Data from a survey of local authorities shows that median gate fee prices for energy from waste contracts in 2018 were £89 a tonne, up £3 on the year before.
Waste management firms have concurred with the gate fee numbers and said that price rises for local authorities in the future will centre on inflation increases.
The figures have been produced by Anthesis for resource charity WRAP’s annual markets report covering the calendar year 2018. They show that despite the £3 rise derived as the median figure for all plants last year, EfW gates fees have actually fallen by £5 or more since 2014.
Local authority EfW contracts will rise by inflation
Inflation
The report notes: “Discussions with the waste management companies confirmed the figures generated by the survey, and that the main impact on local authority gate fees now all of the local authority dedicated PFI capacity has been delivered, will be contracted inflation increases.”
The report shows that EfW gate fee prices per tonne in 2018 ranged from £44 up to to £125. Older pre-2000 EfW plants were charging as little as £54 per tonne (based on the median data figure) while newer post-2000 plants were charging £92-93 a tonne (median).
However, charges generally at older plants were £65-70 while newer plants had gate fees of £85-90; (numbers based on the mode number, which is the value that appears most in a set of data).
Plateaued
WRAP notes: “For post-2000 facilities, median gate fees appear to have peaked at £100/tonne in 2014 and have plateaued at £90-95 since then.”
Anthesis carried its research with input from local authorities and the waste management sector. The full Markets report which looks at gate fees for MRFs and other facilities can be seen at www.wrap.org.uk/gatefees2019
Note – definitions:
The mode is about the frequency of occurrence and is the gate fee range (in £5 increments) which received the most responses in the survey.
The median is the middle value in a data set.
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Source: letsrecycle.com Waste Managment
