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→Annual Frequency
Other times, the regulatory text may state that an activity must be conducted every time some other event happens (e.g., "do Activity X every time Event Y happens"). An example of the latter is a requirement to report the importation of goods containing a certain chemical: this could happen 1 time, 2 times, or 1,000 times per year. In these situations, the appropriate frequency is not always straightforward.
Other times, the regulatory text may state that an activity must be conducted every time some other event happens (e.g., "do Activity X every time Event Y happens"). An example of the latter is a requirement to report the importation of goods containing a certain chemical: this could happen 1 time, 2 times, or 1,000 times per year. In these situations, the appropriate frequency is not always straightforward. If the activity takes 1 hour each time, then if it happens 1,000 times per year it is evident that 1,000 hours per year will be spent on the activity, however this can be modelled in several ways, such as:
# Frequency = 1000, Time Spent = 1 hour
# Frequency = 1, Time Spent = 1,000 hours
# Frequency = 12, Time Spent = 100 hours
# Frequency = 4, Time Spent = 250 hours
All of the above methods will result in 1,000 hours being spent on the activity per year for businesses that are in the market at the start of the year. However, with positive stakeholder growth, the selected frequency determines at which point the RCC will model new entrants as entering the market and therefore beginning to incur the cost. This means that the choice of frequency can affect the total impact estimates; the different methods of modelling the activity by shifting between frequency and time spent will not give the exact same results.
Note that the stakeholder count must be estimated in every period of the analysis, and costs incurred in every period must be discounted back to the present-value base year. The frequency determines how many analytical periods there are in each year of the analysis, and hence the total amount of periods throughout the analysis. This means that if you have a lot of periods, the RCC will be estimating the stakeholder count many times and doing a lot of sub-annual discounting.
Note that the stakeholder count must be estimated in every period of the analysis, and costs incurred in every period must be discounted back to the present-value base year. The frequency determines how many analytical periods there are in each year of the analysis, and hence the total amount of periods throughout the analysis. This means that if you have a lot of periods, the RCC will be estimating the stakeholder count many times and doing a lot of sub-annual discounting.