Block Price Rate Calculation Examples

Learn how to calculate block rate.

Due to different client requirements, the default overtake and undertake calculations can be overridden for each client.

For each consumption that is invoiced, an Invoice Charge is calculated as it normally would be for Fixed Price or Index Price. After the Invoice Charge(s) is calculated, the contract volume is compared against the consumption and, if needed, the additional charge is added to the invoice. Contract volume information is always determined using the TO DATE of the consumption period.

Following are some examples on how the undertake and undertake calculations are conducted.