Common use of Regression Clause in Contracts

Regression. The graph below shows a plot of base year weekly electricity or gas use against just one product group. (We discuss multiple product groups further down this page.) = + Slope = m = energy used to make one tonne of product Intercept = c = baseload of site A ‘line of best fit’; known as a ‘trendline’ in excel, has been added to the graph. The ‘equation’ for that line has been dispalyed and this gives the y=mx+c formula. The equation means that for one tonne of energy product made it takes ‘m’ kWh of energy to make it. And when no product is being made, the site uses ‘c’ kWh of energy. The R2 value gives an indication of how representative or accurate the line of best fit is. An R2 value above 0.7 is usually considered acceptable. In switching to a NOVEM, this type of analysis on a single product site is not needed (we can just use the already reported kWh/tonne values for that site). We have only provided this explanation to help with understanding how multiple products are handled.

Regression. The graph below shows a plot of base year weekly electricity or gas use against just one product group. (We discuss multiple product groups further down this page.) 𝑦 = 𝑚𝑥 + 𝑐 𝑅2 = 0.7 Slope = m = energy used to make one tonne of product Intercept = c = baseload of site A ‘line of best fit’; known as a ‘trendline’ in excel, has been added to the graph. The ‘equation’ for that line has been dispalyed and this gives the y=mx+c formula. The equation means that for one tonne of energy product made it takes ‘m’ kWh of energy to make it. And when no product is being made, the site uses ‘c’ kWh of energy. The R2 value gives an indication of how representative or accurate the line of best fit is. An R2 value above 0.7 is usually considered acceptable. In switching to a NOVEM, this type of analysis on a single product site is not needed (we can just use the already reported kWh/tonne values for that site). We have only provided this explanation to help with understanding how multiple products are handled.

Regression. The graph below shows a plot of base year weekly electricity or gas use against just one product group. (We discuss multiple product groups further down this page.) 𝑦 = 𝑚𝑥 + 𝑐 𝑅2 = 0.7 Slope = m = energy used to make one tonne of product Intercept = c = baseload of site A ‘line of best fit’; known as a ‘trendline’ in excel, has been added to the graph. The ‘equation’ for that line has been dispalyed displayed and this gives the y=mx+c formula. The equation means that for one tonne of energy product made it takes ‘m’ kWh of energy to make it. And when no product is being made, the site uses ‘c’ kWh of energy. The R2 value gives an indication of how representative or accurate the line of best fit is. An R2 value above 0.7 is usually considered acceptable. In switching to a NOVEM, this type of analysis on a single product site is not needed (we can just use the already reported kWh/tonne values for that site). We have only provided this explanation to help with understanding how multiple products are handled.