The contract extension was confirmed at a cabinet meeting on 21 September.
First signed in 1998, Suez’s 25-year deal included the operation of an energy from waste (EfW) plant in Huddersfield and was due to expire in two years.
The council said the interim extension would allow Kirklees to wait for the publication of the Environment Bill, and word of any funding that might be available to support service delivery changes. The council says it would begin procuring a permanent longer-term contract once this was clear.
Extension
Exact details of the extension, such as its value or duration, were not made public due to being “commercially confidential”. And, when contacted by letsrecycle.com, a spokesperson for Suez said they could not comment as they were “still in negotiation”.
We’re impatient for change and we want to begin by making a difference now– Cllr Will Simpson, cabinet member for culture and greener Kirklees
In terms of service changes, the arrangements would see the addition of plastic pots, tubs and trays to green recycling bin collections and longer opening hours at household waste recycling centres (HWRCs).
Suez will also bring the ‘hand-back arrangements’ for the council’s waste assets, including the EfW plant, up to “the standards of modern contracts”.
Cllr Will Simpson, cabinet member for culture and greener Kirklees, told the council: “We’re now nearing the end of the 25-year contract that was signed with Suez in 1998. At the time, it was visionary in terms of what it delivered for us, and it has been one of the cheapest waste contracts in the country for our residents. But, times change, and what we want to deliver has changed as well.”
He added: “We’re impatient for change and we want to begin by making a difference now. That’s why I’m pleased to be bring forward a new interim agreement with Suez. This will mean that we’re delivering early on some of our ambitions, creating a more flexible agreement, and putting ourselves in the best possible position for procuring our new contract.”
Procurement
In a report, Nigel Hancock, programme manager at the council, said Kirklees was waiting for the publication of the Environment Bill regulations, and word of any funding that might be available to support service delivery changes, before procuring a permanent new contract.
Mr Hancock said: “Any changes implemented too early would potentially not qualify for government funding.”
He said the interim arrangements with Suez would “help the council with its transition from its current waste disposal services to the requirements of national government”.
EfW
Representing an estimated population of nearly 440,000, Kirklees council had a household waste recycling rate of 26.7% in the 2019/20 financial year.
Suez’s contract covers the operation and maintenance of the EfW facility, a material recovery facility (MRF), two transfer stations, five HWRCs, and two closed landfill sites. Ownership of these facilities returns to the council once Suez’s contract expires.
The EfW facility can process up to 130,000 tonnes of waste to provide electricity for up to 15,000 homes, Mr Hancock said.
He added that the interim contract arrangements would “create the stability needed to deliver a successful district heating network scheme”, with the EfW facility a critical asset in its development.
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