The FRED Tool has been used successfully on over 25 projects as part of the economic appraisal process. It uses nationally available property and terrain datasets, combines them with water depths generated by hydraulic modelling studies, and calculates the associated economic damages using methods defined in:
- The Flood Hazard Research Centre Flood and Coastal Erosion Risk Management: A Manual for Economic Appraisal (known as the Multi-Coloured Manual or MCM),
- The Environment Agency Flood and Coastal Erosion Risk Management Appraisal Guidance (FCERM-AG) and
- The HM Treasury Green Book - Appraisal and Evaluation in Central Government.
The application calculates the economic damage due to flooding for a range of probability events, combines them to calculate an average annual damage (AAD) and then discounts and sums them over time, whilst taking account of changes including climate change, to produce a present value damage (PVd) for each property.
The FRED Tool calculates damages from all sources of flooding and accommodates saltwater and freshwater flooding and different duration storm events.
The tool is able to handle thousands of properties, multiple scenarios and options, and output data in a series of tables.
The application was developed to avoid errors occurring when such calculations are undertaken. It is possible to trace the calculation for any property through the outputs produced. To further reduce errors, the tool leads the user through a series of steps where the input data is checked before moving onto the next stage of the analysis. This transparency sets the FRED Tool apart from the competition and gives reviewers and approvers of Business Cases the confidence to recommend projects for approval.
The types of damage that can be calculated include:
- Direct Residential Property Damages
- Direct Non-residential Property Damages
- Direct Vehicle Damages
- Indirect Evacuation Costs
- Indirect Emergency Services Costs
- Intangible Health Benefits