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Are there financial penalties if the councils do not provide enough waste?No - The contract includes a requirement to make a guaranteed minimum payment to the contractor as if the Council had delivered approximately 80% of waste projected at the time of final tenders. There are no 'penalties' for failure to deliver this amount of waste although the Council may have to compensate AmeyCespa for loss of electricity revenues associated with any shortfall if the contractor is unable to secure alternative commercial or industrial waste to replace the Council's waste. AmeyCespa will have an obligation to source Third Party Waste (i.e. waste from parties other than the Council) if the councils can not provide the minimum tonnage they have guaranteed. Studies indicate that sufficient commercial waste will be available from local businesses, shops and offices to make up any shortfall but the Council's estimates of our own waste tonnages give confidence that we will not fall below the guaranteed level. |