NEG Energy Surcharge

In 2004, Pilkington introduced an Energy Surcharge, this was due to their cost base being significantly inflated bu unusually high energy costs which seemed likely to continue to rise for some time. They introduced a system which was distinct from normal pricing, where they could pass on some cost increases in a clear and documented fashion. Nobody can doubt that high energy cost is still with us, In fact it is visibly worse than when the energy surcharge was introduced. In our personal lives, we see this with high prices at the petrol pumps & big bills for domestic heating. All the reasons for the initial introduction of the energy surcharge are now even more valid. Of course, we continue to hope that energy costs revert to historic levels at which point there will no surcharge, but we do realise that this is unlikely in the short term.

Many customers accept, understand and support reasons for energy surcharge, but the oil price is quoted in US Dollars and in recent times this currency has shown volatility against European currencies. As a result and following quarterly review in July 2008, from 1st August 2008, currency exchange factor was introduced to reflect the movement of the $US against European currencies, including £Sterling. This exchange rate factor was introduced because it became apparent that  part of the oil price was being determined by currency exchange rates.

The energy surcharge is a visible, fair and transparent way to pass on increased energy-related costs. It is applied consistently across Europe and is controlled by the international energy and currency markets.

Energy Surcharge So Far