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Difference Between Fixed Costs And Operating Costs

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Fixed costs Variable costs
The annual fixed cost of a plant includes interest, taxes, insurances, maintenance, depreciation, managerial, salary and rate of return The Variable fixed cost of a plant means expenses which vary with the operation or the amount of energy produced
The fixed cost of the steam plant consists of cost of land , installation, equipment , design power house building , testing, commissioning etc. The variable fixed cost of a steam plant includes the cost of coal , oil , repair , water , salaries of operating staff
The fixed cost of a hydro plant consists of the cost of survey , bridges, dam, earthwork, railhead, highways, other civil engineering works, powerhouse structure, design, specifications, equipment testings, commissioning etc. The variable cost of a hydro plant includes salaries and wages of operating staff , maintenance staff and suppliers . The operating cost of hydro plant is very small
The fixed cost of a nuclear plant includes the cost of plant site , equipment testing and commissioning The variable cost of a nuclear plant includes the cost of fuel , water, material, required for repair and ,maintenance , salaries of operating and maintenance staff . The operating cost is very high

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