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Leaseweb increase of services fees due to increase of electricity prices
Got this email stating an increase over all products and possibly not limited to one time, due to the spike in energy costs.
Wonder DCs, providers will follow.
Dear Customer,
As you may be aware, the world is facing an energy crunch. Natural gas prices on the global TTF market for 2022 have increased from €18 MWh in January 2020 to €110 MWh in December 2021. Natural gas is the main driver of electricity prices, and as a result, electricity prices across the world have increased correspondingly. The reason for this volatility is the increased global demand for energy resulting from unprecedented fiscal and central bank support and supply constraints due to underinvestment and geopolitical tensions.
Until now, we have been able to protect you from these higher prices. Our third-party data center providers have announced to us a substantial increase of power costs for 2022, effective January 1, 2022. As a result, we are compelled to pass on this increase to the fees of your affected services, in accordance with our Leaseweb B2B Sales Contract Schedules. The increased fees will be effective from February 1, 2022, in addition to earlier announced fee increases.
We do not take this decision lightly, but the volatility in the energy markets is beyond our control and is likely to persist for the considerable future. Therefore, further energy price increases cannot be excluded. However, we will continue to make efforts to make our operations more energy efficient for our joint benefit. We already make use of very efficient data centers with low Power Usage Efficiency (PUEs), and we are now focusing our research on new ways to optimize server settings to lower energy consumption.
In line with our contract, please treat this letter as a formal notification of a change in power costs.
For Dedicated Racks and Colocation Racks, the fee will be increased by €4.58 per Amp. For Dedicated Servers, the fee will be increased by €2.86 per rack-unit. For all Cloud services, the fee will be increased by 3.5%.We will continue to provide you with exceptional service – as we move together towards a sustainable future.
If you have any questions, please feel free to contact us by creating a ticket from the Leaseweb Customer Portal. We are always happy to help.
Comments
Pretty much everyone that has colocation in the EU will be affected, if they aren't already. The electricity price is record-high these months and it's unlikely that would change in the upcoming future.
Average prices went down for the preceding three years in many places, and still aren't back to the levels of then. I didn't see anyone rushing to lower prices.
Yea, they will increase price, but when energetic crysis will end and energy prices will drop - service price will not back to the previous level.
what happened to renewable energy?
oh wait its meant to be renewable not affordable
🤣
Nord Stream 2 troubles.
May 30, 2011:
Is Germany going through with this?
I can't wait for them to reduce their prices once energy costs sink again.
Oh, wait, it will never happen.
/CowMilking101
Yes, they still planning to shutdown their entire plants at the end of 2022.
I wonder who is going to follow them, are OVH or Hetzner joining the party?
I don't understand, the energy price spikes in EU, why they increase the price for those servers or VPS in SG as well?
Every hosting/servers provider is affected by the energy price increase. We ( Bacloud ) are affected too. We still are trying to keep the same level of prices in all possible ways. We removed discounts for new customers, weren't able to provide good BF deals this year, etc. There is a high possibility, that we still need to increase prices for our existing customers too. A huge drop in Gas price still provides a chance, to keep the same price level. Even a few euros price increment sounds negative.
It's good that, unlike idiotic politicians, those who are engaged in real business do not talk about the "Russian energy dictate". This is energy market price spike and they can up and down each month.
PS. And yes, the price may decrease and return to normal, but it will take more time.
It's leaseweb
Actually the stupidest part of this is if you have been a long term customer of theirs it gets really stupid to be so. Already each year they tack on 4% more cost on any existing server, at this point I am paying something like 4.28 Euro (they add 4% each year) for the same server listed on their site for 3.84 Euro because of this. Then on top they want to add another 3.5% for this power bullshit, making a cost increase of over 7.5% this year alone for something I can cancel and get much cheaper even with the 3.5% increase. What I will likely do if I even intend to keep the server after this is buy a new server and cancel the old one, why the fuck would I want to pay more than .50 Euro more a month just for being a long term customer and having a server for years when I can just cancel it and buy it again cheaper?
I guess what I am getting at is, I understand their costs have gone up, but this type of bullshit leaves a bad taste in your mouth when they just finished bending you over for your 'yearly cost increase' with similar BS reasons and now they want 3.5% more after that. That is why the text in the e-mail reads, "The increased fees will be effective from February 1, 2022, in addition to earlier announced fee increases."
Honestly I haven't decided if I am going to keep doing business with them or not, if they are so desperate for money they are willing to rip off their long term customers while selling the same exact product on their site for less, maybe they won't be around for much longer anyways.
my 2 cents.
Cheers!
New Year gift..
II am worry that Probably in near future we will see "domino" when other DC will join to this trend
LOL!
I dont usually agree with you but that is some major BS in there.
OVH have some cheap nuclear power in France.
https://en.wikipedia.org/wiki/Gravelines_Nuclear_Power_Station
This is an ongoing issue in all European countries:
https://www.energylive.cloud
leasewho
Problem with inflation is once prices rise, they never go back down.
I don't believe electricity prices will rise in France because they have nuclear power.
I think the electricity prices at the moment 'make problems' everywhere, but probably the Germany providers (will be) more affected than others (they 'turn off' the 'polluting plants' and the nuclear power plants also etc, and partly buy the 'missing' capacity from different countries for higher price - if my 'informations' is not wrong).
If all countries ban digital currency mining, probably, there will be no need for electricity price rise.
ref : https://www.bbc.com/news/technology-56012952
Unlike other providers, LeaseWeb raises the cost of servers more than one year old by a percentage of inflation almost every year. This price increase can only be avoided by replacing the server with a new one. I don't know of any other such provider...
Time to pack in and move out?
No. LeaseWeb is certainly not perfect, and some of the rules may look strange, but they are still reliable and offer good quality and prices. I replied above because the inflation compensation does look strange to end users. But for the most part, we don't raise the price for end users despite rising costs.
Hmm, interesting. Why not move out to Hetzner farms? Their milkmaids from Kharkiv will follow all your desires. Do not forget to offer them a bottle of vodka and candy.
Some of our customers love Hetzner, so we have more than 17 years of experience with Hetzner. But we still prefer LeaseWeb.
Leaseweb network is MUCH better than Hetzner's.
Only if you don't carry them out of the fire undressed.