Procedures for the formation of tariffs for removal of household waste

ETT 53729 – Kiev, Ukraine

25-26.11.2013

Christof DelatterAssociation of Flemish Cities and Municipalities

www.vvsg.beTel. +32 2 211.55.99

E-mail: christof.delatter@vvsg.be

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This Presentation

• Legal requirements• Charging to the public• Different nature of different costs• Management cost of a civic amenity site

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Legal requirements (1)

• European framework directive: obligatory implementation of the ‘polluter pays principle’

• Flemish legislation• Financing of household waste management is done through

form of municipal taxation• Municipalities have the obligation to calculate their tariffs,

based on the real costs for management of household waste• Central government can ask municipalities details about the

calculation• Municipalities have to take into consideration some obligatory

minimal and maximum tariffs

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Legal requirements (2)

• Costs that have to be integrated in the calculation:• Purchase, rent, distribution and maintenance of recipients, used

for waste collection (containers, rubbish bags,…)• Cost of doorstep collection (trucks, staff,…)• Treatment costs of the collected materials (minus the revenues

for some recyclables)• Investment, management and maintenance in the civic amenity

sites and other bring points for waste• Efforts to enhance waste prevention• Communication costs• Indirect costs: ICT-support, follow-up of complaints, overhead,…• Minus: subsidies from the central government and

compensations received within the frame of producers responsibility

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Charging to the public

• Fixed waste taxation:• Waste management tax per household per year• Fixed fee per collection

• Pay as you throw: more expensive for non recyclable• Municipality has some freedom in choosing the division

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Minimum and maximum tariffs to take into account

• Civic amenity sites

• Doorstep collection

• Only for P-A-Y-T

Fraction Minimum Maximum

Pure C&D-waste 0 €/kg 0,03 €/kg

Bulky waste 0,02 €/kg 0,3 €/kg

Fraction Minimum Maximum

Residual waste 0,1 €/kg 0,3 €/kg

Bulky waste 0,05 €/kg 0,6 €/kg

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Different nature of different costs (1)

• FIXED costs: are almost completely independent and not linked to the quantities of waste collected or treated, but there is often a link with the number of inhabitants

• VARIABLE costs: direct correlation between the quantity of waste produced by the inhabitants and the costs for municipalities

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Different nature of different costs (2)

FIXED COSTS ??? VARIABLE COSTS

• Purchase of recipients for collection

• Investment in civic amenity site

• Waste prevention efforts

• Communication

• Overhead

• Collection costs

• Management of the civic amenity site

• Incineration

• Recycling

• Composting

• Landfilling

LOCAL AUTHORITIES HAVE TO DECIDE WHAT THEY CHARGE IN A FIXED WAY AND WHAT IN A VARIABLE WAY (P-A-Y-T)

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Management cost of civic amenity site (1)

• Problem: how can you determine the management cost of a civic amenity site and allocate this cost to waste streams?

• Analysis done by Interafval• Detailed screening of 10 representative existing civic amenity sites• Operational parameters of 143 civic amenity sites• Definition of “reference” civic amenity site

REFERENCE civic amenity site: Blueprint of what a CAS minimally needs: infrastructure, staff (2.6 FTE), goods & services (operational costs)

NOT included: containers, transport, treatment, communication, PAYT-systems…

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Management cost of civic amenity site (2)

per CASOperational costsmaintenance 1.500,00insurance 285,00administration 1.450,00water, energy 2.500,00security 655,00inspection 150,00training 1.310,00overhead 10.674,68small materials 5.000,00Staffing 73.026,76Infrastructure 33.185,14Financial costs 10.507,28

Total cost 140.243,87

Cost after deduction subsidies 127.616,74

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Management cost of civic amenity site (3)

• Allocation of costs to the different waste streams based on 4 (combinable) methods• Weight ( € / ton)• Homogeneity (workload per waste stream)• Delivery frequency• Surface taken by each waste stream

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Management cost of civic amenity site (4)

• Effect on policy in Flanders:• Supported by flemish government (OVAM)• 2005: Ministerial Decree concerning financial compensation of

municipalities• Not all costs were accepted• Allocation of costs

• Infrastructure: proportional to the surface taken• Personnel: proportional to the workload per waste stream• Overhead cost of 10% was being added

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Management cost of civic amenity site (5)

• Financial compensation of municipalities in the frame of producers responsibility • Yearly compensation for all civic amenity sites

• Fixed: € / inh / year• Variable: € / ton

• Examples (without indexation)• WEEE: 0.2365 € / inh + 27.9 € / ton• Motor oils: 0.0506 € / inh + 98.95 € / ton

How to allocate costs for civic amenity sites to different waste streams covered by EPR15 -

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Web application costs civic amenity site

• User-friendly version of cost calculation model• No reference civic amenity site• Management tool

• Operating costs of civic amenity site?• Cost of collecting new/more waste streams?• Implementing pay-as-you-throw system?

• Output• Annual cost per site and per stream• € / ton / waste stream• € / inhabitant• € / square meter• …

16 - How to allocate costs for civic amenity sites to different waste streams covered by EPR

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