Waste Connections conducts business in Canada through various operating subsidiaries and we are continually looking for ways to improve the value, quality and service we deliver to our customers. This policy is intended to help you understand some of the line items on your bill in an open and transparent manner, and to explain how we strive to control our costs and minimize the impact to our customers.
One of the line items on your bill is a Fuel Surcharge. This amount fluctuates monthly, and tracks changes (up and down) to the price of diesel and similar hydrocarbon-based fuels and related products used to operate our fleet of vehicles. The surcharge allows us to control such fuel costs so that we are able to maintain a reasonable operating margin for our business.
In Canada, the Fuel Surcharge is tied to the “Canadian Average Retail Price for Diesel” (on a per litre basis) as listed on the Natural Resources Canada website using the peak weekly price per litre from the preceding calendar month (the “Canadian Retail Price”). This index is widely used in the trucking and transportation sector as a basis for fuel related pass through costs.
The Canadian Retail Price (as determined by the above index) is then referenced to the Waste Connections Fuel Surcharge Table to determine the percentage amount applied to your monthly invoice charges, before tax. Because the charge fluctuates with external prices, the charge will increase as the cost of fuel increases and will decrease when external fuel prices decrease. The fuel surcharge remains constant when the Canadian Retail Price is equal to or falls below $0.70 per litre , which is our baseline fuel rate in Canada.
You should be aware that the amount charged on your invoice is not directly associated with the cost of servicing your specific account; rather, it is based on Waste Connections overall cost of fuel and petrochemical related products incurred on a corporate basis and designed for us as a company to achieve an acceptable operating margin.
Environmental and Regulatory Surcharge
Unlike the Fuel Surcharge, the Environmental and Regulatory Surcharge does not fluctuate monthly and is currently set at 17% of your invoice charge, excluding tax. This fee is in place to help us recover the ongoing and increasingly complex environmental and compliance costs associated with the high quality operation of all Waste Connections collection, transfer station, landfill, material recovery and waste-to-energy facilities on a corporate basis. Like the Fuel Surcharge, the Environmental and Regulatory Surcharge is not related to the specific costs of servicing your account, but on the costs incurred on all operations across the company so that we can achieve an acceptable operating margin.
The Administrative Fee on your bill relates to the costs associated with generating invoices, processing your payments and other transaction fees that may be associated with your account. The price of such fee is set so that it covers such costs and allows us to maintain a reasonable operating margin. The administrative fee is currently set at $8 per month.
The Container Maintenance Fee on your bill is a monthly amount that Waste Connections charges a customer to allow it to switch out a container, for any reason, for one of the same size once per year. If you wish to switch out a container more frequently or are not assessed a Container Maintenance Fee on your bill, you will be charged an Exchange Fee equal to the rate listed on your Service Agreement each time a container is switched at the service address site.
Canadian Fuel Surcharge Table
Calculation of Each Surcharge
Each of the different surcharges and fees will be shown as separate line items on your invoice. In some cases, we may combine the Fuel Surcharge and the Environmental and Regulatory Surcharge together and in each such case, the percentages of each component are simply added together to get a combined percentage that is applied to the total invoice amount, excluding tax. For example, in Canada , if the fuel component derived from the Waste Connections Fuel Surcharge Table is 15.08% (based on a Canadian Retail Price of $1.14 per litre) and the total invoice amount is $100, the total Fuel & Environmental charge would be $30.08 (15.08% plus 15.0%).
You should be aware that none of the fees described in this policy are taxes imposed by and submitted to a governmental agency. These are charges used to recover costs that Waste Connections incurs on a company-wide basis and to help us achieve an acceptable operating margin.
Changes to this pricing policy may be made at any time at the discretion of Waste Connections management team and as circumstances may necessitate. We will notify you of changes to our policy on your next applicable invoice (and at which time such changes shall be effective) and consent shall be deemed to be given upon payment of funds following such notice unless your service agreement expressly states consent must be provided for in a different manner.