Wednesday 23rd March 2011
It’s not all bad news
Simon Little, Sales and Marketing Director, Powerday looks at how to mitigate against rising waste management costs:
Many of you will know that fuel costs have risen sharply in recent months. The price of crude oil is now at a two and a half year high and prices look to remain high, given the circumstances in the Middle East and the UK’s increasing levels of duty. These inflationary pressures are real and will influence our pricing reviews that are ongoing.
The waste industry as a whole faces increased taxation with landfill tax set to rise by £8 per tonne on 1st April, taking the charge to £56 per tonne with further annual increases taking the tax level to £80 per tonne in 2014. And there’s VAT on top of that! However, it is not all bad news. Since the introduction of the landfill tax escalator, we at Powerday have always seen 1st April 2011 as a pivotal date where waste treatment, in the form of recycling and recovery, replaces landfill as the most economic form of disposal. Against these market conditions, we have continued to invest in the latest technology to maximise our recycling rates and to produce a refuse derived fuel which can be supplied to a number of energy producing plants. This means that we will not be passing on any landfill tax increases and moreover we are working with many clients to set fixed prices over a longer term. If this is of interest, we would be happy to discuss this with you.