: Replace existing hot water cylinders with new heat interface units Replace existing heating and cold water distribution pipework external to the building Replace existing warm air units with radiators, valves and controls Capital cost 1,559,072 Whole life cost summary (over a 30 year period) 3,572,851 4.3 Option C Replace system with local individual gas boilers includes for the following: Replace existing hot water cylinders with new gas fired boilers Removal/decommissioning of existing heating pipework and central boiler plant room. Replace existing warm air units with radiators, valves and controls Installation of boiler flues Upgrading / Replacement / modification of the existing gas pipework infrastructure Capital cost 1,503,543 Whole life cost summary (over a 30 year period) 3,643,222 \\CWHFS007\vdata\mwf\Live\North Area\\3.0 MW - Gate 2\2016 October - T264 Options Appraisal Report.doc\ \
4.4 Option D Replace existing system with night storage heaters Replace existing hot water cylinders with new electricity fed hot water cylinder Removal/decommissioning of existing heating pipework and central boiler plant room. Replace existing warm air units with electric night storage heaters Installation of new wiring and lateral mains Capital cost 1,571,161 Whole life cost summary (over a 30 year period) 4,578,323 4.5 Option E Do nothing (for 10 years) Carry out no major works and continue to use, maintain and repair the existing system for 10 years. Capital cost to carry out the works in 10 years 1,582,684 Whole life cost summary (over a 30 year period) 3,789,396 Repairs History It should be noted that the central boilers only were last replaced in 2003 due to the plant failing as a consequence of the asset expiring. The project was 10079 and 207,605 was spent on the boiler plant. There has been 138,359 spent on PPM and repairs over the past 8 years. Risks Torridon House is similar to other district heating systems across Westminster. There is significant evidence from other systems that a do nothing approach whereby the existing equipment is continued to be used, that the existing equipment could fail and cause water damage. The cost of replacement has been included in the calculations. \\CWHFS007\vdata\mwf\Live\North Area\\3.0 MW - Gate 2\2016 October - T264 Options Appraisal Report.doc\ \
2019-2013 Repairs Cost History Description No. of Repairs - Visits Cost 2003 Boiler replacement Cost 1 207,605 Repairs 2008 2011 unknown 68,428 Repairs 2012-2016 232 69,931 Total repairs cost over 8 years 138,359 \\CWHFS007\vdata\mwf\Live\North Area\\3.0 MW - Gate 2\2016 October - T264 Options Appraisal Report.doc\ \
5.0 Conclusion CWH s recommendation is that the communal heating system is replaced to safe guard the buildings infrastructure for the residents and the council for the next 30 years. CWH recommend the replacement of equipment and associated components which have reached the end of their serviceable design lives, including the replacement of the warm air units with radiators, replacement of the hot water cylinders and controls of the heating and hot water supplies to each dwelling and the installation of new in flat heating and hot water controls. Additional benefits of the system are, Installation of energy meters on each riser so residents can see their consumption and energy use in line with Heat metering requirements 2014. Lower running and energy costs. Reduction of ongoing maintenance costs Removal of any risk of Legionella in dwellings by removing the stored indwelling cold water. Improved heating system to a modern standard providing heating direct to each room. Improved heating system to a modern standard providing heating direct to each room. Improved heating control with a wall mounted timer programmer/room thermostat and thermostatic regulating valves. Improved water pressure throughout the block \\CWHFS007\vdata\mwf\Live\North Area\\3.0 MW - Gate 2\2016 October - T264 Options Appraisal Report.doc\ \
