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Modelling Sludge Opex Efficiency

Price: £300


Ref: 11/RG/04/4
ISBN: 1 84057 590 5
Published: 2011

The main objectives of this project were to: understand the data and methodological issues that appear to have restricted previous attempts to model sludge operating costs, and; develop a robust approach to explain the variation in sludge operating costs across companies.
The first stage of the project provided recommendations to mitigate the issues identified with the data and approaches used in previous analysis. In the second stage, these recommendations were explored and econometric models for sludge expenditure were developed. These models demonstrate emperically that sludge volumes, landbank availability and population density are drivers of sludge expenditure. Data limitations have meant that it has not been possible to tackle all the issues identified in the project. However, the analysis does go some way to developing a robust econometric model for sludge costs that could be used as an alternative to the current Ofwat unit cost model.

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