It’s no secret that the world is facing a waste crisis. How to reduce it, pay for it, its impact on our public and planet’s health, and where it ends up are just some of the concerns we’re grappling with.
The good news is, Total Utilities can help you identify, monitor, and reduce your waste. Here’s why engaging us as your waste management consultant is so important.
Waste is costly for our planet and business
Our growing waste problem is not only costly to the environment but expensive for businesses. New Zealand faces rising transport and disposal costs, changes to national policy and levies, and uncertainty around where to export our recycling when we don’t have the facilities to handle it here.
The Emissions Trading Scheme (ETS), our government’s primary climate change response, plays a leading role in how we collectively manage waste and reach our internationally established targets. Our 2030 target, which is New Zealand’s first Nationally Determined Contribution (NDC) under the Paris Agreement, is as follows:
Waste is a specified activity under the ETS, so those in the waste sector must participate in the scheme. This means disposal facility operators must report their emissions to the government. They need to pay for permits to emit carbon and can offset their emissions. Land disposal facilities have options: they can either decarbonise their activities, face mounting costs, or offset their emissions by supporting climate action projects like forestry and conservation.
The most cost-effective and sustainable path for landfill facilities is to find ways to reduce their emissions. The government incentivises these facilities to find and deliver innovation and efficiencies by becoming eligible to apply for a Unique Emissions Factor. You can read about this here.
Waste levy increases
Growing pressure to address climate change, the uncertainty surrounding recycling commodity returns and stricter separation and hygiene standards are all factors behind the government’s decision to raise waste levies.
The levy increase will be phased in over four years, the first of which happened in July 2021. Levies will increase to a maximum of $60 per tonne by 2024.
These increases are designed to encourage more recycling and to divert waste from landfills. The costs apply regardless of which waste supplier you choose.
Based on the average industry wage, the cost increase would equate to an additional $22 per 4.5m³ front-end load pick up. We’re investigating with each supplier how this cost will be passed on.
The big issue: Spoiled or contaminated recycling
In a 2018 Stuff article, Green Party MP, Eugenie Sage, who was the Associate Environment Minister at the time said, “The co-mingling of waste like glass, paper and plastic was what led China to stop accepting it.”
One solution is to improve the quality of our waste by changing our behaviour – getting better at sorting and separating our waste at the source.
Countries no longer taking some recyclables creates greater uncertainty
Now that the Chinese market doesn’t accept specific categories of recyclables, costs have grown significantly.
The Chinese government also signalled to reduce its annual cardboard recycling quota by six million tonnes (10% of global demand). This means the cardboard price will drop further – it’s a market characterised by extreme pricing uncertainty.
China’s ban had a massive ripple effect on where millions of tonnes of waste ended up. Indonesia bore the substantial brunt of this.
In late 2019, the Indonesian government was looking to pass urgent legislation which would allow them to legally return spoiled recycling back to the port of origin, not the last port of call.
Indonesia has now closed its market to recycling and has indicated it would only re-open if spoiled waste could be sent back to the country of origin.
How the tightening of global spoilage standards will affect us.
Stricter global spoilage standards will affect the ongoing rates for recycling in New Zealand. The market has not priced all these factors in yet. Under the current uncertain climate, suppliers are unable to fix pricing for recycling.
How Total Utilities can help you navigate the costs and changes.
By working closely with our specialist waste consulting partners, suppliers, and customers, you can achieve reduced waste charges and levies, improved monitoring and reporting of your waste systems, and ultimately send less waste to landfill. This is a win for your bottom line and the environment.
Navigating the waste environment alone is complicated – it takes a deep understanding of the political, environmental, and global trends and policies. We expect that what happens to our waste will continue to be complex for many years to come.
Total Utilities has a finger on the pulse of policy, pricing and procurement. We can effectively interpret the changes and identify smart ways for you to contribute towards a more efficient, greener, cleaner planet.
40% reduction in exposure to waste levies Contract savings of $420k between 2021 and 2024 Ongoing recycling savings of $288k + each following year
Why Organisations Need Us
Significant financial, environmental and brand gains are achieved when businesses manage and monitor their waste efficiently.
To combat our growing waste problem, the New Zealand government is increasing the levies on nonrecycled waste from $10 per tonne to $60 per tonne by 2024. Now more than ever, businesses need to reduce the amount of waste they send to landfill.
Our experienced waste consulting service team will help to navigate the often-complex waste management environment in Australasia.
How we help
Total Utilities provides a coordinated waste procurement, supplier management, monitoring and reporting service to many well-known New Zealand and Australasian brands.
We make sense of the options available, and know when and how to manage contracts,supplier engagement and multiple waste streams.
Major Client Wins
Case one: Increasing recycling and reusing behaviours
One of our big retail clients generates around 7,000 tonnes of waste each year. Until recently, most of this headed straight to landfill with minimal recycling or reuse. If they continued down this path the additional government levies and disposal tariffs could have added around $400,000 each year to their waste bill. Not to mention the damage to the environment and their brand’s reputation.