Appendix 1 Cost Breakdowns Option A Replace existing system with a Heat Interface Unit System (Tendered Scheme) includes for the following Option B Replace the existing system with a Like for Like system Option C Replace system with local individual gas boilers Option D Replace existing system with night storage heaters Option E Do nothing (for 10 years) \\CWHFS007\vdata\mwf\Live\North Area\\3.0 MW - Gate 2\2016 October - T264 Options Appraisal Report.doc\ \
Option A Replace existing system with a Heat Interface Unit System (Tendered Scheme) includes for the following Option A - HWS Cylinder and Radiators Note 1: The external consultant (TPE) has confirmed via their report (2013) that the communal heating and hot water systems serving the building in a poor condition, circa 40 years old and beyond the life expectancy. Description Cost ( ) Notes Works Costs Note: All the figures below are based on the pre tender estimate. Replacement of the existing communal heating pipework 79,720 The roof section of pipework to be replaced only Replace hot water cylinder with Mega flow unit 215,306 Other in flat works Replacement of radiators and radiator valves In flat Builders Work 17,000 Are required as a result of the works. These works include, test and commissioning, temporary services, surveys etc. 162,680 Includes radiators and pipework 24,500 Are required as a result of the works. These works include, painting, fire stopping, general decorations and BWIC with the new cylinder. In flat Electrical Alterations 57,060 Works required and associated with installing the new cylinder and heating. Electrical works external to flats 31,000 Energy meters 53,121 Booster pump works Boiler Room works 19,864 The booster pumps are required to provide a good level of water pressure through the block. 94,910 Are required as a result of the works. These works include, pre-commissioning and flushing, pumps and BMS modifications. Asset Tagging 26,133 Sub Total 781,294 Contractors Prelims & OHP 17% 128,914 Total works Costs 910,208 Contingency 10% 91,021 Sub Total 1,001,228 CWH Project Fees 7.5% 68,266 CWH Communication Fees 1% 9,102 Other on costs (Design Fees, Legal Fees etc.) 33,571 Total Project Cost 1,112,167 \\CWHFS007\vdata\mwf\Live\North Area\\3.0 MW - Gate 2\2016 October - T264 Options Appraisal Report.doc\ \
Option B Replace the existing system with a Like for Like system Option B - HIU option Note 1: The external consultant (TPE) has confirmed via their report (2013) that the communal heating and hot water systems serving the building in a poor condition, circa 40 years old and beyond the life expectancy. Description Cost ( ) Notes Works Costs Replacement of the existing communal heating pipework 395,699 Pipework to be routed on the external façade of the building. Replace hot water cylinder with HIU 223,048 Other in flat works 17,000 Are required as a result of the works. These works include, test and commissioning, temporary services, surveys etc. Replacement of radiators and radiator valves 162,680 Includes radiators and pipework In flat Builders Work 24,500 Are required as a result of the works. These works include, painting, fire stopping, general decorations and BWIC with the new cylinder. In flat Electrical Alterations 57,060 Works required and associated with installing the new HIU. Electrical works external to flats 31,000 Energy meters 53,121 Booster pump works 19,864 The booster pumps are required to provide a good level of water pressure through the block. Boiler Room works 94,910 Asset Tagging 26,133 Sub Total 1,105,015 Are required as a result of the works. These works include, pre-commissioning and flushing, pumps and BMS modifications. Contractors Prelims & OHP 17% 182,327 Total works Costs 1,287,342 Contingency 10% 128,734 Sub Total 1,416,077 CWH Project Fees 7.5 % 96,551 CWH Communication Fees 1% 12,873 Other on costs (Design Fees, Legal Fees etc.) 33,571 Total Project Cost 1,559,072 \\CWHFS007\vdata\mwf\Live\North Area\\3.0 MW - Gate 2\2016 October - T264 Options Appraisal Report.doc\ \
