European Energy Surcharge

In September 2004, following the significant increases in energy costs during the previous months and in order to recover a part of these cost increases, Pilkington Building Products Europe announced an Energy Surcharge on all its glass sales.

The Energy Surcharge came into effect on 1 November 2004 and is adjusted quarterly, in line with the IPE Brent Crude price. The surcharge is linked to the IPE Brent oil price and will only apply while that price remains above $30 a barrel. When the value of the IPE Brent Crude drops below $30 per barrel, the surcharge will be removed.

The energy surcharge will next be reviewed on 13th January 2006. The IPE Brent Crude price at the close of trading on that day will then determine the tariff band for the following quarter, beginning on the 1st February 2006.

The methods of calculation is based on the weight of glass supplied, and the formula is a s follows:

Quantity x Height (M) x Width (M) x Thickness (MM) x 2.5 - Weight per Kilogramme

IPE BRENT CRUDE INDEX
SURCHARGE PER Kg
$10-$30 *
0p
$30.01 - $34.00
1p
$34.01 - $34.00
2p
$38.01 - $34.00
3p
$42.01 - $34.00
4p
$46.01 - $34.00
5p
$50.01 - $34.00
6p
Up to each addition $4
+ 1p
* Normal historic level

The current surcharge to be applied is 8p per Kg. Any shapes will be calculated on the overall rectangle from which they were cut. Please note that this only applies to glass. Double glazed units will only be subject to the weight of the glass, not the frames or spacer bars etc.

For example a double glazed unit in 4mm thick glass that is 500mm x 500mm would incur an energy surcharge of £0.40p This is calculated as follows:

Quantity x Height (M) x Width (M) x Thickness (MM) x 2.5 - Weight per Kilogramme
2 x 0.5 x 0.5 x 4 x 2.5 x 0.08 = £0.40p

If you have any further question regarding the European Energy Surcharge please email us using the address on our Contacts Page