The Rate Adjustment Mechanism (RAM), part of the Energy Services Agreement (ESA), has been calculated and we are pleased to inform you of a 4% increase, from 1 January 2027.
The RAM is calculated using the average Consumer Price Index (CPI%) from August 2025 to July 2026, along with the Commodity Price Adjustment CPA% (Oil and Gas Price) over the same period.
| RAM Calculation 2025 -2026 | 2027 January Rate Increase | |||
|---|---|---|---|---|
| CPI% | 3.18% | CPI% | 3.18% | |
| CPA% | 1.24% | Agreed ESA 4% CAP applies | CPA% | 0.82% |
| Total | 4.42% | Total | 4.00% | |
The table below provides the details of the new 2027 ESA base rate for Hourly, Daily and Salary compared to 2026.
| 2026 hourly rate | 2027 paid hourly rate | 2026 day rate | 2027 paid daily rate | 2026 salary (189 paid) | 2027 paid salary (189 paid) | |
|---|---|---|---|---|---|---|
| Grade 1 | £30.73 | £31.74 | £368.76 | £380.88 | £69,695.64 | £71,986.32 |
| Grade 2 | £29.47 | £30.44 | £353.64 | £365.28 | £66,837.96 | £69,037.92 |
| Grade 3 | £28.57 | £29.51 | £342.84 | £354.12 | £64,796.76 | £66,928.68 |
| Grade 4 | £27.13 | £28.03 | £325.56 | £336.36 | £61,530.84 | £63,572.04 |
| Grade 5 | £19.05 | £19.68 | £228.60 | £236.16 | £43,205.40 | £44,634.24 |
If you would like to find out more details about the Rate Adjustment Mechanism, you can do so via the Energy Services Agreement link on the OEUK Website.
Should you have any questions regarding the outcome of the RAM calculation please contact Alison Young, Senior HR Manager at alison.young@woodgroup.com or your trade union contact.