Metropolitan Waste and Resource Recovery Group

Summary

On 8 October 2021, the Metropolitan Waste and Resource Recovery Group (MWRRG) applied for revocation of authorisation AA1000451 and its substitution with a new authorisation (re-authorisation) to conduct a collaborative tender process to procure sorting services for commingled household recyclable waste collected from kerbsides. MWRRG is seeking authorisation on behalf of itself and 3 regional waste and resource recovery groups (regional WRRGs) (and any successor appointed for MWRRG and the 3 regional WRRGs), and a group of 27 metropolitan Melbourne councils and 8 regional councils (the Participating Councils).

In February 2020, the ACCC granted authorisation AA1000451 to MWRRG and 30 metropolitan Melbourne councils for 12 months to conduct a collaborative tender process for the supply of recycling sorting services and negotiate and execute contracts with suppliers, and 20 years to give effect to the contracts.

MWRRG applied for re-authorisation due to changes in government policy and in the make-up of the participating councils. The updated proposed conduct includes the establishment of a panel for suppliers of recycling sorting services to provide standing offers to councils who may choose to place orders with those suppliers.

MWRRG also proposes to manage a “common gate fee” (CGF) mechanism between the Participating Councils, where prices may be adjusted between the Participating Councils but each supplier would continue to be paid the same prices as agreed with MWRRG. The CGF mechanism is a more developed form of the Management Deed proposed in the original application for authorisation.

MWRRG sought interim authorisation to begin the tender process by 8 November 2021, and substantive authorisation for 7 years and 8 months (or alternatively, the same period of 20 years as granted in the original authorisation).

On 10 November 2021, the ACCC granted interim authorisation to enable MWRRG, the Participating Councils and 3 regional WRRGs to commence a tender process for the collective procurement of sorting services for commingled, kerbside recyclable material.

On 16 December 2021, the ACCC issued its draft determination proposing to authorise the proposed conduct for 7 years and 8 months.

On 18 February 2022, the ACCC released its final determination granting re-authorisation for the proposed conduct until 12 November 2029.

The ACCC’s final determination and a copy of the application for re-authorisation are available below.

Applicant(s)

  • Metropolitan Waste and Resource Recovery Group

Authorisation number(s)

  • AA1000581-1

Decisions