By engaging Total Utilities, the above customer:
managed their supplier and contracts effectively
gained significantly improved reporting and identified insights into their waste and waste behaviours
got their staff on board with new systems and policies
Reduced 40% of their waste levies through contract and performance efficiencies – and diverting waste from landfill by reusing and recycling
will save $420,000 between 2021 and 2024
after that they will save at least $288,000 p.a.
Case two: Waste mitigation and colloboration
We recently conducted a waste mitigation project in partnership with a well-known Australian firm, their supplier, and a specialist recycler. This partnership not only produced significant costs savings but allowed all parties to measure and monitor their results.
By engaging Total Utilities, the above customer:
standardised many previously disjointed supply and service arrangements
extended an existing major client contract
reduced their landfill usage, governance costs and costs to serve individual customer branches
reduced their waste charges and levies and improved their efficiency of supply.
Case three: Achieving long-term win/win contracts
Our client was about to negotiate a new contract with an existing waste supplier. Head Office in the meantime was facing increasing pressure to reduce costs and report on robust decarbonisation, recycling and waste diversion targets.
Total Utilities worked with the supplier to agree a win/win contract that included agreed targets and reporting. The supplier met these targets in the first half of the contract term, earning them the right to extend their contract for a much longer period, subject to continued performance.
As a result of this improved contact, the customer:
saw improved efficiency
faced much reduced waste charges
could see clear and measurable sustainability and decarbonisation outcomes
can now report their results to their Board, executives, shareholders, the market and government.
Total Utilities continues to work with all parties to provide ongoing improvement suggestions,
verifiable reporting on cost and consumption trends, and to ensure everyone complies with the
contracted billing and performance outcomes.
Successful outcomes for business, consumers and our planet
By working closely with our specialist waste consulting partners, suppliers and customers, Total Utilities improves the performance and efficiency of waste management, whilst negotiating the best possible contract terms. For our customers, this means reductions in their waste charges, levies and carbon footprint, improved monitoring and reporting of their waste systems, and less waste sent to landfill. We’re proud that as a result of these engagements businesses can reduce and reuse. These sustainable practices can be maintained long into the future for the benefit of current and future generations.
Keen for your business to enjoy the similar outcomes? Email us at [email protected]
As the southernmost commercial deep-water port in New Zealand, South Port NZ worked with Total Utilities to implement Centrica Business Solutions’ Panoramic Power™ technology – avoiding costly upgrade projects and increasing available storage capacity.
80% increase in container storage days compared to previous year
10mins to collect data from 51 revenue meters across site
$600k savings from avoided capital project expenses (USD)
Increasing capacity of available on-site storage
South Port NZ is a deep-water port on a 40-hectare Island located in Bluff, New Zealand, from where it provides a full range of marine services, cargo and container shipping, and on-site warehousing for domestic and international customers.
In 2019, South Port NZ partnered with Total Utilities to better understand the actual power demand of the site, identify opportunities to increase existing storage capacity and deliver customised solutions to meet the needs of customers on the island. An initial supervisory control and data acquisition (SCADA) solution was proposed by a 3rd party vendor to address the needs, which came with a price tag of NZD$800,000.
As a partner of Centrica Business Solutions, Total Utilities supplied and DECOM Electrical installed Panoramic Power wireless, device-level, energy monitoring sensors at the port. After a month of capturing the data and analysing it using Centrica Business Solutions’ complimentary energy management software, PowerRadar, South Port NZ deployed an additional 229 Panoramic Power sensors and over 30 communication bridges across the port with minimal interruption to operations. Within days, the on-site infrastructure team gained real-time, granular visibility into the energy consumption and operation of their critical assets across the site. The easy-to-install energy insights solution now transmits data securely via cellular connectivity – monitoring more assets than the initial proposed SCADA solution, at a fraction of the cost.
“PowerRadar provides real-time data on demand versus capacity which allows us to maximize our electrical PowerRadar provides real-time data on demand versus capacity which allows us to maximise our electrical infrastructure while minimising risk. Being a small team looking after the engineering infrastructure of a 40-hectare island, takes a lot of our time. Having something like this that provides us with real-time, easy data, provides efficiencies saving us a lot of time.”
Jason Paul, Project Engineer, South Port NZ
Prior to installing Panoramic Power, the infrastructure team had been unable to determine the maximum number of refrigeration storage units that could be brought online safely at any given time. As such, only eighty electrical plugs were available at any time – one per refrigeration storage unit – within two substations dedicated to handling refrigeration reefers for port customers. With real-time visibility of the measured load across the electrical substations in PowerRadar, the infrastructure team realised that the electrical capacity for these substations was being underutilised – adding more plugs to these substations doubled the reefer capacity to 160 without any major or costly upgrades.
