Authority to investigate competitive situation in waste collection
The Competition Authority has initiated a competition analysis focused on identifying possible issues in organized municipal waste collection and management, including the pricing of additional services related to organized waste collection.
According to Kadri Lepikult, head of administrative proceedings at the Competition Authority, waste management in Estonia is seeing significant changes, in particular in relation to the transition to an environmentally sustainable and circular economy. Which is why it is essential to ensure effective and robust competition, which will allow businesses to operate more efficiently and with lower costs for consumers.
In recent years, the Competition Authority has repeatedly handled complaints concerning organized waste collection. As a result, the authority has been monitoring changes on the waste collection market and has observed that the market has become increasingly concentrated, with fewer companies engaged in organized waste collection. Also underway is a large-scale waste reform – the Ministry of Climate is currently working on drawing up a bill of amendments to the Waste Act, the Packaging Act and other laws, with planned changes slated to take effect in 2025. Since these changes will also impact competition, the Competition Authority has decided to focus more attention on the waste sector this year.
In addition to the general market situation, the analysis will also address the pricing of additional services related to organized waste collection, with the aim of providing market participants with recommendations for adhering to competition rules.
Over the past decade, the Competition Authority has conducted numerous supervisory procedures specifically due to the implementation of unfair pricing practices for additional waste collection services. The authority has received complaints and initiated procedures this year as well concerning the pricing of additional waste collection-related services, such as the manual handling of trash cans and the replacement of bio-bags.
In 2013, for example, the Competition Authority found that Ragn-Sells AS had set an unreasonably high fee for opening gates; the next year, the authority determined that Eesti Keskkonnateenused AS had likewise set an unjustifiably high price for the same.
In 2017, it was revealed that Ekovir OÜ had implemented an unreasonably high fee for relocating trash cans. More recently, at the end of 2023, the authority also found that Ragn-Sells had set an unjustifiably high price for the manual handling of trash cans in Pärnu's waste collection zones; the company reduced the price of this service as a result of the supervisory procedure.
The Competition Authority thereafter mapped out the prices of additional services in the country's other waste collection zones. This price survey resulted in both Ragn-Sells and Ekovir reducing the price of manual handling services in a total of 12 waste collection zones.
Currently, a supervisory procedure is also underway against Eesti Keskkonnateenused AS, likewise regarding the price of manual handling; pricing for this additional service is under review in 16 waste collection zones.
As part of its analysis, the Competition Authority plans on making recommendations for improving the competitive situation within this year, taking into account the changes tied to Estonia's waste reform. This analysis is expected to be completed by the fourth quarter.
The Competition Authority conducts state supervision in the fields of competition, electricity, natural gas, district heating, postal services, public water supply and sewerage as well as railways, aviation and ports.
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Editor: Mirjam Mäekivi, Aili Vahtla