SWEEP-NET’s Fourth Regional Forum · SWEEP-NET’s Fourth Regional Forum Amman . 1 ......

Martin Steiner TBU Environmental Engineering Consultants (Austria)

► How to design a proper waste tariff ?

The 10 Golden Rules of Fee Making

SWEEP-NET’s Fourth Regional Forum

Amman

1

M. Steiner: “How to design a proper waste tariff ? The 10 Golden Rules of Fee Making“

Grant Applicants:

Technisches Büro

HA U ERUmweltwirtschaft GmbH A-210 0 Korneuburg, Br ückenst r aße 6

+ 4 3 226 2/ 6 2 223 www. bha uer . t t a

External Partners:

J. Galvydzio str. 3,

LT - 08236 Vilnius, Lithuania +370 5 274 54 87

+370 5 274 54 91

www.ekokonsultacijos.lt

Miloša Crnjanskog 38

BiH - 76 300 Bijeljina, Bosnia I Hercegovina +387 55 224 830

+387 55 202 085

www.ekodep.com

Project Grant 2011

Guidelines on How to design an appropriate waste fee

Principles, Practices and Applications of Waste Management Fees

November 2011

0

500

1972

1.500

2.000

2.500

3.000

3.500

year

1.000 t/a

Other Recycleables

Packagings ( Plastics , Metals)

Biowaste

Glass

Paper

Bulky waste

Residual MSW

Waste from households , total

Waste disposed of 1974

1982

1976

1980

1978

1990

1988

1986

1984

1992

1998

1996

1994

2000

1.000

kg/ inh .a

250

300

400

350

200

Case study Austria

„Disposal crisis“

44

Packaging Ordinance

(EPS Extended Producer responsibility)


Any system –

irrespective of its

development level –

must be financed…

but how ?

„Technical“ collection concepts

(and levels) are quite different…

Different situations in respect to collection frequencies…

Daily Collection from each Household Every week another type of waste


General Requirements on Fees

• Financing the entire Waste Management system

• Avoiding the avoiding of paying fees

• Directing people in the preferred direction…

• …and much more


ly

Waste fees must be administered, and understood… ´Definition of the Waste Tariff´


Table 1: Examples for annual MSW tariffs in Aleppo (Source: Implementing Regulations for Law No 49)

CategorySub-category &

Tariff referenceTariff (per year)

Household House(hold) 6

150 SYP

Commercial and tourism activities: Hotel 1 star, < 25 beds 7.800 SYP

Hotel 1 star, > 100 beds 10.200 SYP

Hotel 2 star, < 25 beds 21.600 SYP


Hotel 5 star, < 100 beds 97.200 SYP


Restaurant uncategorized 3.000 SYP

Restaurant Shawarma shop 4.800 SYP

Restaurant 2 stars, < 15 tables 15.300 SYP

Restaurant 2 stars, > 46 tables 25.500 SYP

Restaurant 5 stars, < 15 tables 64.800 SYP

Restaurant 5 stars, > 46 tables 64.800 SYP

3.000 - 20.000 SYP, depending on

size, features and location

Commercial and ´industrial´ shops in

Aleppo´s old city:

1st

Golden Rule: KISS – Keep it simply stupid !

Waste fees must be administered, and understood…

…are usually manifold.

Expectations to the features of a waste tariff…

Explaining a waste tariff…

…should not take longer than a match is burning.


Directing your customers in the preferred direction…

2nd

Golden Rule: Your fee model should support

the waste generator´s desired behaviour.


3rd

Golden Rule: Don´t try to create ultimate fee fairness

as such will never be achievable.

“I do collect separately, but my neighbour doesn´t…”

Cost of tariffs offering “the ultimative fee fairness” (individual measuring of volume, or weight) come up to min. 10, rather 15 % of entire collection cost.

4th

Golden Rule: Additional costs of some fancy measurement systems

are higher than individual savings.

So don´t apply them in your area of responsibility.

Reasonable (i.e. cost convenient) compromises

are available.

“Transponder”

“Banderole”

14

Municipal waste fee – „simple“ tariff types

Landlord

Residual waste

€ 3,99 € 4,24 from 2012

52 weeks

207,48 € per household

and year

Waste paper White glass Coloured glass

€ 0,00 € 0,00 € 0,00

Metals Plastics Biowaste

€ 0,00 € 0,00 € 0,00

Waste fee

Municipality

finances in addition to collection

services (of residual waste and

recyclables) other services like a

infoline, free delivery of compost,

etc.

