WRAP recently published the latest Gate Fees Report, the 16th iteration of this study. The survey captures gate fees charged to Councils across the UK from material recovery facilities (MRF), in-vessel composting (IVC), anaerobic digestion (AD), energy from waste (EfW) and non-hazardous landfill facilities.
We received responses from or on behalf of 62% of Councils across the UK and remain very grateful for the time taken to complete the survey, enabling us to represent your experiences and insights as well as costs.
The survey reveals an increase from £95 per tonne in 2021/22 to £103 per tonne for the cost of residual waste treatment via EfW and very limited or no changes to the cost of treating mixed food and garden waste via IVC (£54 per tonne) and sending waste to non-hazardous landfill (£28 per tonne [excluding landfill tax]).
One of the most significant changes observed concerns the gate fees for food waste treated via AD. The latest survey reveals a median gate fee of £13 per tonne compared to £30 per tonne in 2021/22. Negative gate fees, where Councils receive an income for food waste delivered to AD plants, appeared more frequently than observed in previous surveys. Indeed, for AD contracts commencing since 1st April 2022, the median average outlines an LA income of £15 per tonne. Caution should be exercised however as this captures a very limited number of ‘new’ contracts and these values may be reflective of a very particular set of circumstances at the time of survey, including high energy prices obtained for AD outputs and a limited supply of input material close to existing plants. WRAP will be using the next survey to test how anomalous these figures are, and Councils should be wary of using the latest data in isolation as part of any procurement and service modelling.
The factors that influence gate fees for dry recyclables reprocessed at MRFs, and the subsequent range of gate fees recorded, remains very broad. Quantifying the impact of specific variables on the cost of MRF reprocessing in isolation is challenging but the survey provides useful context for Councils. The trend for contracts with risk share mechanisms, where LA costs are influenced to some degree by material quality and commodity values, continues: in 94% of LA contracts with such a mechanism, the LA assumes more than 50% of the risk share. As collection services evolve, more Councils have confirmed an ability to add new materials to their reprocessing contracts (up from 36% in 2021/22 to 47%).
Inflationary increases in MRF gate fees observed at the time of the last survey were in part generally offset by buoyant commodity prices, and we’re keen to explore the impact of reduced material values over the past 12 months as part of the forthcoming survey. MRF operators continue to value high quality material which should remain a priority for Councils. A significant proportion of MRF contracts come to an end in the next 3 years (78%, although extensions may be permitted) and Councils should remain engaged and aware of emerging requirements that could impact future contracts.
A huge thank you again for your support which enables us to represent your current costs and experiences and also identify emerging themes where further work may be needed. One such area is WRAP’s work with MRF operators to identify and mitigate potential bottlenecks in reprocessing capacity. Planning for the next survey starts now and we always welcome your views (LA-recycling@wrap.org.uk).
The WRAP webinar on the latest Gate Fees Report was held 28 Sept, a recording will be available here.
