(Solution) An investor owns a series of properties in both the United Kingdom and Bulgaria

An investor owns a series of properties in both the United Kingdom and Bulgaria. The investor is attempting to calculate the total cost for energy consumption for all of the properties combined for the previous year. For this assignment you will complete the attached Excel document in order to finalise the calculation for the total cost of energy. Please refer to Chapter 2, ‘Utility Companies and Energy Supply’, pages 38-42 in the Energy: Management, Supply and Conservation text for additional information. In order to receive complete credit for the assignment, please be sure to fill out the spreadsheet completely and show your work/calculations. To finalise the spreadsheet please complete the following:

 

  • Calculate the total number of peak and off-peak units used for each unit.
  • Calculate the monthly standing and availability charges for each unit.
  • Calculate the maximum demand and energy charges for each unit.
  • Calculate the annual electricity cost per unit.
  • Calculate the average unit price of electricity per unit.
  • Calculate the total annual cost per city in GBP.
  • Calculate the total annual cost for all units in GBP.

In addition to completing the spreadsheet, address the following items in a Word document for submission.

  • Analyse the mechanisms that control the cost of delivering/supplying energy to these units.
  • Evaluate how the investor might better monitor the costs for potential reduction.

Please make sure that you cite and reference all your outside sources properly, as per the Harvard Referencing System.

Solution: 

Mechanisms that Control Cost of Supplying Energy

Electricity, a secondary source of energy, is usually more expensive compared to other sources of energy. The reason behind this is that more expenses are incurred when distributing and generating it. As opposed to some primary sources of energy which does not require transmission, electricity is transmitted over thousands of miles thus attracting higher tariffs than other sources of energy. Graves and Litvinova (2009) argue that the cost of supplying electricity is dependent on time. In his argument, he explains that demand for electricity is high mostly in the early evening and afternoon (peak hours), and the costs involved for supplying electricity at these times is often higher. I second this argument from my experience working with the Saudi Electricity Company where demand was high in the early evenings, making …………….Click the Paypal icon below to purchase this solution