compliance with quality standards
set by the Authority for four services
minutes average waiting time
at help desks and chance to book
an appointment with an operator
thousand analyses
carried out on Group drinking water,
1,100 per day, of which 63% on the
distribution network

Bill of waste collection and disposal

Bill of waste collection and disposal
Euro 2016 2017 2018  
Fixed quota 104.66 103.55 103.38 Attributable to Hera: 87% of the bill’s total
Variable quota 88.54 92.02 89.66
Fixed and variable quota not attributable to Hera 35.10 34.70 31.91
Additional province charges 11.41 11.52 12.92
Total 239.71 241.79 237.87

Bill of a residential customer (family of 3 people in a house of 80 m2). Cities considered: Bologna, Ferrara, Cesena, Imola, Modena, Padua, Pesaro, Ravenna, Rimini and Trieste (weighted average of inhabitants). For Ferrara, which from 1 January 2018 introduced the Quantity-Based Tariffs, we also considered the respect of the limit of 52 disposals per year of 30 litres each of non-separate waste. The grey areas show tariff components that are not attributable to Hera.

A family of 3 people, living in an apartment of 80 m2 paid approximately Euro 238 for waste collection and disposal, a decrease of about 4% (about Euro 4) compared to 2017. The decrease in the total bill is mainly due to the effect of the introduction of quantity-based tariffs in the municipality of Ferrara (approximately Euro 48 less compared to 2017). 13% of the amount of the bill is not attributable to Hera and is for additional provincial tax and other TARI tax items, mainly the coverage of uncollected amounts (unpaid portion).

A Waste Tax (TARI) was introduced in January 2014 in both the municipalities where the Environmental Hygiene Tariff (TIA) was applied and those where the Tax on Waste and Services (TARES) was applied. The new tax was added to ensure full coverage of costs relating to the waste management service, which includes sweeping and washing roads, rubbish collection and transportation, separate waste collection, waste treatment and disposal, and administrative costs. The Municipalities can entrust collection of the tax to the waste service operators. 36 municipalities have chosen to do so, for 2018. At the same time, the number of municipalities that have changed their collection charging method from TARI to the Quantity-Based Tariff method have now become 8, including a provincial capital: Ferrara.

According to the national tariff method for defining municipal waste management service tariffs, the tariff must fully cover the costs of the service, including a fair return on the capital invested. In the municipalities served by the Group, 96% of the costs of the service were covered in 2017. This percentage is the ratio between the waste management service costs set out in the financial plans and the actual costs incurred during the year.

The cost of waste management services for residential and non-residential customers

In 2018, Hera charged its residential customers waste management service costs that were 19% below the Italian average and 6% lower than the Northern Italy average: these were the findings of the Cittadinanzattiva Price and Tariff Study (Osservatorio prezzi e tariffe), which covered 106 province capitals. The study based its findings on a standard customer consisting of a family of three living in a 100 m2 apartment.

Also, a new REF Ricerche study on the cost of the TARI waste tax in 2018 considered four types of non-residential users in 102 provincial capitals. In Hera’s service area, hotels spend 21% less than the Italian average, and the savings was 29% for restaurants, 36% for the food industry and 23% for supermarkets. For non-residential users of restaurants, supermarkets and food industry in Hera’s service area, they are cheaper respectively by 25%, 15% and 9% compared to the average for northern Italy: for hotels Hera charges more than the average for northern Italy by 8%. The average of the four types of users considered by the research shows therefore that Hera’s area is more competitive, with costs 27% below the Italian average and 20% below the average of northern Italy.

Cittadinanzattiva’s 2017 report also compares the 2017 cost for municipal waste service in the Italian province capitals. With regard to the 12 large-sized municipalities (over 250 thousand inhabitants), Bologna with a TARI waste tax of Euro 286 ranks among the cities with the lowest cost, together with Florence and Verona and a level 16% below the average of the 12 capital cities.

The 2018 REF Ricerche report also compares the cost of the municipal waste service for non-residential customers in Italian province capitals with over 250 thousand inhabitants. Among them, Bologna ranks as one of the cities with the lowest average costs for the 4 types of non-residential users considered by the study (restaurants, hotels, industry and supermarkets), with Euro 10.20 per m2.

The cost of the waste management service

Hera has lower costs than the rest of Italy, also considering the cost per tonne of waste treated: 23% less than of the Italian average and 12% less than that of northern Italy (Source: Ispra, 2018 Municipal Waste Report, 2017 data). This result is also due to the higher amount of the waste of non-residential customers being similar to municipal waste, which allows the fixed costs of the service to be spread over a higher quantity of waste.