Option C Replace system with local individual gas boilers Option C - Individual Gas Boilers Note 1: The external consultant (TPE) has confirmed via their report (2013) that the communal heating and hot water systems serving the building in a poor condition, circa 40 years old and beyond the life expectancy. Description Cost ( ) Notes Works Costs Strip out of existing heat distribution pipework. Excluding risers 25,000 Individual Boilers - 98 No 245,000 The supply and installation of the gas boilers complete with flue. This is based on 2,500 per dwelling. Other in flat works 17,000 Are required as a result of the works. These works include, new pipework, test and commissioning, temporary services, surveys etc. Replacement of radiators and radiator valves 162,680 The same amount of radiators required as the PTE ed HIU option. In flat Builders Work 127,400 Required as a result of the works. These works include, painting, fire stopping, general decorations and BWIC with the boiler. More modifications will also be needed in the kitchen as a result of installing the gas boiler. This will included BWIC with the new gas pipe, new boiler flue and moving/altering any existing kitchen units. Assumed 1,300 per flat based on the amount of modifications required. In flat Electrical Alterations 57,060 Works required and associated with installing the new boiler. Booster pump works 19,864 Same amount as the option A figure. Gas pipework alterations, testing & certification 53,900 Cost is based on 550 per flat Boiler Flue BWIC with external façade 34,300 Cost to cut and make good glass/external façade. Assumed to be 350 per property Sub Total 742,204 Contractors Prelims 30% 222,661 Higher prelims due to the extended contract (18 months rather than 12) due to the gas works. Some residents may not have gas meters. Sub Total 964,865 Contractors OHP 10% 96,487 Total works Costs 1,061,352 Contingency 10% 106,135 Sub Total 1,167,487 CWH Project Fees 7.5% 79,601 CWH Communication Fees 1% 10,614 Other on costs (Design Fees, Legal Fees etc.) 33,571 Other on costs (Design Fees, Legal Fees, comms etc.) 20% 212,270 Required to go through ballet process and to change the leases if successful. More resident comms as some residents do not have a gas meter. Total Project Cost 1,503,543 \\CWHFS007\vdata\mwf\Live\North Area\\3.0 MW - Gate 2\2016 October - T264 Options Appraisal Report.doc\ \
Option D Replace existing system with electric night storage heaters Option D - Electric Heating Note 1: The external consultant (TPE) has confirmed via their report (2013) that the communal heating and hot water systems serving the building in a poor condition, circa 40 years old and beyond the life expectancy. Description Cost ( ) Notes Works Costs Strip out of existing heat distribution pipework. 25,000 In flat electrical Works 55,370 565 per unit to replace the distribution boards, new meters, trunking and cables. Electric Storage Heaters 126,224 1,288 is based on the radiator schedule In flat Builders Work 49,000 Required as a result of the works. These works include, painting, fire stopping, general decorations. New cables will need to be run around the flat and concealed. Assumed to be 100% than PTE cost. New electric hot water cylinders 215,306 Cost is based on the PTE figure for the unit served from the communal boilers. The unit will be the same spec but shall include a electrical element rther than a heating coil. Booster pump works 19,864 Same amount as the option A figure. Lateral Mains Upgrade 335,258 Cost based on the recent work carried out for the T118 scheme. 3,421 per property. Sub Total 826,022 Contractors Prelims & OHP 17% 142,076 Sub Total 968,098 Total works Costs 1,110,174 Contingency 10% 111,017 Sub Total 1,221,191 CWH Project Fees 7.5% 83,263 CWH Communication Fees 1% 11,102 Other on costs (Design Fees, Legal Fees etc.) 33,571 Other on costs (Design Fees, Legal Fees, comms etc.) 20% 222,035 Required to go through ballet process and to change the leases if successful. More resident comms as some residents do not have a gas meter. Total Project Cost 1,571,161 \\CWHFS007\vdata\mwf\Live\North Area\\3.0 MW - Gate 2\2016 October - T264 Options Appraisal Report.doc\ \
