Nov 05, 2021 21:00:00

Provider announces 161% price increase in response to soaring energy prices

10 major electric power companies and 4 major gas companies

will raise their tariffs in December 2021. This is the fourth consecutive month of price increases, which means that prices have increased by 9% to 18% compared to January 2021. The cause of this is soaring prices of fuels such as liquefied natural gas (LNG) and coal, the impact of which is spreading worldwide, and hosting providers in the UK have announced a 161% price increase.

General Terms and Conditions Price Changes --M247
https://m247.com/general-terms-and-conditions-rpi-price-increase/

Feeling the pinch? How about a 160% hike in data center fees • The Register

https://www.theregister.com/2021/11/04/m247_price_increases/

The price increase was announced by M247, a hosting provider based in North West England. The price increase is 161% and the new rate will be applied from December 1, 2021. The official website simply announces that the price will be raised, but according to the news site The Register, customers are sent documents explaining the details.

The document sent by M247 explains that although companies have made efforts to prevent external factors from affecting prices, the European energy market has been forced to raise prices due to unprecedented price hikes. is.

In fact, rising energy prices have been at dangerous levels worldwide over the past year. According to statistical information released by the energy industry information site Shindenki Net, crude oil prices fell to the $ 20 level per barrel (about 2200 yen at that time) in April 2020 due to a sharp drop in demand due to pandemics. Later, it started to rise and reached the $ 70 level (about 8,000 yen) per barrel as of September 2021. This is an 80% increase over the previous year.

Crude Oil Price Trends (WTI / Brent / Dubai / OPEC Basket) | New Electric Power Net
https://pps-net.org/statistics/crude-oil

Coal prices were on a gradual downtrend from 2017 to summer 2020, but began to rise in winter 2020 and soared in spring 2021. South African products were priced at $ 146 (about 16,600 yen), up 154% from the previous year, and Australian products were priced at $ 186 (about 21,100 yen), more than double the previous year.

Changes in coal prices | New Electric Power Net

https://pps-net.org/statistics/coal

Data on natural gas prices in Japan, the United States, and Europe are available. Compared to the United States and Europe, which can be supplied via pipelines, Japan tends to be more expensive due to the transportation cost of liquefying gas and transporting it by tanker, but in May 2021 Europe Gas price overtook Japan, and as of September 2021, the United States was

$ 5.11 per MMBtu (about 581 yen, up 166% from the previous year), while Japan was $ 13.87 (about 1580 yen, up 118% from the previous year). ), Europe is 22.84 dollars (about 2600 yen, 478% increase from the previous year).

Changes in natural gas prices (Japan / US / Europe) | New Electric Power Net
https://pps-net.org/statistics/gas

However, not all hosting providers will raise prices, and the same UK Cloud has announced that CEO Simon Hansford has no plans to raise prices for The Register. Hansford said he was unaware of the planned price increase for the M247.

The Register pointed out that the 161% price increase was too unprepared, asked M247 for comment, and contacted the CEO via LinkedIn, but said there was no response.