
THE national consumer watchdog is inviting submissions from interested parties to respond to its statement of issues relating to a waste-to-energy (WtE) facility which the cities of Swan, Kalamunda and Shire of Mundaring are planning to work with when it becomes operational.
According to the Australian Securities and Investments Commission (ASIC) the taxpayer-backed WtE plant went under administration and receivership on October 28, 2024.
Last week the Australian Competition and Consumer Commission (ACCC) said it was concerned about Acciona’s proposed acquisition of the East Rockingham WtE project.
The ACCC said Acciona owned 10 per cent of the WtE project and was also the creditor, engineering, procurement and construction contractor.
ACCC commissioner Philip Williams raised concerns about competition because Acciona was also the owner of WA’s only other WtE facility located in Kwinana.
“The proposed acquisition removes competition between the only two WtE facilities in the Perth and Peel region of Western Australia,” he said.
“We are concerned that Acciona would be able to increase prices or reduce service quality at the East Rockingham and Kwinana WtE facilities following the proposed acquisition.”
In Swan confirms EMRC exit leaving two members Swan, Kalamunda and Mundaring said they would direct their waste to the East Rockingham facility when it was operational, following their move away from landfill.
Echo News asked the City of Swan whether it could guarantee the WtE facility would remain more cost effective if the project was to be acquired by a different company.
“The receivers are conducting a sale process in respect of the sale of the companies responsible for the development of the East Rockingham Waste to Energy Project,” Swan Mayor Tanya Richardson said.
“Acciona remains engaged to complete the construction and commissioning of the project.
“The city is confident that the cost effectiveness of the project will remain the same.”
Mrs Richardson said using WtE was about 10 per cent less expensive for the city compared with landfill.
“Its cost effectiveness is expected to increase as the landfill levy continues to rise.”
Kalamunda Mayor Margaret Thomas said any changes to ownership or the structure of the facility would be managed through existing contractual arrangements.
“It would be speculative to comment on future pricing, however the city will continue to act in the best interests of ratepayers and adapt as necessary,” Ms Thomas said.
She said the facility’s administration and receivership were operational matters for the owners and administrators.
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“We continue to monitor the situation closely and will work with any future operator to ensure the best outcome for our residents.”
Mr Williams said a substantial amount of time, money and regulatory approvals was required to establish a WtE facility.
“This means that no other WtE facility is likely to become operational in Western Australia within the next decade.”
Acciona Australia and New Zealand chief executive Bede Noonan said its proposed acquisition of the WtE facility would bring greater competition in the waste sector by providing an alternative to landfill, giving councils greater choice.
“Acciona always takes a collaborative approach and if we were to acquire the facility we would be entering into open discussion with councils with a view to long-term mutually beneficial partnerships,” Mr Noonan said.
Submissions to the ACCC close on July 31 and the watchdog plans to announce its findings in September.
Ms Thomas said the city was reviewing the statement of issues and the impact a proposed acquisition would have on waste management but that the city would not disclose the details of any submissions it may provide.
The Shire of Mundaring declined to comment.