Variables

Observations

Default Value/Range

Third Party in come

Stage 2

Stage 1

13. Income

Third party income can represent a significant share of total income.

For waste projects, third party income may be generated from a number of sources, including

  the sale of Landfill Allowance Targets (LATs) credits further to diversion of waste from landfill;

treatment of non contract waste (commercial waste, waste from other councils);

income from RDF disposal;

sale of electricity and/or Renewable Obligation Certificates;

sales of dry recyclables and compost.

The level of third party income could differ between procurement options as PFI could result in different site configuration and or technology, with higher or lower additional waste capacity.

The level of third party income is likely to vary over time. To derive a single input value for each procurement option, the net present value of the total lifecycle costs should be calculated (using the HMT real discount rate of 3.5%) and an annuity determined.

In the Model third party income arises from the year when OpEx is first incurred.

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