Dictating Factors of Costs of Power Outages
Power interruptions have cost implications to both consumers and power utility companies. Hence, companies in the energy industry need to establish and know the actual cost of power outages, for blackouts affect their operations and reputation as well. Additionally, companies should know how to protect themselves from equipment damage with Critter Guard systems to keep up operations. Power outages are a nuisance and affect many parties. Here are the factors to consider to truly understand the impacts of power failures.
Consumers do not pay for energy usage over the period that an outage lasts; there is no power after all. As a result, power utility companies lose revenue, which can be quite significant in some cases. Additionally, there is also the cost that utility companies incur as a result of damage to physical components after an interruption in power supply.
These costs of components are assessed heavily when considering damage occurred, since power supply companies often bear the burden of servicing or replacing the same. Any of these options can cost up to millions of dollars, depending on the extent of the damage. If only there were a simple, much more cost-effective, preventive solution...
Some power outage costs do not directly affect utility firms. These include the cost implications like computer-based financial trade operations that cannot run without power, manufacturing companies sustaining losses because they are incapable of operating in outages, and the cost of stalling businesses that greatly depend on energy for communication. Each of these considerations makes it difficult to estimate the exact cost of power failure, but it can easily rack up the expenses.
Time and Duration
Power outage costs vary depending on when it happens, and how long it lasts. For instance, it is more expensive if there is a power interruption when some businesses are experiencing high traffic than the dead of night when rush slows down. Additionally, power outage costs soar when an outage lasts an extended period.
Eventually, businesses grind to a halt, and hindsight becomes 20-20. Preparation and prevention is key to maintain smooth operations and minimize damages and costs, even amidst power outages. Critter Guard's Line Guard and Pole Guard systems protect your power equipment from critter damage, like from squirrels, chipmunks, and even raptors chewing and clawing away at your expensive electricity equipment. For more information on how to protect your utility company and to minimize the huge costs of power outages, contact us today!
- Tags: Effects and Impact
- Written by John Sims