Pilkington Energy Surcharge
Why we introduced an Energy Surcharge in 2004
The Energy Surcharge (ES) was introduced in 2004 as a mechanism to reflect the significant increases in the energy element of our costs, distinct from normal pricing, in a clear and formulaic method. By highlighting that this element of pricing is directly related to fuel/energy prices using the published IPE Brent Oil Price Index, we signalled to you, our customer, that we wished to be transparent about this major cost driver.
Removal of separate Energy Surcharge and move to “all inclusive” pricing
Increasingly, our customers are calculating the ES amount per m2 and then adding it to the base price to produce a total “all inclusive” price. Some customers reflect Energy Surcharge in their prices out to their customers, some do not. In addition, the mechanism is getting less accurate as a reflection of our major cost drivers – energy and raw materials. After careful consideration, we have decided to listen to the requests of many of our customers and simplify the pricing process by discontinuing an additional Energy Surcharge, including it instead in the price we charge.
For sales after the 1st November 2014, prices and ES will be combined to give an “all inclusive” price. In the future, we will then have to take the ongoing increases in energy costs, like other costs, in to consideration during our normal pricing activities.
All sales continue to be subject to Pilkington United Kingdom Limited General Terms and Conditions of Sale.
If you have any questions on this, please contact your usual sales contact.