Option E Do nothing (for 10 years) Description Tender Cost ( ) Cost + 15% ( ) Notes Works Costs Replacement of the existing communal heating pipework 79,720 91,678 The roof section of pipework to be replaced only Replace hot water cylinder with Mega flow unit 215,306 247,602 Other in flat works 17,000 19,550 Are required as a result of the works. These works include, test and commissioning, temporary services, surveys etc. Replacement of radiators and radiator valves 162,680 187,082 Includes radiators and pipework In flat Builders Work 24,500 28,175 Are required as a result of the works. These works include, painting, fire stopping, general decorations and BWIC with the new cylinder. In flat Electrical Alterations 57,060 65,619 Works required and associated with installing the new cylinder and heating. Electrical works external to flats 31,000 35,650 Energy meters 53,121 61,089 Booster pump works 19,864 22,844 The booster pumps are required to provide a good level of water pressure through the block. Boiler Room works 94,910 109,147 Are required as a result of the works. These works include, pre-commissioning and flushing, pumps and BMS modifications. Asset Tagging 26,133 30,053 Sub Total 781,294 868,435 Contractors Prelims 17% 128,914 148,251 Total works Costs 910,208 1,016,686 Contingecy 10% 91,021 101,669 Sub Total 1,001,228 1,118,354 CWH Project Fees 7.50% 68,266 763 CWH Communication Fees 1% 9,102 10,467 Other on costs (Design Fees, Legal Fees etc) 33,571 38,607 + 30000 PPM & repairs cost for year one and then 7% year on year for 10 years 414,493 Cost taken from repairs cost in 2016. Total Project Cost 1,112,167 1,582,684 \\CWHFS007\vdata\mwf\Live\North Area\\3.0 MW - Gate 2\2016 October - T264 Options Appraisal Report.doc\ \
Appendix 2 Whole Life Cost Breakdowns Option A Tariff Cost ( ) Notes Capital Cost 1,112,167 Planned Preventative Maintenance & Repairs Contract 373,389 Based on 9,204 a year which are the current price/rates. Plus 2% year on year increase for inflation. Reactive Repair Costs Running Cost Replacement of Radiators Replacement of HWS cylinders Replacment of communal boilers 132,878 Based on 2000 for the first year + 5% year on year. Cost includes On-Costs 1,114,854 Basd on gas price of 2.52 p/kwh and annual gas use of 1,474,675 kwh. ( 37,161 x 30 years = 1,114,854). 162,680 Allowance to replace at year 20 215,306 Allowance to replace at year 20 207,605 Allowance to replace at year 20 Total Project Cost 3,318,878 Note: PPM Maintenance Cost - 557 per month (inclusive repairs contract) & 630 x 4 per year (PPM) = 9,204 \\CWHFS007\vdata\mwf\Live\North Area\\3.0 MW - Gate 2\2016 October - T264 Options Appraisal Report.doc\ \
Option B Tariff Cost ( ) Notes Capital Cost 1,559,072 Planned Preventative Maintenance & Repairs Contract 373,389 Based on 9,204 a year which are the current price/rates. Plus 2% year on year increase for inflation. Reactive Repair Costs Running Cost Replacement of Radiators Replacement of HIU units Replacment of communal boilers 132,878 Based on 2000 for the first year + 5% year on year. Cost includes On-Costs 914,180 Basd on gas price of 2.52 p/kwh and annual gas use of 1,474,675 kwh. ( 37,161 x 30 years = 1,114,854). Note 2 162,680 Allowance to replace at year 20 223,048 Allowance to replace at year 20 207,605 Allowance to replace at year 20 Total Project Cost 3,572,851 Note 1: PPM Maintenance Cost - 557 per month (inclusive repairs contract) & 630 x 4 per year (PPM) = 9,204 Note 2: Running Cost is approx 18% less than option A. Therefore 914,180 \\CWHFS007\vdata\mwf\Live\North Area\\3.0 MW - Gate 2\2016 October - T264 Options Appraisal Report.doc\ \
