Oil Indexed Commodity Charge
Your expectations: Participation in market movements, spread the risks, forward planning
- Would you like to take advantage of the opportunities of market-linked pricing?
- Do you value transparent pricing?
Our promise to deliver: Transparent pricing according published listings of oil products, simple processing
At contract closure, you agree on a formula price that is tied to the commodity oil. We work out a commodity charge for you in an individually defined period (reference period) in a transparent manner. The commodity charge is determined from historic price quotations for oil or oil products from defined qualities and publications. At the end of the reference period, we calculate the average from all the price quotations, and this becomes the commodity charge for your natural gas deliveries.
Once the price has been determined, we deliver according to your needs in the relevant price applicability period. We can also agree a time lag between the reference period and the price applicability period.
You can choose the length of the three phases “Reference period – time lag – price applicability period” from a broad range at the beginning of the contract (e.g. 6 months – 3 months – 3 months). You then purchase the natural gas at the commodity charge determined throughout the price applicability period. The price applicability can be between one day and one calendar year.
Possible oil products: light heating oil (LHO), heavy heating oil (HHO), Diesel, fuel oil (FO), or Brent
The shorter the price applicability period, the more you will participate in short-term market movements.
You must only make an initial purchase decision when determining the Oil Indexed Commodity Charge.