As you may be aware, recent increases in prices of commodities and particularly oil and gas have increased the wholesale cost of electricity. All major UK domestic suppliers have increased their prices substantially this year.

Our own electricity pricing tracks that of the wholesale market. We are contracted at a certain price for a period of 6-12 months, and at the end of that period we enter a new period at a new price, which fixes our cost for the next 6-12 months. Our price has recently come up for renewal, and has seen a substantial rise of 40.6%.

The net effect of this is a substantial increase in our cost of supplying services. We are increasing the cost for new orders in the next few days, of both dedicated servers and colocation services. We also have no choice but to pass on the extra cost to existing clients in the form of a power surcharge of £6 to reflect the increase in electricity costs. We will review the power surcharge at the end of our current power rate, and will pass on any savings we make to you.

The power surcharge is £6 per month per server, and reflects our own increase in costs. It is temporary and will be reviewed when our next power rate starts and decreased if the market has done that. If you would like more details of how the surcharge has been calculated please do not hesitate to get in touch as we are more than happy to fully disclose this to you.

The new costs for us are effective from 1st August 2008, but the earliest we are applying this to any client is the 1st November. It will be effective from the end of the current contracted period. We are absorbing the power increase from August to October inclusive.

I'm sure this doesn't come as much of a surprise because of the well-publicised nature of rising energy prices, however if you do have any queries or would like to discuss anything related to your account please get in touch and we would be more than happy to help. As you may have seen recently we've been making steady improvements to the services that we offer and we have many more still in the pipeline to aid the success of your business in the short, medium and long term. We have never raised pricing for dedicated servers before despite rising costs and this decision has been difficult to make. As we have outlined, if it becomes possible in the future to lower this surcharge we will take this measure immediately. We believe that RapidSwitch still offers excellent value for money in the UK market and is in a position to maintain a superior level of service for all of its clients.

Regards,

The RapidSwitch Team

No worries. Wehn you do get a job I expect to receive atleast 50% of your first month's wages