What is the Financial Loss of a Power Outage?
A power outage can lead to significant financial losses for a business, calculated based on hourly costs associated with downtime. Key points include:
- Recovery Time: It typically takes up to 4 hours to recover from 1 hour of power loss.
- Calculation Method: Financial loss can be quantified by considering factors like employee cost, distribution losses, order processing interruptions, and loss of corporate status.
- Batteries Handling: Replace swollen batteries carefully, checking for causes, and dispose of them responsibly. Wear gloves and avoid impacts.
- Impact Assessment: The outage can affect customer retention, as clients may not renew contracts due to service interruptions.
- Support Availability: Contact PowerContinuity for assistance with sustainable backup power solutions.
You may wonder how to calculate the financial loss of a power outage? It certainly helps to understand the financial risk that not having a power protection system incurs. Economic and/or safety risks are involved – how critical are the protected applications and what is the cost of down time per hour lost?
REMEMBER – It usually takes up to 4 hours to recover from a one hour power loss.
Financial loss of a power outage calculation is simple, worked out on an hourly basis:
Swollen batteries need replacing. Firstly check what caused the swelling (i.e. high temperatures, terminal short or faulty battery charger). Thus avoiding a reoccurrence.
Once replaced, environmentally dispose the old batteries. If you are not using the services of a UPS company like PowerContinuity to carry out these works, contact a local waste recycling company to collect your batteries. Depending on the quantity, they will either collect or can deliver.
When handling the old batteries, be sure to wear gloves. By the same token avoid dropping or impacting the batteries. Swelling may have already weakened the external container.
- Cost of average employee per hour x the number of employees = LOSS.
- Lost distribution if trucks cannot be loaded x number of trucks = LOSS.
- Telephone orders x average number of received orders per hour = LOSS.
- RF system not allowing picking of goods in warehouse x per hour = LOSS.
- Loss of company status due to inability to function for x number of hours = LOSS
- Inability to prepare next day’s distribution / orders = LOSS.
- Corporate website per hour = LOSS.
- Loss off corporate e-commerce site per hour = LOSS.
- Service department’s ability to communicate to customers per hour = LOSS.
- Loss of cutting edge to your competition that are still functioning = LOSS.
- Corporate company image / efficiency and operational status = LOSS.
Total effect on your company and cost per hour = LOSS.
Major effect of a financial loss of a power outage.
Crunch question: Which customers / Clients will not renew their contracts next year because of your inability to function during the power outage?