Waste bag sold to the customer

at a price that reflects the entire tariff…

To what data refer a waste tariff to…

1. Tariffs per household

2. Tariffs per household, considering also number of persons

3. Tariffs depending on floorspace

4. Tariffs depending on volume

5. Tariffs depending on weight

6. Tariffs depending on value of property

7. Tariffs depending on distance to disposal

8. …and combinations thereof (usually 1/2/3 combined with 4/5):

Tariff types 4 + 5 fulfil the request of providing an incentive to support the

system´s policy (2nd Golden Rule), but:

A split-up of the fee in "basic (fixed)" & „top-up (variable) fee" is recommended.

Basic fee

top-up fee

in eg. Austria

usually

depending on

volume

≈ ⅔

≈ ⅓


2402 4 0

R.S.U.

Volume

(registered emptyings)

2402 4 0

R.S.U.

Volume

(provided)

2402 4 0

R.S.U.

US

Volume

(measured)

2402 4 0

R.S.U.

Weight

(measured)

Person Person

Innsbruck South Tyrol Kufstein Heidenheim Vienna

Person

m²

Area

m²

Area

One simple (but workable), and more sophisticated tariff types for Municipal Waste Management…

Volume

(provided)

2402 4 0

R.S.U.

Basic fee Top-up fee


5th

Golden Rule: The task “fee collection” is totally independent

from the task “waste collection”, but: No one else

than the public authority should collect the fee.

Who is doing what ? Beneficial synergies of public and private sector are always result of a proper distribution of their roles…

The public sector (Municipality, SWM Association…) should collect the fee… - Fewer default of payment - Financing of public unpaid

sidework can be secured - Securing the same price

for every customer, even for remote objects

- Securing a uniform waste management system in the area

6th

Golden Rule: You should collect one waste management fee only.

How does the money flow ?

The typical Central European set-up beyond larger cities

Municipality 1 Mun. 2 Mun. 3 Mun. 4

Waste Management Council

waste

fee

€ per

month

Private operator

Private collection companies

Waste collection (and similar services)

Waste disposal (operation of landfill…)

€ per t



7th

Golden Rule: Don´t mix up affordability

with your client´s reluctance to pay for your service

(willingness to pay).

Typical "daily life" expenses in Bijeljina (BiH)

referring to a 5 person household

€ 0

€ 100

€ 200

€ 300

€ 400

€ 500

€ 600

€ 700

Alkoh

ol

Typical

con

sum

er lo

an

Sm

oking

Hea

ting

(60

m2)

Mak

iato

Elect

ricity

Pho

ne

Insu

ranc

e & ta

x (c

ar)

Wat

er +

was

te w

ater

Was

te fe

e

Cost item

Eu

ro p

er

an

nu

m

About affordability…

8th

Golden Rule: Don´t mix up your client´s willingness to pay

with your own willingness to charge.

… and the preparedness to pay


Aleppo 2009: Four posters from the Public Awareness Campaign: “No comment…”

(i.e. the title of each poster with the name of the respective neighbourhood written below).

9th

Golden Rule: Ceasing the service does not build up

a pressure to pay the fee (as with water supply,

electricity, or telecommunication).

“If I don´t pay my telecom invoice, I get cut off…” Can we force customers reluctant to pay the fee by ceasing the collection service ?

10th

Golden Rule: It is no offence to collect the waste fee

together with the water or electricity bill).

The 10 Golden Rules of Making a Waste Fee

1. KISS Keep It Simple, Stupid

2. Your fee model should support the waste generator´s desired behaviour.

3. Don´t try to create ultimate fee fairness as such will never be achievable.

4. Additional costs of some fancy measurement systems are higher than individual savings. So don´t apply them in your area of responsibility.

5. The task “fee collection” is totally independent from the task “waste collection”, but: No one else than the public authority should collect the fee.

6. You should collect one waste management fee only.

7. Don´t mix up affordability with your client´s reluctance to pay for your service (willingness to pay).

8. Don´t mix up your client´s willingness to pay with your own willingness to charge.

9. Ceasing the service does not build up a pressure to pay the fee (as with water supply, electricity, or telecommunication).

10. It is no offence to collect the waste fee together with the water or electricity bill.


http://www.iswa.org/en/525/knowledge_base.html

Authors: Walter Hauer, Martin Steiner, Erich Vogel

Report published as part of ISWA´s Knowledge Base

Some contents of the presentations are taken from

The Book of Rubbish, www.sunnyarea.eu


http://www.sunnyarea.eu/

1

www.tbu-austria.com

Thank you for your attention !

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