Welcome to Wallwork Group

As an organisation, we must regularly review our operational effectiveness for the coming year and determine the best way forward to continue to deliver our services to our customers. We are now in a situation, where as a high volume user of energy, despite reductions in the markets, these price changes have been mitigated by the electricity network operators increasing and adding further charges, with the knowledge that we have limited opportunity to challenge or choose alternatives. This is also the same for consumables such as processing sales and gasses. Even with the reduction in energy prices on the wholesale market, we have seen an increase in pass-through charges on top of the Kw/H rate, such as:

- Transmission Network Charges +136%
- Distribution System Charges +25%
- Balanced Use Services +22%
- Contractual Charges +12%
- Energy Management Charges  +100%
- Daily Usage Band, reduced 50% - +100% 

As a result, we have signed into new contracts as we believe the market changes will have little effect on reducing our cost base for the future due to the increases in pass-through charges and other additions and the cost of energy will remain to the organisation at the current level. We are also subjected to new contract conditions for our service gases, such as Nitrogen, Argon, Ammonia,etc which only guarentee supply. Since the beginning of the year, an extra 55% increase has been added, increasing our process consumables costs by a total of 60%. 

It is now our intention to start to roll our surcharge into our standard prices and from November 1st, 2023, we intend to reduce the surcharge by 4.8% and increase our prices by 8.8%. On May 1st, 2024, the remaining surcharge will then be added into our standard pricing, removing the surcharge.

Again, it is our goal as an organisation to maintain processing and remain fully operational to provide the services required by our customer base. We have no intention of reducing our geographic footprint or service, so we can continue to provide the essential work needed to support UK manufacturing and also continue to invest in the business to ensure the longevity of the service to the industries required and provide new technologies in the future. We feel this is particularly important when taking into account the number of contract heat treaters who have reduced capacity or gone out of business in recent years.

We would like to express our regret for this situation, however, it is beyond our control. If you would like advice on how changing batch sizes or process specifications may better contain your costs, then please contact the plant that you deal with or your local sales representative.

Yours Faithfully

Wallwork Group

**Due to the continued unpredictability in energy markets, commodities, consumables and the reduction in Government EBDS, Wallwork Group Surcharge from November 1st 2023, will be set at 4.9%**