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Regional operators will be able to update waste removal tariffs. How will this affect Russians' wallets?
The Russian Environmental Operator (REO), which is responsible for the country's municipal waste management, previously told waste collection operators that existing waste collection fees were insufficient. This was due to rising wages, rising fuel costs, and the cost of garbage trucks. The company noted that in the previous operator's cost structure, wages, equipment upgrades, and other costs accounted for 31%, while waste collection costs accounted for 69%. REO recently reported a 37% increase in these costs. Business leaders are now advocating for higher rates, saying local operators will have to take out loans for operating activities.
To address this issue, a change in state legislation was approved on October 1, allowing the operating costs of charging stations to be included in tariffs. Only companies that have proven their ability to sort 100% of current or future incoming waste can do so.
"This will allow us to significantly reduce the costs of regional operators for the removal of solid municipal waste," said Dmitry Patrushev at a meeting on the implementation of the reform. "We expect that these changes will have a positive impact on the financial situation of the regions. operators," he said. in the field of solid municipal waste (SMW) management.
A shortage of garbage truck drivers has led to a 37% increase in waste collection costs for local operators.
The costs of waste management operators have increased this year due to a shortage of garbage truck drivers and a sharp increase in the cost of equipment (related to waste management), as well as a significant increase in key rates and inflation, explains public adviser. Analytical support for the work of the Council under the Ministry of Construction, Deputy Director for Legal Affairs and the Federal Plan of the REO Alexey Makrushin. These additional costs will in any case have to be taken into account when setting tariffs, but according to the current rules, this should happen in 2026, and according to the new rules, a limited number of companies will be able to take them into account even earlier, in 2025.
The second innovation is the ability to take into account the cost of waste transfer stations when setting tariffs. "At the transfer station, waste is transferred from garbage trucks to larger vehicles, which significantly reduces transportation costs," says Makrushin.
But it is necessary to take into account the costs of operating gas stations at rates that were previously impossible. Eliminating these shortcomings will allow such facilities to be built and will lead to savings in waste handling costs in general, he added.
Vladimir Lifantyev, a member of the Public Chamber of the Russian Federation, notes that most regional operators already use transfer or sorting stations. In Omsk, there are two transfer stations from which waste is taken to the landfill. According to experts, the spread of such a practice may be relevant, for example, in Dagestan, where there are many mountain villages and where garbage trucks travel hundreds of kilometers to the nearest landfill. On the other hand, the emergence of new temporary waste storage sites will not please residents of nearby settlements, he added. "I do not think that this will have a big impact on tariffs," says Lifantyev.
In any case, according to Makrushin, the growth of housing and communal services tariffs is limited by the maximum index, and the resolution will not have any effect on its value. This means that consumers will not suffer in any way.
Sodnom Budatarov, director of the Circular Economy Research Institute of the National Academy of Economic Management under the President of the Russian Federation, said that tariff increases due to such innovations are inevitable. It is unlikely to be harsh. The costs of local operators will most likely be spread over three to five years, and in many regions, mechanisms for “compensating for loss of income” will be used to mitigate this effect, he says. The expert noted: “Unfortunately, a landfill model is being created that is disadvantageous for society and the country, where tariff increases are natural.” Solid waste removal will decrease, not increase.”