Agenda item

Report attached

The JEC received a report advising them of the latest position regarding the

Residual Waste Treatment Contract, all other ancillary waste joint contracts and activities managed by the South Tyne and Wear Waste Management Partnership (STWWMP).

It was noted that the Competition and Markets Authority (CMA) has now released its final decision regarding Veolia’s acquisition of the SUEZ recycling and recovery UK business. As it did in its initial findings, CMA’s position remains that the two companies coming together in the UK would result in a lessening of competition in the UK waste and recycling market and that therefore, the SUEZ UK business should be sold in its entirety.

It was also reported that Veolia progressed the sale process of SUEZ recycling and recovery UK and agreed a deal in principle with Macquarie Group Ltd (Macquarie). However, New SUEZ was offered a Right of First Refusal (ROFR) to buy it back. The JEC also noted that New SUEZ confirmed their intention to purchase SUEZ in September 2022 and the sale is ongoing. The CMA are completing their investigation and New SUEZ are awaiting final approval and confirmation that the sale can be progressed.

The JEC also received an update on the 2022/23 EfW Service which highlighted that the plant continues to operate well. It was also stated that a VoC (Volatile Organic Compound) breach was experienced in August 2022 due to a gas bottle explosion in the furnace. Officers advised that this has been reported to the Environment Agency but a response has not yet been received.

A summary of the planned annual maintenance shutdowns was provided; it was explained that the business continuity plan during the shutdown period was submitted in October prior to the shutdown and SUEZ noted landfill may be possible but the plan is always fluid depending upon waste flows and plant issues experienced. The JEC were advised that the shutdowns are still ongoing but due to lower waste flows to date no material has been redirected to landfill.

From the report, an update on Reconciliation was provided. It was noted that the 2021/22 reconciliation review exercise is still currently in progress to determine the end of year credit/payment. It was reported that due to rises in energy prices the Authorities are due to receive an income share on the electricity generated by the EfW for this period.

The JEC were also advised that the ongoing COVID-19 coronavirus pandemic arrangements have meant that no further Community Liaison Group meetings have been able to be held. It was highlighted that this situation is being reviewed and that the group is promoted throughout the local communities via leaflets. The JEC also received an update on recycling; it was reported that contamination levels have generally remained at consistent levels in each partner authority since quarter one of this financial year.

The JEC congratulated officers on the successes reported; concern was also noted that contamination of recycling waste remains consistent despite increased communication with residents. The JEC also commended Suez for the work done at South Tyneside’s waste management site as summarised in the report; it was agreed that pressures at the site had been eased following the introduction of timeslots for residents.

The JEC were advised that whilst recycling performance is currently exceeding annual targets significantly it should be noted that recycling performance is subject to seasonality and reduces during the winter months. 

RESOLVED: (i) The JEC noted the report.