UCLL Sub Loop Co-Location Annualisation Factors used in Calculation.

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Presentation transcript:

UCLL Sub Loop Co-Location Annualisation Factors used in Calculation

2 Annualisation formula Chorus agrees the formula from the TSO process is appropriate Is some contention around input values

3 Input values for annualisation calculation ItemDraft STDChorusInput Values Cost of cabinet$58,973 Weighted average cost of a cabinet WACC10% pre tax11.3% post taxChorus WACC required by Telecom. Tilt00Consistent with agreement in TSO. Build period00.5 yearConsistent with agreement in TSO. Economic life20 years10 yearsDiscussed in separate presentation. Annualised Capital Cost (%)11.75%22.42% Direct Operating and Maintenance costs nil12% on Annualised Capital Cost Consistent with agreement in TSO. Contribution to Common Costs10% on Annualised Capital Cost 10% on Annualised Capital Cost and Operating and Maintenance costs Set by the Commission at 10% Total $ per month$635$1,357