The waste management fees in Norwegian municipalities have steadily increased in recent years. Since 2019, the standard fee has increased by an average of 20 percent. An important reason for the recent increases is the rise in collection costs. Fuel expenses and higher prices for vehicles and add-ons have increased the costs of all types of transportation services in recent years. When comparing the cost index for waste management services with the general price inflation and the growth in standard annual fees, it is evident that the growth in the waste management index from 2020 is higher than the consumer price index and the growth in waste management fees.
A significant component of the waste management index is also the wages of waste collectors. Norwaste is aware that challenges in recruiting personnel have led to this cost increasing more than typical wage growth suggests in many municipalities. It is when challenges arise in waste management that costs soar, both in contract tenders and in municipalities with self-operation.
Cost drivers are lining up
There are several drivers for further cost growth within municipalities' mandated tasks. Recently adopted requirements in the waste regulations chapter 10a regarding sorting of plastic waste and food waste will particularly lead to increased costs in municipalities that have not yet implemented collection schemes for these fractions. Requirements for sorting rates for both fractions increasing to 70 per cent by 2035 mean that several municipalities, including Oslo, will likely have to change their waste management systems to remove more waste from residual waste.
Oslo, along with several other municipalities, is planning the construction of central sorting facilities. Several municipalities and municipal companies are also actively working to facilitate waste reduction and increased reuse. The Norwegian Environment Agency has also announced requirements for collection schemes for glass and metal packaging, source sorting of textile waste, and increased source sorting requirements for leisure homes.
Collectively, this will contribute to increased sorting of household waste and national goal achievement. The challenge for municipalities is that the cost growth this entails coincides with increases in other municipal fees and coincides with general price increases and reduced purchasing power for large parts of the population. Reputation surveys show that support for municipal waste management has been high in Norway for many years. This trust is important to garner high support for the effort around source sorting.
Where can savings be made?
Norwaste has conducted surveys of waste management services for several municipal companies over the past year. The work shows that there are significant potentials for cost savings and service improvement in many areas. Often, it involves achieving better utilization of the resources available, primarily vehicles and waste collectors. Proper production, evenly distributed between vehicles and waste collectors, is important. To achieve improvements, it may sometimes be enough to use resources differently, but there may also be a need for changes in route planning. When Norwaste carries out such assignments, we will demonstrate through calculations how different operating arrangements affect costs. We also provide advice on the future composition of the vehicle fleet, allowing companies to plan future purchases.
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