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WRAP publishes gate fee report

WRAP has published its annual report on gate fees charged for waste treatment, recovery and disposal.

The organisation sampled fees paid by local authorities to Material Recovery Facility (MRF) operators for processing dry recyclables or vice versa in 2012/13.

WRAP noted that local authorities who signed contracts with MRFs in 2012 received a median income of some £7 per tonne of materials, down from £26 per tonne the year before.

“This market has seen some volatility recently,” commented Steve Creed, director of market economics at WRAP. “Based on a small sample of ten contracts 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.”

However, he added that the figures suggested a decline in MRF gate fees paid by local authorities in recent years, partly as a result of increasing competition in the sector.

Other findings of the report include:

  • The median open-air windrow composting gate fee fell by £1 to £24 per tonne
  • The median in-vessel composting gate fee for food waste declined by £10 to £39 per tonne
  • The median fees charged to local authorities for the treating or disposal of wood waste collected from Household Waste & Recycling Centres rose by £4 to reach £30 per tonne
  • The cost of landfilling non-hazardous waste increased to £93 per tonne as a result of higher landfill tax, which rose by £8

Following increases in the landfill tax rate, sending materials to energy-from-waste (EfW) or mechanical biological treatment (MTB) facilities is now cheaper than using landfill, said WRAP.

The median EfW gate fee for facilities older than 12 years was £58 per tonne, and £90 for facilities built since 2000.

The median mechanical biological treatment gate fee stood at £76 per tonne.

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