e r 2 - Umgeni Water

Chapter| Financial Plan15.2.3 Operating CostsTable 15.3 (a): Operating Costs - EnergyActual Budget ForecastF'08 F'09 F'10 F'11 F'11 F'12 F'13 F'14 F'15 F'16Energy (R'000)- Forecast Price increase* 30.0% 24.8% 25.8% 25.9% 12.0% 12.0% 7.9%- Cost 39 442 45 401 59 398 90 127 90 425 109 958 138 438 155 051 173 658 187 376- Direct: S29 36 905 42 620 56 127 84 135 84 451 94 934 ** 119 522 133 865 149 929 161 773- Direct: S30 386 526 836 1 078 1 078 8 916 ** 11 226 12 573 14 082 15 194Indirect 2 151 2 255 2 435 4 914 4 896 6 108 7 690 8 613 9 647 10 409- % Increase in cost 31.0 15.1 30.8 26.0 52.2 21.6 25.9 12.0 12.0 7.9* As per the Bureau for Economic Research.The increase in energy costs in F’11 by 52.2% compared to prior years is mainly due to:1. Price increase per Eskom of 24.8%.2. Increased pumping compared with the prior years at pump stations most notably the shaft pump and the booster pump station.** The energy costs relating to the DWA owned dams no longer form part of the energy operating costs of S29 but are now recognised aspart of raw water charges. The energy costs of the dams equate to R7.8m for F'12. Refer to section 15.4 for further analysis of unit costs.Table 15.3 (b): Operating Costs - ChemicalsActual Budget ForecastF'08 F'09 F'10 F'11 F'11 F'12 F'13 F'14 F'15 F'16Chemicals (R'000)- Forecast Price increase 20.0% 8.3% 7.0% 6.8% 7.2% 6.9% 6.9%- Cost 25 175 32 751 32 510 33 947 37 436 39 410 42 090 45 120 48 234 51 562- % Increase in cost 18.8 30.1 (0.7) 4.4 15.2 5.3 6.8 7.2 6.9 6.9Table 15.3 (c): Operating Costs - MaintenanceActual Budget ForecastF'08 F'09 F'10 F'11 F'11 F'12 F'13 F'14 F'15 F'16Maintenance (R'000)***- Forecast Price increase 7.5% 8.0% 6.0% 6.8% 7.2% 6.9% 6.9%- Total Cost 106 983 115 540 124 117 137 632 121 632 125 977 134 545 144 232 154 184 164 822- Direct: S29 75 936 98 365 106 329 113 911 104 942 104 676 *** 111 794 119 843 128 113 136 952- Direct: S30 1 326 2 460 2 171 1 136 1 673 5 766 *** 6 159 6 603 7 058 7 545Indirect 29 721 14 715 15 617 22 585 15 017 15 535 16 592 17 786 19 013 20 325- % Increase in cost 31.9 29.7 6.3 13.1 (2.0) 3.6 6.8 7.2 6.9 6.9- % of Assets (PPE) 4.6 5.6 6.0 5.3 4.0 3.6 3.4 3.3 3.2 3.0*** Maintenance costs have reduced due to operational efficiencies as well as the fact that R5.1m of costs in F'12 relating to the O&M onDWA dams are now reflected in the raw water costs.Page 82 Umgeni Water Five-Year Business Plan | 2011/2012 to 2015/2016