The money will be passed on to council members of the authority by waiving the cost of waste disposal for the month of November for each of its constituent boroughs.
And, the authority has pledged more ‘windfall payments’ to come over the winter if power prices stay high.
The NLWA manages waste for seven North London boroughs and sends its residual waste to the publicly owned Edmonton EfW plant in Enfield.
Many plants generating electricity from waste have been able to capitalise on the price of energy in the global supply market being at record highs, though some claim they are tied in to long-term ‘fixed’ contracts, so the extent of the benefit is debated.
However, the NLWA said in a statement today that it is proposing that these “unexpected earnings be returned as a ‘windfall dividend’ to communities via their borough councils to help fund crucial services during the UK’s cost of living crisis”.
This is possible because NLWA is publicly owned, the authority says, so it does not pay “huge sums to private companies”.
Communities
NLWA chair Cllr Clyde Loakes said: “Rather than a private company earning large profits, north Londoners will benefit instead from a ‘windfall dividend’.
“During this extreme cost of living crisis and rising inflation, we’ve decided to act now to return this money to the public by helping to ease the monetary pressures on their local councils and their services.
“Wholesale energy prices are expected to remain high over the winter, and if that is the case there will be further ‘windfall dividends’ to come.
“This shows that the public ownership of utilities can bring direct benefits to communities, instead of just the shareholders of the big energy companies.”
Plant
The NLWA’s 500,000 tonne per year capacity facility has been operational since 1971 and plans are underway to redevelop the plant.
Councils will be looking to use this cash in a range of different local interventions to help protect some of our most vulnerable residents
At their next meeting on 31 October, NLWA Members will consider a recommendation to waive the cost of waste disposal for the month of November for each of its constituent boroughs: Barnet, Camden, Enfield, Hackney, Haringey, Islington, and Waltham Forest.
This will effectively deliver the boroughs a “windfall dividend”, the NLWA says.
Cllr Loakes added: “I expect councils will be looking to use this cash in a range of different local interventions to help protect some of our most vulnerable residents from the full impact of the cost-of-living crisis this winter.
“This might include retrofitting homes to help reduce household energy bills, which will also benefit the climate, and bolstering support for critical front-line council services and local voluntary and community organisations.
“The waiving of the November charge for waste disposal by NLWA will be designed to ensure councils benefit immediately, instead of waiting to introduce a complex new payment mechanism.
“While most of the increased earnings are due to the increase in electricity income, NLWA is also earning more from the selling of recycling collected across north London, such as aluminium and plastic, due to strong market demand for these commodities.”
LondonEnergy
NLWA became the 100% owner of LondonEnergy, the subsidiary which operates the Edmonton EfW plant, in 2009.
As the sole shareholder, NLWA says it “ensures that funds gained from electricity generation by the energy-from-waste facility are used to reduce the cost of waste disposal for north London residents, with monies instead spent on essential services for residents”.
Last month, construction began on the NLWA’s replacement for the current EfW facility, now Europe’s oldest (see letsrecycle.com story).
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