WRAP HAS PUBLISHED its annual Gate Fees Report, revealing that the average local authority fee is unchanged since 2011-2012.
The annual report provides insight into the alternative waste management market, and aims to increase price transparency.
A gate fee is a levy paid by a local authority to an MRF operator for processing its dry recyclables, or paid to a local authority by an MRF operator for the dry recyclables. Arrangements vary from one local authority to another, dependent upon contractual agreement.
Across the UK the range of MRF gate fees (-*£40 per tonne to £82) indicates substantial variation both across and within regions due to a variety of factors such as: value of materials, contract length, the quality and range of materials accepted, the size and age of the MRF, the collection system and the degree of local market competition.
Steve Creed, Director of Market Economics WRAP, said: “WRAP’s gate fees report provides a simple, accessible resource for the waste industry and local authorities. It is regarded as a respected source of information that helps organisations to make better informed decisions regarding the cost of waste management options open to them. Take MRF gate fees for example, while the median gate fee is £9 per tonne we know that around 40% of the local authorities surveyed receive income from MRFs for their dry recyclables rather than paying gate fees.
“This market has seen some volatility recently. Based on a small sample of contracts (10) struck in 2012 it seems that there has been a reduction in what some MRFs are paying local authorities for dry recyclates in the last year, due to a range of factors including lower materials prices compared to 2011. But the big picture trend over the last few years indicates a decline in MRF gate fees paid by local authorities partly as competition has increased.”
Other key findings include:
- The median OAW (open-air windrow composting) gate fee has fallen marginally since last year to £24 per tonne. The median IVC (in-vessel composting) median gate fee for green waste was found to be the same as that charged by OAW facilities. The most significant change in IVC gate fees has been the decrease in charges for food waste, which have decreased from a median of £49 per tonne last year to £39 per tonne this year.
- The median gate fee reported by local authorities for the treatment of food waste at AD (anaerobic digestion) facilities has remained unchanged since last year at £41 per tonne.
- The median UK gate fee charged to local authorities for the onward management of wood waste collected from Household Waste & Recycling Centres (HWRC) has risen marginally since last year.
- The median gate fee for landfilling non-hazardous waste has remained unchanged since last year, but the annual increase in landfill tax has meant that overall the cost of landfilling has increased by £8 per tonne.
- With the rise in landfill tax the median gate fees paid at EfW or MBT (Mechanical Biological Treatment) facilities are now cheaper than landfill.
- The range in gate fees presented for landfilling the three hazardous materials considered are broadly similar to those presented last year.