Review of all Prices for 2005 to 2006

We have reviewed all our prices for the next 12 months and these cover all the services and disposal options we provide. Most take account of the new Landfill Directive and the changes these will bring through the year

To see them go to our Prices section on the website

Our comments on the main reasons for any changes are detailed below

Notes on Annual price reviews for 2005 to 2006

 While some prices remain the same, others have had to increase substantially to reflect the following costs which we are to incur: 

• Landfill tax increases if your waste has a portion of material that will need to go to landfill (less than 12% of what we bring in has to go to landfill due to the investments we have made in the last few years). The tax increases by £3 per tonne and landfill operators are also increasing their costs.
• Wessex water take all our treated effluents and whilst we remove most contaminants and biologically treat the waste we are still charged for some organic loadings that remain. The cost to us for this (which represents more than 10% of our turnover) is an increase of 14% following the recent Offwat price reviews
• The European Working Time Directive and increases in fuel costs affect transport. These will increase the costs for materials we send off our site. We collect small drum lots from customers and have included our transport rates for your information – these have only increased 3% on average.
• Our energy costs have increased by around 50% in the last 2 years and many of our processes require heat or significant electrical consumption (for example mixer tanks and centrifuging). We are considering a new major plant fuelled by some of the wastes,  which could generate all our energy. This would not happen until 2006 and the investment required is in excess of £1 million.
• Inflation has been around 3% in the last 12 months

 Even with all the above we are still able to absorb some of these costs due to the improvements and efficiencies. Our average price rise is less than 5% but in some areas is higher.

 We have rarely had to increase our charges during a year after our annual price review. However, we have 3 major pieces of legislation due to come in which may necessitate review in some areas later in the year. We have outlined them below and the types of materials they may affect. 

• Firstly the application of waste acceptance criteria may affect prices for some oil contaminated wastes,
• Secondly the Government is planning to replace the Special Waste Regulations in July with new Hazardous Waste Regulations. New costs that will apply to all hazardous wastes. More details on the proposed changes are available at www.defra.gov.uk
• And finally the implementation of the Waste Incineration Directive in December may affect the value of recovered oils and thus the cost for all oil contaminated wastes.

 10 March 2005