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Net Benefit View

This article outlines how to use and interpret the Net Benefit Chart

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Written by Product Marketing
Updated over 7 months ago

Overview

The Net Benefit View is the first all-financial view of the Opportunities. It is a powerful tool designed to provide a more comprehensive understanding of your cash flow for your proposed energy transition/decarbonisation journey.

Getting Started

To get started, update the opportunities in the register with the following fields:

  • Financial Savings

  • Investment values

  • Start Dates

  • Target Dates

Each of the above fields needs to be populated to be displayed on the Nte Benefit Charts.

They also require a status of either:

  • Idea; or

  • Qualified Idea; or

  • In Progress; or

  • Realised

The chart will not display opportunities with a status of On Hold or Abandoned.

To draw the chart the following assumptions are made:

  • The investment amount is made in its entirety on the “Start Date” of the Opportunity.

  • The savings are realised in their entirety on the “Target Date” of the Opportunity.

Investment vs Savings Chart

The Investment vs Savings chart simply displays the annualised investments and savings financial figures. These can be made up of multiple Opportunities per year.

Chart Series

  • Investment: This is the cost of implementing the Opportunity

  • Savings: This is the financial savings achieved by implementing the Opportunity.

  • Difference Trendline: This is the Investment minus the Savings for a given year.

Accumulated Savings and Cashflow Chart

This chart displays the accumulation of savings over time and clearly shows the year that the cash flow will become positive.

Chart Series

  • Accumulated Savings: This refers to the total amount of money you will save over time from the planned Opportunities.

This is calculated as shown below:

SUM((Opportunity 1 Savings * Years since target date), (Opportunity 2 Savings * Years since target date))

  • Annual Cost Avoidance: This is the amount of money to be saved by implementing the planned Opportunities.

This is calculated as shown below:

  • Year 1 Cost Avoidance = SUM(Year 1 Savings)

  • Year 3 Cost Avoidance = SUM(Year 1 Savings, Year 2 Savings, Year 3 Savings)

  • Cashflow: This is the flow of cash over the period shown on the chart.

This is calculated as shown below:

Opportunity Costs* - Accumulated Savings**

*Opportunity costs are the sum of every cost in a given year (by start date).

**The Opportunity Savings will use the accumulated savings figure above.

Important Consideration

If a site has Opportunities with multiple different currencies the charts will only display Opportunities that match the currency of the Opportunity with the earliest start date.

Updating the Opportunity Dates

The user can update the Start and Target Dates of the Opportunities that are in view on the Net Benefit Chart. This feature allows the user to change the dates of implementation and visualise what effect these changes will have on the cash flow.

Upon clicking on the savings or Investment columns the user is presented with a tooltip of all of the Opportunities that are contributing to the column.

Once the user selects the Opportunity they wish to update the dates for they simply click on the name. They are then shown another tooltip that allows them to adjust the dates.

Once the dates are adjusted the chart will re-draw itself if required to reflect the date changes. The user can then review these changes and decide whether to Save them or discard them.

If the changes are saved they will permanently update the opportunity with these new dates.

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