Changes

If the frequency is set to 1 then the RCC will more closely align with how you have probably set up your main CBA (e.g., 10 years of impact estimates spread over 10 columns). However, recall from above that upfront impacts are assumed to be incurred at the beginning of every period and they are always assumed to have a frequency of 1. Upfront activities start at period 0, so if an upfront activity spans 10 years it will have 11 total periods (starting at period 0 and ending at period 10). Conversely, ongoing impacts are assumed to be incurred at the end of every period. Ongoing activities start at period 1, so if an ongoing activity spans 10 years it will have 10 total periods (starting at period 1 and ending at period 10). The way the RCC treats upfront vs. ongoing activities may partially explain some numerical differences between your RCC and your CBA, even if both use an annual frequency of 1.         

If the frequency is set to 1 then the RCC will more closely align with how you have probably set up your main CBA (e.g., 10 years of impact estimates spread over 10 columns). However, recall from above that upfront impacts are assumed to be incurred at the beginning of every period and they are always assumed to have a frequency of 1. Upfront activities start at period 0, so if an upfront activity spans 10 years it will have 11 total periods (starting at period 0 and ending at period 10). Conversely, ongoing impacts are assumed to be incurred at the end of every period. Ongoing activities start at period 1, so if an ongoing activity spans 10 years it will have 10 total periods (starting at period 1 and ending at period 10). The way the RCC treats upfront vs. ongoing activities may partially explain some numerical differences between your RCC and your CBA, even if both use an annual frequency of 1.         

   

   

You may decide to use a frequency greater than 1 for an ongoing activity if the regulatory requirement specifies that the activity must be conducted several times per year, or if the requirement to conduct the activity is triggered by some other event that happens several times per year. A frequency greater than 1 will split each year of the analysis into evenly spaced periods corresponding to the frequency. For example, if the frequency = 2, then each year will have 2 periods and there will be 20 total periods over a 10-year timeframe. If the frequency = 1,200, then each year will have 1,200 periods and there will be 12,000 periods over a 10-year timeframe. Since the RCC estimates the stakeholder count in every period, then an annual frequency of 1,200 means that it will estimate the stakeholder count 1,200 times per year, which is more than 3 times per day. This level of precision may not be warranted f you enter an annual frequency of 1,200, then you are telling the RCC that you want to split every single year into 1,200 evenly spaced periods, in which the stakeholder count must be estimated and impacts must be discounted back to the PV base. Is that really what you want to do? That is probably not how you set up your main CBA. With 1,200 evenly spaced periods that means the RCC will estimate the stakeholder count more than 3 times per day. There is nothing mathematically wrong with this, however it is computationally intensive and it may not be necessary.     

You may decide to use a frequency greater than 1 for an ongoing activity if the regulatory requirement specifies that the activity must be conducted several times per year, or if the requirement to conduct the activity is triggered by some other event that happens several times per year. A frequency greater than 1 will split each year of the analysis into evenly spaced periods corresponding to the frequency. For example, if the frequency = 2, then each year will have 2 periods and there will be 20 total periods over a 10-year timeframe. If the frequency = 1,200, then each year will have 1,200 periods and there will be 12,000 periods over a 10-year timeframe. Since the RCC estimates the stakeholder count in every period, then an annual frequency of 1,200 means that it will estimate the stakeholder count 1,200 times per year, which is more than 3 times per day. This level of precision may not be warranted based on the historical data you are using to justify your annual stakeholder growth rate. Also, if you are doing the RCC in parallel with a separate CBA spreadsheet, you have probably not set up your main CBA to have 1,200 distinct periods per year. Although there is nothing mathematically wrong with doing this, it is computationally intensive and it may not be necessary.     

   

   

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. But this can be modelled in several ways, such as:  

If we consider an example where an activity takes 1 hour each time, then if it happens 1,200 times per year it is evident that 1,200 hours per year will be spent on the activity. This can be modelled in several ways, such as:  

# Frequency = 1000, Time Spent = 1 hour  

# Frequency = 1,200; Time Spent = 1 hour

# Frequency = 1, Time Spent = 1,000 hours  

# Frequency = 1; Time Spent = 1,200 hours

# Frequency = 12, Time Spent = 100 hours  

# Frequency = 12; Time Spent = 100 hours

# Frequency = 4, Time Spent = 250 hours  

# Frequency = 4, Time Spent = 300 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. If the frequency is set to 1,000 then that means there are 1,000 evenly spaced periods throughout each year. Stakeholders who enter the market partway through the year would not incur the cost associated with the activity 1,000 times. 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.   

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. If the frequency is set to 1,000 then that means there are 1,000 evenly spaced periods throughout each year. Stakeholders who enter the market partway through the year would not incur the cost associated with the activity 1,000 times. 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.