Gate Fees Report 2015

10th January 2017

WRAP’s eighth annual gate fees survey covers gate fees charged to local authorities in the UK for a range of municipal waste recycling, recovery, treatment and disposal options.

The aim of this report is to increase price transparency and, by improving the flow of information, improve efficiency in the waste management market.

Key points:
The median MRF gate fee is £6/tonne last year
In vessel composting (IVC) fees are unchanged, suggesting stability in the market
MRF gate fees are expected to increase into 2016

Overview

Overview

The 2015 Gate fees report comprises a summary report that outlines the key findings for 2015 and a full technical report where further detail on the 2015 gate fees is provided.

To complement these reports, information relating to the treatment costs for organic wastes supplied from commercial/industrial sources is available in a short abstract report. This short abstract report can be accessed with the full report below:

Register for summary report >>

Findings

Findings

  • The median gate fee paid by local authorities for MRF services is £6 per tonne, whereas in the previous year’s survey the median MRF gate fee was £10 per tonne. However, feedback from the waste management companies interviewed suggested a trend increase in gate fees in recent years at their MRF operations.
  • The range of MRF gate fees is much broader than the range associated with other facility types. This reflects the diverse range of services which fall into the MRF category, incorporating a range of different waste stream compositions, long contract gate fees agreed years ago, facility types, and revenue sharing arrangements. However, a large amount of variation still remains and this is reflected in the reported range of gate fees. Consequently, caution should be exercised when using a summary statistic such as the median MRF gate fee.
  • From the sample of usable gate fees, a total of 33 local authorities (40%) reported that they do not pay a MRF gate fee (i.e. the gate fee is £0 or negative). However, when haulage and revenue were accounted for this number rose to 38 authorities (46%). Some of these contracts were procured in the last 12-18 months, but the highest revenue for local authorities is typically achieved on older contracts, when market prices for materials were higher.
  • For the 21 contracts in the survey signed by local authorities in 2014 the median MRF gate fee is the same (£0 per tonne) as that for the 14 contracts signed in 2013. Based on feedback from respondents, future MRF gate fees will be affected by the declining value of materials, the increasing importance of quality and consequent increase in MRF operating costs, and contractors’ changing view of future market values for the materials (reflected in contract terms and conditions);
  • This year a number of gate fees were also received for treating residual waste at ‘dirty MRFs’ for which the median gate fee paid by local authorities is £84 per tonne.
  • The median Open Air Windrow (OAW) composting gate fee for green waste is £24 per tonne and unchanged from the previous two surveys, suggesting a degree of stability in the OAW market(albeit that this reflects a fall in real terms).
  • The median In-Vessel Composting (IVC) gate fee for mixed food and green waste is £46 per tonne, unchanged from the previous two surveys, suggesting stability in the IVC market. „ The median gate fee paid by local authorities for the treatment of food waste at Anaerobic Digestion (AD) facilities is £40 per tonne, unchanged from last year.
  • The median fee paid by local authorities for recycling and recovery of waste wood (all grades) collected from Household Waste Recycling Centres (HWRCs) is £35 per tonne, marginally higher than the £32 per tonne reported in the previous survey
  • The median gate fee paid by local authorities for waste treatment via Mechanical Biological Treatment (MBT) facilities is £88 per tonne compared to £84 per tonne in the previous survey.
  • The median gate fee at EfW facilities constructed prior to the year 2000 is £73 per tonne, an increase from the £58 per tonne reported in last year’s survey. The difference is potentially explained by the 67% increase in the number of gate fees received for pre-2000 facilities compared to last year’s survey. The median EfW gate fee for facilities constructed post 2000 is £99 per tonne as compared with £94 per tonne in the previous survey.

Related

Related

To find information related to that contained in this report, please use the following links:

Gate Fee Report 2016 >>
Gate Fee Report 2014 >>
Gate Fee Report 2013 >>
Gate Fee Report 2012 >>
Gate Fee Report 2011 >>

Where next?

Want to know more about gate fees in recovered materials markets? Take a look at our reports, guides, tools and case studies for further information:

Reports >>
Guides >>
Tools >>
Case studies >>