Template
Price increase notice template
Short answer
Use this template when you are the supplier and the contract allows a price increase, for example a fixed uplift or an index-linked adjustment. State the clause, the calculation and the effective date, send it within any required notice period by the contractual channel, and keep proof of dispatch.
By Pactinel editorial teamReviewed on October 22, 20262 min read
How to use
- Confirm the contract actually permits the increase and when: at renewal, on each anniversary, or by index. Read the price escalation clause and the CPI escalation guide.
- Identify the index (for example CPI), the base and comparison periods, the published figures, and any cap and floor.
- Check whether the clause requires advance notice of the increase and for how long. Increases not notified in time may not take effect until later.
- Read the notice clause for channel, address and addressee (notice clauses).
- Fill in the calculation table so the customer can reproduce the number.
- Send by the contractual channel and keep proof of dispatch. Customers receiving a notice can use the same table to check it.
Template
[Your company legal name] [Your address]
[Date]
By [delivery method required by the notice clause] To: [Counterparty legal name] Attention: [Addressee name and title] [Counterparty notice address]
Re: Notice of price adjustment under [Contract title] dated [Contract date] (the "Agreement")
Dear [Addressee],
Under [Section / clause number] of the Agreement, [Your company legal name] gives notice of the following adjustment to the fees for [Services / products].
Item Value Current fee [Current fee and currency] per [period] Adjustment basis [Fixed uplift of [percentage]% / [Index name] change] Index base period and value [Base period]: [Value] Index comparison period and value [Comparison period]: [Value] Calculated change [Percentage]% Cap or floor applied [Cap / floor percentage, or "none"] Adjusted change [Percentage]% New fee [New fee and currency] per [period] Effective date [Effective date] This notice is given at least [number] [days / months] before the effective date, as required by [Section / clause number]. The new fee applies to invoices for periods starting on or after the effective date.
If you have questions about the calculation, please contact [Name] at [Email] by [Date].
Sincerely,
[Name] [Title] [Your company legal name]
Checklist before sending
| Check | Done |
|---|---|
| Clause permits the increase at this time | [ ] |
| Index figures taken from the official publication named in the contract | [ ] |
| Cap, floor and rounding rules applied | [ ] |
| Notice period before the effective date met | [ ] |
| Channel, address and addressee match the notice clause | [ ] |
| Proof of dispatch saved; invoicing updated from the effective date | [ ] |
This template is general information, not legal advice. Whether and how fees may be increased depends on the contract and on local rules, including consumer and sector rules; check before sending.
Pactinel can record escalation clauses and help you see upcoming price changes; see the free plan.