Price for waste incineration incorrectly calculated

Interkommunale Anstalt Limeco, a waste management and wastewater processing company, operates the waste recycling plant in Dietikon among others. The Price Supervisor investigated the price charged by Limeco to several Zurich municipalities for the thermal recovery of municipal waste. It found the pricing to be abusive and ordered a temporary reduction. According to the Price Supervisor, the price was to be reduced from CHF 150 to CHF 102 per tonne between 1 January 2021 and 31 December 2023. Limeco filed an appeal against this ruling with the Federal Administrative Court (FAC).

Price supervisor infringes environmental regulations
The FAC notes that the Price Supervisor’s analysis of the alleged price abuse is not in compliance with the provisions of the Environmental Protection Act. In its review, the Price Supervisor violates the regulations on the self-financing of waste recycling plants, misapplies the polluter-pays principle and fails to take into account the investment costs for the replacement of the waste recycling plant. As a result, its calculations are based upon incorrect assumptions. The Court therefore annuls the price reduction order and refers the matter back to the Price Supervisor. In the light of the considerations explained in the judgment, the Price Supervisor must now re-examine whether Limeco is effectively charging abusive prices to certain Zurich municipalities.

This judgment may be appealed to the Federal Supreme Court.