Financial Benefitsa

Financial Benefit

Transformer oil fires are difficult to extinguish

During the Internet search for explosions in the USA, SERGI noticed that most of the sites were equipped with fire fighting systems which had failed to extinguish the fire. This evidence was highlighted recently by the National Fire Protection Association Handbook, Edition 2002, Vol II Section 13, pages 292 & 293. Because of the large number of fire fighting system failures, the NFPA Handbook emphasizes the TRANSFORMER PROTECTOR technology for acting before explosion [16].

Damage cost due to transformer explosions and fire

SERGI has published a synthesis on the damage cost of transformer explosions [5]. The financial consequences often reach hundreds of USD Millions. Transformer explosions and fire provoke important lack of income, require replacement of transformers and surrounding equipment, pollute the environment and convey bad publicity for the affected company. The damage caused depends on the transformer location:




	Vertical Depressurisation Set used for retrofitting


	.Power plant incidents result in very high loss of revenue and can lead to company bankruptcies if not insured. For insurers, the cost reference is 0.5 USD Million per Mega Watt. .Transmission substation incidents can result in the complete blackout of a region or a country. Several well-known cases have been recorded recently (USA, UK, Italy, Spain, etc.). .Distribution transformer explosions in urban areas can have disastrous financial consequences, up to USD billion, because of pollution and litigation costs.

		The TRANSFORMER PROTECTOR acts before any damage is done Purchasing the TRANSFORMER PROTECTOR: .Saves all equipment and buildings, since the danger is channelled far away; .Enables the quick internal repair of the transformer and reduces sharply plant outages; .Leaves the environment unharmed.

The TRANSFORMER PROTECTOR is the sole existing technique capable of reducing significantly the cost of an explosion.

The TRANSFORMER PROTECTOR Financial Benefit is outstanding [5]

Details of the TRANSFORMER PROTECTOR Financial Benefit are presented in Document [5]. To assess a technology for equipment protection, Corporate Risk Managers and Insurers use the following parameters:

.MLEB (Maximum Loss Expectancy Before) is the cost of the worst recorded incident before installing a protection.
.LEA (Loss Expectancy After) represents the evaluation of the damage cost of the worst recorded incident with the chosen protection after installation.
.CTC (Cost to Complete) is the complete price of the protection, including erection and tests.

The Protection Financial Benefit (PFB) is a ratio between the protection price (CTC) and the damage cost reduction (MLEB - LEA):

PFB = CTC / (MLEB-LEA)

For Corporate Risk Managers and Insurers, if:
.PFB < 1%, the protective technology is strongly recommended;
.1% ≤ PFB ≤ 4%, insurance companies adjust their rates and premiums.

For the four incidents analysed in the publication [5], calculations have shown that the TRANSFORMER PROTECTOR Financial Benefit was far below the 1% criterion with ratios ranging from 0.015% to 0.06%.

When an incident occurs, the TRANSFORMER PROTECTOR compensates several thousand times the investment.