Option C Individual Gas Boiler Tariff Cost ( ) Notes Capital Cost 1,167,487 Planned Preventative Maintenance & Repairs Contract 540,083 Based on 13,313 a year. Plus 2% year on year increase for inflation. Reactive Repair Costs Running Cost Replacement of boilers Replacement of Radiators 199,317 Based on 3000 for the first year + 5% year on year. Cost includes On-Costs. Note 2 1,083,656 Basd on gas price of 3.24 p/kwh and annual gas use of 800,000 kwh. Plus 29.97.1p standing charge per day. 490,000 Allowance to replace boilers at year 15 & 30 162,680 Allowance to replace radiators at year 20 Total Project Cost 3,643,222 Note 1: PPM Maintenance Cost - 5.58 per month (inclusive contract) & 68.89 per property per year (gas test) = 135.85 Note 2: Cost is 50% more than option A & B as there will be more in flat components to fail. \\CWHFS007\vdata\mwf\Live\North Area\\3.0 MW - Gate 2\2016 October - T264 Options Appraisal Report.doc\ \
Option D Electric Heating Option D - Whole Life Cost (30 year period) Tariff Cost ( ) Notes Capital Cost Planned Preventative Maintenance & Repairs Contract 1,571,161 TBC Reactive Repair Costs 39,863 Based on 600 for the first year + 5% year on year. Cost includes On-Costs Running Cost - Heating 1,936,166 Based on elec price of 7 p/kwh, 8 kw total load per flat and being on 8 hours a day for 21 weeks. 504.21 per year/per flat Running Cost - Hot Water 563,378 Based on elec price of 7 p/kwh, 3kw load and being on 2.5 hours a day. 191.10 per year. Replacement of heaters 252,448 Allowance to replace heaters at year 15 & 30 Replacement of HWS Cylinder 215,306 Allowance to replace heaters at year 25 Total Project Cost 4,578,323 \\CWHFS007\vdata\mwf\Live\North Area\\3.0 MW - Gate 2\2016 October - T264 Options Appraisal Report.doc\ \
Option E Do nothing Option E - Whole Life Cost (30 year period) Tariff Cost ( ) Notes Capital Cost 1,582,684 Planned Preventative Maintenance & Repairs Contract 373,389 Based on 9,204 a year which are the current price/rates. Plus 2% year on year increase for inflation. Reactive Repair Costs Running Cost Replacement of Radiators Replacement of HWS cylinders Replacment of communal boilers 132,878 Based on 2000 for the first year + 5% year on year. Cost includes On-Costs 1,114,854 Basd on gas price of 2.52 p/kwh and annual gas use of 1,474,675 kwh. ( 37,161 x 30 years = 1,114,854). 162,680 Allowance to replace at year 20 215,306 Allowance to replace at year 20 207,605 Allowance to replace at year 20 Total Project Cost 3,789,396 Note: PPM Maintenance Cost - 557 per month (inclusive repairs contract) & 630 x 4 per year (PPM) = 9,204 \\CWHFS007\vdata\mwf\Live\North Area\\3.0 MW - Gate 2\2016 October - T264 Options Appraisal Report.doc\ \
Appendix 3: Cost assumptions The whole life costs include all installation, maintenance, fuel costs and replacement of components should they be required for a 25 year period. Energy Tariffs The following costs for energy have been used. Communal Gas 2.52p kwh. Information provided from CWH metering department. Individual Gas 3.24p kwh plus 29.97 pence per day standing charge. This price is based on the current market rate from June 2017. On Peak Electrical 15p kwh. This price is based on the current market rate from June 2017. Off Peak Electricity - 7p kwh. This price is based on the current market rate from June 2017. Note 1: - For the purpose of this report is has been assumed the cost for energy will stay the same for the whole life cost calculation. Note 2:- The electrical running cost has been benchmarked against CWH Dwellings actual electrical utility bill for similar properties. Maintenance & Repairs Contract Costs Costs have been provided from the maintenance team and are based on the current term contract and rates. For the purpose of this report it has been assumed that these rates will increase by 2% year on year. Reactive Repair Costs Costs have been provided from the maintenance team on the past 4 years and a notional figure assumed for the purpose of this report. It has also been assumed that these rates will increase by a given percentage year on year for each system. \\CWHFS007\vdata\mwf\Live\North Area\\3.0 MW - Gate 2\2016 October - T264 Options Appraisal Report.doc\ \