The economic cost of unwanted automatic fire alarms

Although automatic fire alarm (AFA) systems are vital technologies for informing building occupants of a fire, each year Fire and Rescue NSW (FRNSW) responds to tens of thousands of unwanted AFA activations; equating to approximately 97% of all call-outs. The aim of this study was to estimate the economic burden of false AFA system activations by using data collected in NSW for the period 2008–2018. Costs were considered as comprising: business/government productivity losses and other related costs such as false alarm fees; injuries or fatalities sustained in collisions with a responding fire brigade vehicle; wages of FRNSW personnel and other service responders; utility costs of FRNSW; and opportunity costs to the fire brigade, residents and bystanders. This study found that in 2018/19 false AFA system activations resulted in an average economic cost of AUD$246 million per annum to NSW society in a best-case scenario, and AUD$349 million per annum in a base-case scenario; equating to an average cost of between AUD$4952 and AUD$7403 per system initiated false alarm incident. The economic cost of these unwarranted call-outs is prohibitively high and this study indicates the importance of further initiatives geared toward safely reducing the frequency of false AFA system activations.