Statement regarding excess weight fees following media article

Tags: CWY
Highlights

Today the Australian Financial Review published an article titled ‘Cleanaway did not disclose faulty weight scales to customers’. In response to this article Cleanaway would like to provide some clarification about excess weight fees.

Cleanaway’s standard practice when entering into contracts with customers is to agree an estimated weight based on the waste to be collected. The estimated weight is then included in the contract and the service price is charged based on that estimated weight.

Charging for excess weight is common for the waste industry to cover the cost of disposal for the weight above the agreed amount.

From its introduction in 2017, Cleanaway provided customers a buffer of 20% above the contracted weight, and only charged excess weight fees when the actual weight was greater than the buffer –as measured by the scales on the collection vehicle.

In 2018 Cleanaway was contacted by the National Measurement Institute (NMI) as part of an industry-wide investigation and not directly relating to faulty scales, as was reported.

Following a review process Cleanaway ceased charging excess weight fees on vehicles that did not have NMI certified scales.

Cleanaway began a program to install NMI certified scales in front-lift vehicles and excess weight fees were reintroduced.

During this time Cleanaway undertook a campaign to call customers with heavy bins to adjust their service to better align the actual weight of their bins with the contracted weights.

For further information please contact:

Mark Biddulph
Head of Corporate Affairs
Telephone: +61 499 332 601

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