Quala Energy Surcharge
February 5, 2014
Subject: Energy Surcharge
To Our Most Valued Customers:
We recognize that you have options when it comes to service providers and we appreciate your trust in selecting Quala. Your business is extremely important to us and we are committed to providing you with the highest levels of service, quality, safety and environmental stewardship.
While we try to keep costs to a minimum, the volatility of our energy costs – natural gas and electricity are increasing each month. In order to hedge ourselves while keeping your annual rate increases to a minimum, we will be adding a line item to each invoice with a nominal energy surcharge attached from the start of 2014. This surcharge will be effective March 1 and is based on a 2013 average of the Henry Hub Natural Gas Spot Price (http://www.eia.gov/dnav/ng/hist/rngwhhdm.htm). If the Henry Hub Natural Gas price rises above $3.73, an energy surcharge will be added to each invoice. However, if the spot rate falls below $3.73, no surcharge will be added. We hope that this energy spike will be temporary when demand tapers off and energy costs return to lower levels.
We are separating this energy surcharge from your annual price increase so that any future annual pricing adjustments will be exclusive of energy components. These charges will be applied to interior container cleaning only. An example of the energy surcharge calculation follows:
Henry Hub Price
|<$3.73||$3.74 – $5.73||$5.74 – $7.73||$7.74 – $9.73||$9.74 And Above|
Example – If the Henry Hub price for January is $5.70, then you will have an additional $1.50 charge for each clean on the invoice for March. We expect these charges to appear approximately one month after the actual month incurred. This is due to the reporting of the Henry Hub Index.
Thank you for placing your trust in selecting Quala as the service provider of choice for your cleaning and maintenance needs as well as IBC/tote management services. With our expanding network of over 59+ locations nationwide, we look forward to meeting your business needs for years to come.
For any questions regarding this surcharge, feel free to contact your Account Manager.
Thank you again for your business.
Senior Vice President, Sales & Marketing