Temporary Electricity surcharge

The electricity surcharge will be applied to all invoices starting from 01.02.2022.
 

Surcharge calculation and description

Formula

El.Surcharge = Invoiced kilos * Electricity consumption per kilo casting * (Actual price - Base price)

 

  • Invoiced kilos - the weight of the actual order fulfilled. Information will be shown on the invoice. 

Since most of the electricity consumed in production is in the smelting of cast iron, the weight of the casting most accurately reflects the effect of rising electricity prices ;  [kg]

  • Electricity consumption - 2.55[kWh/kg] - the amount of energy consumed to produce kg of iron in 2021; [kWh / kg]
  • Actual electricity price - Nordpool power exchange average month price in the "LV" area on working days between 7 am and 11 pm (Scandicast business hours) ; [EUR/kWh]
  • Base price - 110EUR / MWh (0.11 EUR/kWh) - the price of electricity previously budgeted for 2022

The value of electricity surcharge can only be determined when monthly Nordpool price data is available and will be calculated at the time of sale. As the average production cycle takes four weeks to sell, the calculation will use the previous month's Nordpool average prices during Scandicast's business hours.

The company operates in accordance with the category "B" polluting activity permit issued by the State Environmental Service. The permit states working hours when the company can organize production, which are working days from 7 am to 11 pm Riga time zone(UTC+02:00). Scandicast does not have the possibility to provide production at night when electricity prices are relatively lower.

The company's personnel will give you more detailed information about the actual monthly Nordpool price and latest data will be updated  on mothly basis and will be available here >>>

But it is also possible to follow the market data directly. Up-to-date information on electricity prices is available on the Nordpool website in the "Historical Market data" section by downloading the Elspot Prices_2022_Hourly_EUR.xls file.
The information in this section is updated daily.

You can also access market data via the link :  https://www.nordpoolgroup.com/historical-market-data/

In a case of clarification necessary, please contact us !

Example of calculation

If you ordered ten pieces of the same cast iron part and each weights 10 kilograms, the total weight of the order is 100 kg
If your delivery would be in December 2021, Nordpool's November data would be used to calculate the electricity surcharge.
November 2021 Nordpool average business hours price 161.00 EUR/MWh (0.161 EUR/kWh)
Base price 110EUR / Mwh (0.11 EUR/kWh)
Electricity consumption per kilo castings 2.55 kWh/kg

El.Surcharge = Invoiced kilos * Electricity consumption * (Actual price - Base price)

El.surcharge = 100kg * 2.55 kWh/kg * (0.161EUR/kWh- 0.11EUR/kWh) = 13.01EUR