The conclusions of the OFT market study into organic waste are a victory for
common sense. Having initiated the proposals to Ofwat to widen their
access to unregulated organic material, the water companies were
correct in assuming that there would be significant environmental
benefits. However it possibly came as a surprise that this has initiated a far more interesting debate focussed on the logic of retaining sewerage operations within the Regulated framework at all. The OFT study suggests that inter company transfers of sewage would prove logical , particularly given the background Ofwat regime which fosters capital investment in infrastructure at the expense of more innovative or competitive approaches within the existing geographic catchment basins.
More importantly the treatment of sewerage is seen as a core activity for water utilities, but the OFT report rightly recognises that this scrap "carbon" load is relatively minor against the wider market opportunity of the totality of UK waste arisings - a conclusion missed in the past within the utility cultures of the water sector.
The conflicting regulatory approaches between those (driven by the Water Act and the Environmental Protection Act) reinforce those cultural blocks against economic logic, and the planning system merely reflects these mistaken historical perspectives.
Quite rightly the OFT emphasise that in moving forward its recommendations for wholesale cultural, technological and statutory review need to be considered as a single package rather than one for non market focussed utilities to cherry pick from their existing position of strength, at the expense of more commercially and in some cases environmentally savvy waste carbon competitors.
If adopted perhaps we can realise a genuinely efficient waste carbon management infrastructure in the UK through the important conclusions in this Report.
Peter T. Jones OBE is was years a director of waste management company BIFFA Limited for 20 years, and is currently chairman of Waste2Tricity and a well known public commentator on waste issues, as well as a member of various advisory bodies created by Defra, BERR and the Mayor of London.
Also Read
OFT Study into Organic Waste Seeks Increased Competition
Following a recent market study, the UK's Office of Fair Trading (OFT) has made recommendations intended to promote increased competition and efficiency in the treatment of organic waste.
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