At a meeting next week, local councillors are gearing up to discuss critical decisions regarding waste collection services in Somerset.

Earlier this year, Somerset Council's current waste collections provider, SUEZ, revealed significant financial losses associated with its Somerset contract. The company has indicated that without increased payments, it may consider terminating the contract prematurely, despite the hefty penalties involved.

Each week, approximately 385,000 collections of refuse, recycling, and garden waste are conducted across the county, highlighting the essential nature of securing this frontline service with minimal additional costs.

In May, the council tasked officers with negotiating a settlement figure with SUEZ, to be evaluated alongside other available options and their respective costs and implications.

On 15th July, the Council's Executive Committee will convene to deliberate on three primary options: bringing the service 'in-house', initiating a new tendering process to find a fresh contractor, or agreeing to higher payments to SUEZ to continue their waste collection operations.

Documents released on Friday, 5th July outline that all proposed alternatives will result in substantial financial increments compared to current expenditure. The recommended course, supported by independent analysis, proposes augmenting payments to SUEZ for the remainder of the contract term, arguing that this approach would ultimately cost less than internalising the service or conducting a new tender process.

Even with the proposed increase, SUEZ is projected to incur substantial losses over the remaining six years of the contract, compounded by earlier financial shortfalls.

Opting for a settlement would mitigate the risks associated with service disruption that could arise from transitioning to a new provider or internalising operations, as highlighted in the report. The document acknowledges the operational challenges faced by SUEZ, including navigating the Covid-19 pandemic, a national shortage of drivers, and escalating inflation rates.

Councillor Dixie Darch, Lead Member for Environment and Climate Change, expressed frustration over the situation, stressing the necessity of ensuring uninterrupted waste collection services despite the financial constraints.

"This is an unwelcome position to be in, but all viable paths forward entail increased costs. The recommended approach represents the 'least worst' option," stated Councillor Darch.

The council initially awarded the current ten-year contract to SUEZ in April 2020, following a competitive tender process facilitated by the Somerset Waste Partnership. The contract, valued at approximately £24 million annually, includes robust governance and quality assurance measures supported by third-party technical expertise.

The full report can be found online.