Further to our notification of the 4th. April regarding the European factory monthly kiln surcharges we are pleased to advise that there has been a reduction for the month of May from £1.50 sq.mt to £1.00 sq.mt and again this could further reduce or increase in June.
The following is a reminder of the reasons for the temporary implementation of kiln surcharges.
Energy costs have risen and are continuing to rise to alarming levels both in the UK and Europe.
I am sure you all know, that one of the largest costs in Ceramic Tile production is the gas firing of the kilns.
Due to the huge increase in energy costs in Europe, the Tile manufacturers are introducing an energy surcharge on each metre of tiles they produce which they are passing onto us.
Factories will calculate the surcharge on a monthly basis so it will fluctuate both up and down.
The factories will advise us at the beginning of each month what the surcharge for the following month will be.
As Tiles UK we will be unable to absorb these extra costs alone, so going forward we will add an extra item line to each invoice, which will be referenced as “Energy Kiln Surcharge” and which will be calculated for each metre of tiles supplied to the nearest metre rounded up. The factories assure us that when the price for gas returns to more normal levels, which they are confident they will, that the surcharges will be dropped and we of course will follow suit.
We are happy to send you typical correspondence from our suppliers confirming these charges should you need them for yourself or your customers. Please don’t hesitate to ask us for this.
Our own fuel delivery surcharge will remain at £5 per delivery until pump prices hopefully reduce.
As always thank you for your support and we hope you understand that we are in unprecedented and unpredictable times.
Tiles UK Ltd