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2. (1) A waste disposal authority’s net saving of expenditure for the purposes of section 52(1) or (3) of the Environmental Protection Act 1990 in relation to waste which is retained or collected for recycling shall be determined in accordance with the following provisions of this regulation.
(2) The authority’s net saving of expenditure at a particular time shall be an amount equal to the expenditure which it would have incurred in disposing of the waste at a cost per tonne equal to its average cost per tonne at that time of disposing of similar waste using its most expensive disposal method for waste collected in the relevant area.
(3) In paragraph (2) above, “the relevant area” means the area of the authority in which the waste in question is collected or, where the waste in question is collected by a person other than a waste collection authority in the area of more than one authority and it is not reasonably practicable for that person to determine how much of that waste was collected in each such area, the area consisting of the areas of all those authorities.
(4) In determining its average cost per tonne of disposing of similar waste, the authority shall take into account–
(a)the market value at that particular time of any of its assets (including land) used in connection with disposal of that waste;
(b)any expenditure incurred by the authority in operating any site or transfer station used in connection with the disposal of that waste;
(c)any transport costs incurred by the authority in relation to that waste;
(d)any expenditure which will be incurred in closing, restoring and subsequently maintaining any site belonging to the authority which is used for the disposal of that waste; and
(e)any other expenditure incurred by the authority in relation to that waste.
(5) No account shall be taken of expenditure incurred by the authority in determining the amount of, or in making, any payment under section 52(1) or (3) of the Environmental Protection Act 1990.
(6) If a determination cannot be made under paragraph (2) above because sufficient accurate information is not available or could only be obtained at a disproportionate cost, the authority’s net saving of expenditure shall be £31.53 per tonne where the authority incurs any transport costs in disposing of similar waste and £22.75 per tonne in other cases.
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