[BC] Contract price increase 20%

British Columbia

We have a 5 year contract with a company for garbage service. We hit the 1 year mark of the contract. The garbage company raised the rate by 20%. The contract specifies they can adjust the rate if their costs go up. I don't think their costs have gone up 20%. Cancelation is liquidated damages of 1 year of service.

This seems like a crazy way to do business.

What is the best way to approach this issue? Thanks for any thoughts.

Here is the text concerning rate adjustments:

"RATE ADJUSTMENTS garbageCompany reserves the right to adjust rates hereunder based upon increases in fuel costs, insurance rates, disposal facility costs and transportation costs due to a change in the location of disposal facilities, weight or volume of material disposed of by Customer, or contamination of recyclable material. garbageCompany reserves the right to adjust the rates to reflect the actual weight and (or) volume of the solid waste and recyclable material disposed by Customer exceed orginally estimated. Any terms stated in the Special instructions of this Agreement cannot be overridden the cost of increment by Government, Tax Revenue, or any out of control fee."

Note: Grammar mistakes not mine.