Earlier quoted context omitted.
Some government agency could be doing the escrow, at no charge to the company.
There is still a process cost to participate in any escrow process, both on an initial and on-going basis. (That's before the blindingly obvious observation that even something provided by the government at no cost at point of use has a cost which is ultimately borne by the people.)
The second year there is much less work but they double the cost. You go along with that as it takes a lot of work on your part to engage a new escrow firm from scratch.
The next year they double it again. It's still demanded by your large corporate customers and you try to pass on the costs but they don't want to pay it.