Another budgeting question
samilou67
Just JoinedRegistered Posts: 6
Hi I seem to have be having a complete blank and I have my exam tomorrow.
The years energy is forecast to be 364000 assuming a 4% increase in consumption and a 6% increase in tariffs.
Instead of energy consumption increasing it is now forecast to decrease by 8%
Calculate the revised energy budget
Answer is £322000
The years energy is forecast to be 364000 assuming a 4% increase in consumption and a 6% increase in tariffs.
Instead of energy consumption increasing it is now forecast to decrease by 8%
Calculate the revised energy budget
Answer is £322000
0
Comments

You can ignore the tariff increase as it doesn't feature in the adjustment.
364,000 / 104 * 100 = 350,000 gets you back to 100% of the current year (although this still assumes a 6% tariff increase)
350,000 / 100 * 92 = 322,000 as you will only use 100  8 = 92% of what you used this year in the next period.
Shorthand  364,000 / 104 * 92 = 322,000.0