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Utility Consulting Solutions

04Chapter 4 · Cost Avoidance

Ten years, modeled honestly.

Start from the proposal's baseline, then move the assumptions and watch the projection respond. Every number here is a modeled projection — not guaranteed savings, NPV, or a whole-hotel bill reduction.

Modeling assumptions

Transparent inputs you can change. These are illustrative, not guarantees.

4%

The proposed UtCS rate escalates by the higher of (CEB escalation − 2 points) and CPI. CPI is a floor, not a cap.

100% of P50

Share of the modeled P50 energy treated as supplied by the UtCS system.

0% / year

Optional annual reduction in delivered energy. Default 0% keeps energy flat.

10-year cumulative cost avoidance

MUR 2.80 million

Sum of yearly CEB-minus-UtCS energy cost, unrounded

Aggregate avoidance vs CEB

22.70%

Across the full 10-year window

CEB escalation (fixed)

9.0%

Benchmark assumption

UtCS escalation (applied)

7.0%

Higher of (CEB − 2 pts) and CPI

Annual energy cost — CEB vs UtCS

Cost of the same energy priced two ways, each year.

CEB cost UtCS cost

Annual cost avoidance

The yearly gap between the two rates.

Positive area is money avoided; below the red line, the UtCS rate exceeds CEB.

Year-by-year projection

Rates to four decimals, money to two. Cumulative totals sum unrounded values.

Ten-year projection of CEB and UtCS energy cost, annual and cumulative cost avoidance, and avoidance percentage per year.
YearCEB rateUtCS rateEnergyCEB costUtCS costAvoidanceCumulative%
Year 18.99007.641590,250MUR 811,347.50MUR 689,645.38MUR 121,702.13MUR 121,702.1315.00%
Year 29.79918.176490,250MUR 884,368.78MUR 737,920.55MUR 146,448.22MUR 268,150.3516.56%
Year 310.68108.748890,250MUR 963,961.96MUR 789,574.99MUR 174,386.97MUR 442,537.3218.09%
Year 411.64239.361290,250MUR 1,050,718.54MUR 844,845.24MUR 205,873.30MUR 648,410.6319.59%
Year 512.690110.016490,250MUR 1,145,283.21MUR 903,984.41MUR 241,298.80MUR 889,709.4321.07%
Year 613.832210.717690,250MUR 1,248,358.70MUR 967,263.31MUR 281,095.38MUR 1,170,804.8222.52%
Year 715.077111.467890,250MUR 1,360,710.98MUR 1,034,971.75MUR 325,739.24MUR 1,496,544.0523.94%
Year 816.434112.270690,250MUR 1,483,174.97MUR 1,107,419.77MUR 375,755.20MUR 1,872,299.2525.33%
Year 917.913113.129590,250MUR 1,616,660.72MUR 1,184,939.15MUR 431,721.57MUR 2,304,020.8226.70%
Year 1019.525314.048690,250MUR 1,762,160.18MUR 1,267,884.89MUR 494,275.29MUR 2,798,296.1128.05%
10-year totalMUR 12,326,745.54MUR 9,528,449.44MUR 2,798,296.11MUR 2,798,296.1122.70%

15% applies at commencement, to system energy

The 15% Monthly Cost Avoidance is the starting position at commencement, on the energy the UtCS system supplies. As the UtCS rate escalates by the higher of (CEB − 2 points) and CPI, the percentage changes year to year and can turn negative when CPI is high.

Proposed escalation rule

The supplied Clause 11.6 describes an annual adjustment by the lesser of the CEB percentage increase or CPI, on 1 May, with at least 60 days’ written notice. This presentation instead uses the higher of (CEB escalation − 2 percentage points) and CPI. The projections implement the proposed formula; the agreement wording must be aligned before execution. Source timing and notice context are retained.

Annual energy arithmetic

The source states 90.25 MWh/year but prints an annual CEB cost of MUR 811,386.16 and annual cost avoidance of MUR 121,707.92. At exactly 90,250 kWh the calculated amounts are MUR 811,347.50 and MUR 121,702.13. The app uses the explicit 90,250 kWh consistently; the source values are kept only as a labeled reconciliation note. The source CEB cost implies ≈ 90,254.30 kWh, which is not treated as an authoritative higher-precision yield.

Not a valuation

These figures are undiscounted cost-avoidance projections. They are not a net present value, an internal rate of return, or a guaranteed saving, and they exclude CEB fixed charges, demand charges and non-substituted energy.