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Average materials recycling facility gate fee is £9 shows WRAP report

Date: Tue, 20 Aug 2013 | Author: Paul Sanderson

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WRAP has published its annual Gate Fees Report that demonstrates the median gate fee for a materials recycling facility paid by local authorities is £9 per tonne.

However, there is substantial variation with some local authorities receiving up to £40 per tonne from MRFs for their material, but some paying a gate fee of up to £82 per tonne.

This variation is down to the value of the 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.

WRAP director of market economics Steve Creed said: “WRAP’s gate fee 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 per cent 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 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.”

The median gate fee paid by local authorities for the treatment of food waste at anaerobic digestion plants has remained unchanged at £41 per tonne.

For open windrow composting, the gate fee has fallen marginally since last year to £24 per tonne, while in-vessel composting has dropped from a median of £49 per tonne last year to £39 per tonne this year.

While landfill remains unchanged at £21 per tonne for non-hazardous waste, the impact of an £8 increase for landfill tax has pushed up the overall price to a median of £93 per tonne.

The median for energy from waste plants was £58 per tonne for pre-2000 facilities and £90 per tonne for post-2000 facilities.

While for mechanical biological treatment, the median gate fee was £76 per tonne. 

Category: Recycling
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