**THIS IS A NEWSLETTER E-Mail sent on 30. September 2022 to our clients**

 

Hello,

you are receiving this E-Mail because you are one of our customer or where one. This is not a marketing email!
Please read carefully.

As the owner of HostSlick e. K, i will explain all the details in this E-Mail. We will talk straight to the point here.

This is a update to our last Email sent on 28. September 2022. You can watch it also here in announcements.

Unfortunately we have received the Feedback much earlier as expected regarding the new power price.
We have had the expectation from our Colocation Providers / Datacenters of about 0,45€/kwh and expected ourself to have arround 0,58 - 0,70€/kwh.
As stated, Optimal scenario was a double of the power pricing. -> 0,59€/kwh.

However we got told that for Datacenter: Almere DC2 the power price is now going to be 0,64€/kwh on a flexible basis.
The information we got was that they where getting a new quote on a contract for another one or two years.
Unfortunately the price the datacenter got was 0,79€/kwh.

Normal is that fixed long-term 1/2 year contracts are cheaper. This seems to have changed. The flexible contracts as of now seem cheaper.

Therfor, they have denied to make a new contract and starting from 01.10.2022 the power price in Almere DC2 will be 0,64€/kwh.
Lelystad DC1 will stay until March 2023 at 0,29€/wkh  - as contracts expire then.

We already seen Datacenters in NL with 0,98€/kwh.  
While most, including the very big players in the market are still on their old contract. Do expect that the whole market will increase prices soon.
Latest by End of Q1/2023 or beginning Q2/2023 you will see even big providers, or lets say everyone on the Datacenter market in EU will face this kind of price explosion.

As said, its only Almere DC2 Datacenter for us going to 0,64€/kwh yet as the contract expired. Our Datacenter Lelystad DC1 is also to be re-negotiated March 2023. But we do not expect a lower amount then 0,64€/kwh.

To compare:

Before 2022 power price in our Datacenter and most arround same: 0,19€/kwh
Starting from March 2022 - 0,29€/kwh.


As the situation seems very unclear and the energy prices in the Europe market are going after the Merit-Order Principle the prices for power and gas in Europe remains high.

What does Merit-Order mean?

Basically unlike in the USA or some other States where the Government is controling and making the Prices for Energy, in Europe it is a free market where all EU countries are exchanging buying/Selling
energy to each other.  The system is a great idea. However it has a vulnerability:  The EXPENSIVEST power plant to produce power is making the price for EVERY plant on the market.

How does that affect the electricity prices?

Currently the expensivest way to produce power is and are gas or lets say the gas plants to turn gas into power/electricity. Means the gas prices which went sky high due to the war in Ukraine are affecting the Power Prices by a significant amount.

Result in Europe?
We all know that our own politicans are not the smartest. If you ask me, the polticans in Germany are the biggest joke.
Sometimes i ask myself: Is this even real what they just said?  (Hint: especially Bärbock, Habeck.. from Alliance 90 / The Greens)

By sanctioning Russia and lowering the import of Gas, they just sanctioned themself.  Europe is and was independent from Russian gas. We all know it.

Lets be honest! How stupid is that?  With that they are screwing the  whole economy in Europe.  The hard work of our parents, multiple generations will be destroyed.
Companies who are more then 100 years old and alot of bakeries are already closing!  - And this while the effect not even started. 

Every child knows, electricity, gas and all related to energy is driving the Economy and having direct effect on the prices on almost anything.

I said we will talk a real word here and come straight to the point. However. Stop ranting. 

Im really unwillingful to make a price increase but after calculating and reviewing things we are forced to do so by 10% by 1. November 2022.

To come to the point:
Starting from 1. November 2022 all existing services will be increased by 15% for now*.
As invoices are always being generated 14 days before due date, the prices will be

Prices on Website for new orders will update by 1. October 2022.

Please note: all our prices listed on website already include ~20% VAT! Depending on your country.

*As we do not know yet the increases for Lelystad until March 2023. We can not guarantee that there won't be another price hike in and or arround March/April 2022 by another 5-10%.
We will as well try to expand and have some awesome plans for 2023 to balance out extra costs and try not to increase again!

We hope you understand that the situation is very serious already and understand that there was no way arround it.

Some clients asked before: Will you decrease the prices, once the power prices are going down again?

Yes. The prices will be updated again. You have my word. But again, to talk a clear word, do not expect the issues in this world - especially in Europe and all the effects will solve in the next 2 years.
I think arround 2025/2026 everything will go to the price before 2022.

 

NOTE:

ANY provider will face this. The big and the small. It just depends when the contract of a company ends. Most will expire end of the year. So most other datacenters and providers will have to increase their prices. We will all know by end of this year.
You may already see it happen in any Industry. Including the increased amount of bankruptcies.
With this email we wanted to give a short situation update. We will update once we know more and have made a new pricing with our datacenter partners later this year.

We will update you regarding the energy-crisis


Last but not least:
As current market and future is unclear, i would be thankful of you to take part in our surves about Inflation and hiking energy-prices here:

https://forms.gle/fVfcYJDP3cqqjuyj7

 

Thank you for understanding.

 

M. Kutzner
HostSlick e. K. Management.

 



Friday, September 30, 2022





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