An analysis by the Estonian Competition Authority shows that competition in the Estonian waste management sector has deteriorated in the last four years. There are only five waste collection companies in Estonia. According to the analysis, the current tendering procedures are too complex and risky for businesses.

"That has now led to some operators deciding not to participate because the risks are too high for them. And the second risk is that they have deliberately offered too low a price and then tried to compensate or raise it in some way during the fulfilment of a contract, or made concessions when it comes to quality," said Kadri Lepikult, head of administrative proceedings at the Competition Authority.

Lack of choice can lead to higher service prices for consumers, the analysis notes. Currently, local authorities sign a concession contract for up to five years, under which a company is given responsibility for both waste collection and treatment services.

"Yes, [companies] can come back later and ask for more [money], but the main problem is that we still don't get transparency, we don't really know at what cost what activity is being done. It is also a complete black box for the citizens of Tallinn, they don't know what the price is for transport, what the price is for handling and how the price is determined," said Tallinn Deputy Mayor Margot Roose (Eesti 200).

With the proposed waste reforms, waste management will become municipality-centered, meaning municipalities will be able to organize the calculation and collection of waste fees themselves. Procurement for waste collection and treatment will be separated, which should bring new service providers onto the market. However, according to Argo Luude, CEO of Eesti Keskkonnateenused (Estonian Environmental Service), the change from the current system, where waste transport companies is replaced by the municipality, will lead to higher prices.

"The price will definitely go up for the consumer, there is no question about it. If anyone says anything to the contrary, they are just talking rubbish. It is written into the law or into this draft that the municipality can add another amount – up to 100 percent – to the price of the transport and handling contract," Luude said.

"It's very difficult to compare this because even today people have very different waste bills. What the calculations show, and what we can guarantee, is that for the average household that sorts well, the waste bills will be around €3 – 5 per month," said Ivo Jaanisoo, deputy secretary general at the Ministry of Climate.

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