Part XIII - Area Failure Deduction

Area Rate

[An example of how the key metrics used to determine the Unavailability Deduction is calculated is provided as follows. This is based on the following assumptions:

•  Priority 1 - weight 50 (rectification time 2 hrs)

•  Priority 2 - weight 30 (rectification time 8 hrs)

•  Priority 3 - weight 15 (rectification time 24 hrs)

•  Priority 4 - weight 5 (rectification time 7 days

•  Unitary Charge £5,000,000

•  Gearing 200%

The Area Rate is calculated by dividing the Unitary Charge (multiplied by 2 for the 200% gearing) by the Total Availability Weighting (TAW).  The following example illustrates how the TAW is calculated:

If an Area with a Weighting Factor of 50 (such as a Custody Suite) is unavailable within Station 1 for 3 Deduction Periods (i.e. 6 hours being 3 deduction periods based on 2 hr rectifications) the deduction can be calculated as:

The Unavailability Deduction would therefore be equal to 50 multiplied by £0.53 multiplied by 3, which equals £79.50. The deduction for Unavailability will apply each time that a rectification period relating to the same instance of Unavailability is missed. In this example one failure to rectify within a 2 hour period would have equalled a deduction of £26.50, once the next two hour rectification is missed the deduction increases to £53 and then once the third rectification of two hours is missed it increases as shown to £79.50.]