Proposals to change subsistence fees for materials facilities
Proposal to change the annual subsistence charge for material facility operations
Charges applicable under the 2015 Code
These can be found in the Environmental Regulation (Scotland) Charging Scheme 2018. To recover our costs under the 2015 Code, there are two activity component charges included within Table 1 of the charging scheme:
- Annual subsistence activity charge – this is an additional charge applied to in-scope material recovery facility operations (SEPA reference number 12610). This is Subject to an environmental component.
- Additional Recovery Costs (ARC) activity charge – this is an additional charge applied to authorised waste site operations (SEPA reference number 12600).
Under the 2015 Code, the annual activity charge applied to operate a material recovery facility is £3,056, and the ARC charge applied to authorised waste sites is £189. There are over 1,000 authorised waste site operations in Scotland. These charges are applicable to the 2024 to 2025 financial year.
More information can be found here: Charging schemes and summary charging booklets.
Charging proposal under the New Code
Compliance with the 2015 Code is a condition of an authorised material facility operator’s waste management licence and/or PPC permit, or exemption from the requirement to have a waste management licence. In line with proposed changes to how we will charge for regulated activities (as part of the Integrated Authorisation Framework), a requirement to comply with the New Code is also expected to be a condition of an in-scope material facility’s authorisation under the Environmental Authorisations (Scotland) Regulations 2018. More information on these changes will be available on our consultation hub.
We are responsible for enforcing the 2015 Code and the New Code is regulated by SEPA. Experience under the 2015 Code has shown the value of how we deliver a programme of data checks, on-site auditing and sampling to determine whether operators are compliant, and we intend to continue this work under the New Code. In addition, the New Code increases the required sampling frequency for input sampling, introduces new material categories to be sampled and reported and brings some bulking facilities and transfer stations into scope. The enhanced sampling and reporting requirements are set out in Scottish Government’s Code of Practice on Sampling and Reporting at Materials Facilities.
To determine the appropriate level of charge necessary, we have calculated the time taken to audit data returns, conduct site audits and sampling analysis at facilities, to check data quality and help determine compliance with the New Code.
What's included in the subsistence charge?
We propose to no longer charge the additional recovery cost to authorised waste site operations which are not regulated under the New Code and place the full cost of regulation onto those material facilities directly regulated under the New Code. Therefore, we propose increasing the annual subsistence charge for operating a material facility to £12,539 from 1 April 2025. The charges are set out in the table below.
Charging changes:
| SEPA reference | Legal description | New legal description | Current charge under the 2015 Code | Proposed charge from 1 April 2025 under the New Code |
|---|---|---|---|---|
| Band 0 | Application for WMA: Storage and treatment of waste which includes the operation of a MRF subject to the statutory Code of Practice. | Application: Storage and treatment of waste which includes the operation of a MF subject to the statutory Code of Practice. | £0 | £0 |
| 12610* | WMA: Storage and treatment of waste which includes the operation of a MRF subject to the statutory Code of Practice. | Storage and treatment of waste which includes the operation of a MF subject to the statutory Code of Practice. | £3,056 | £12,539 |
| 12600 | WMA: Additional recovery costs. | WMA: Additional recovery costs. | £189 | £0 |
*This charge will remain subject to an environmental component.
Retail Price Index (RPI) increases
Each year SEPA has the ability to increase charges up to (and including) the Retail Price Index (RPI) in line with increases in the Office for National Statistics measures of inflation as at 30 September in the immediately preceding year.
Increases beyond RPI would only occur after we have consulted on such changes and subject to approval by the Scottish Ministers.
The charges in this consultation would be subject to this potential RPI increase.
How have the charges been calculated?
We want to be open about what we charge for, what we do not, and how these charges will be applied. This consultation provides you with the opportunity to give your views on the proposed charges applicable to facilities regulated under the New Code. These charges must also be agreed by the Scottish Ministers. The charges outlined in this consultation are based on how we intend to assess compliance with the New Code.
Whats not included in the charge?
The activity component charge (SEPA reference number 12610) applied to facilities in-scope of the New Code will make up one part of the total annual subsistence fee that will be charged to these facilities. For full details please see our charging schemes and associated guidance which are available on our website.
Our charges do not include implementation costs, relevant to the New Code, which have to be borne by SEPA, including development of guidance, digital reporting systems, staff training, purchase of sampling equipment and liasing with stakeholders.
Interim arrangements
To align with the start of the financial year, we propose implementing the new charge from 1 April 2025. Prior to this date, the existing material facilities charges set out in the Environmental Regulation (Scotland) Charging Scheme 2018 will apply to sites in scope of the 2015 Code. The charges are set out in the section 'Components of the new charging scheme' below. Facilities in scope of the New Code but not in scope of the 2015 Code will not be charged for Material Facilities regulatory work until 1 April 2025.
We expect that a small handful of operators currently undertaking activities under paragraph 11 or 17 exemptions from the Waste Management Licensing Regulations (Scotland) 2011 may come into scope under the New Code. Operators undertaking these activities will have to comply with any relevant obligations under the New Code, but it is proposed that these activities will not be charged for regulatory work until any such sites become authorised under proposed changes to the Environmental Authorisation Scotland Regulations.