Streamlining resources for managing assets
One of the hurdles of the day-to-day operations at the port was the amount of time spent in collecting data from submeters to invoice port customers. Typically, it would take one of the port’s personnel three days every six months to capture the readings from all 51 revenue meters around the port, regardless of the weather conditions. Using PowerRadar, it now takes them only 10 minutes to collect the meter information before it is passed to their finance team for invoicing customers.
With the monitoring of the sewer pump stations at the port using PowerRadar, the infrastructure team now receives real-time alerts on the status of the motors operated at those stations. This has enabled the reallocation of limited resources to other critical assets at the port. One of the benefits of such reallocation was the detection of surface water ingress at the pump stations by the infrastructure team, having compared the measured power draw of the pumps to available rain data. It is now possible for the infrastructure team to track the amount of surface water ingress at each station on days with rainfall and implement any corrective measures.
Effective planning for infrastructure projects
When trying to identify which assets at the port should be prioritised for capital upgrade projects, the infrastructure team relied on the energy consumption data in PowerRadar. This enabled the team, particularly in the design phase, to plan future expansions as well as ongoing maintenance of the existing electrical infrastructure at the port.
An energy audit was completed for one of the large electrical substations being monitored at the port. The findings resulted in the approval of a large capital project for implementing changes to the substation, and switch board running the Cold Stores and an expected payback within one year.
To ensure the reliability of the substations to handle loads within the port’s electrical network, especially during periods of storing a large number of refrigerator containers, the infrastructure team uses the real-time energy dashboard within PowerRadar to track the maximum power demand from the combined substations. If the power draw approaches 1 MW, the team can begin to consider bringing backup generators online or other ways of taking some load off the power grid at the port.
By choosing to implement Panoramic Power across the site, South Port NZ reduced their capital expenditure by US$600,000 and achieved an increase of 80% in container storage days compared to the previous year. In addition, South Port NZ is now able to report on their carbon footprint annually, provide automatic reports on monthly energy use to port users and streamline efforts in identifying areas of high energy usage for investigating ways to lower the peak demand at the port.
Total Utilities is New Zealand’s largest issuer of business-to-business energy procurement tenders, providing energy purchasing services to many household names. With around 500 tenders issued to the market every year, getting favourable terms is crucial. But negotiating energy contracts is so much more than getting a great price. It involves an understanding of the many moving parts.
The variables that influence retail energy prices are:
GEOGRAPHICAL
New Zealand’s population is dispersed over a large land area, creating its own set of challenges.
FINANCIAL
Prices are based on the changing supply and demand through the wholesale spot market.
MARKET-DRIVEN
The market is deregulated, and our national energy supply consists of generators/retailers, the national grid operator and 29 local distribution companies. Energy retailers can hedge future energy on the ASX Energy Futures market.
SOURCE OF ENERGY
New Zealand has a diverse generation fleet, including hydro, geothermal, wind, and coal.
REGULATORY
The Emissions Trading Scheme, Net Zero 2050 and shifting government policy influence generator behaviours.
TIMING
Changes to hydro storage and government policy mean windows of opportunity can be very limited in the energy market.
That’s why engaging independent energy consultants who understand the variables, the available options and when to time procurement events is so worthwhile.
Let’s look at different scenarios where our clients saved significant sums because they had Total Utilities on their side.
TIMING MATTERS Leaving a negotiation too late gives retailers an unfair advantage, as customers have limited options to choose from. A large university’s contract was due to expire, and they were concerned about going to market too soon. They usually would wait until two or three months before expiry to begin researching options. However, we encouraged them to procure their contract with eight months to go. In doing so, they avoided a 36% cost increase and saved over $2 million.
WE ARE LEVERAGING COMPETITIVE TENSION: A national food producer was given a renewal offer from their energy supplier and told that this was the most competitive option in the market.At Total Utilities, though, we understand that retailers don’t always put their best foot forward unless you give them a push. After we went through a competitive tender process, we negotiated a new renewal offer of over $500,000 less than the previous offer.
DOWNGRADING YOUR METER CAN MAKE A DRAMATIC DIFFERENCE An Auckland-based packaging customer was facing a 40% cost increase over three years. Their retailer was only giving them pricing based on their current meter configuration. This is typical in New Zealand because, unlike other countries, there isn’t a fully contestable meter supplier market. Despite being a large commercial customer, they could downgrade their meter because of their connection size. Total Utilities helped with the meter downgrade and negotiated new pricing on their behalf. As a result, they reduced their cost increase by 75% over three years and saved $200,000. The customer couldn’t believe that changing their meter would have such an impact on their new contract prices.
WE ARE ACTING QUICKLY TO HELP CLIENTS IN NEED A Christchurch-based supplier and manufacturer of commercial refrigeration equipment had been out of contract for more than two months. Struggling on their own to get offers for energy supply, they were at risk of costly spot pricing. Spot pricing changes every half hour making it a volatile and expensive route. The customer asked us for help after getting a renewal offer from their current supplier. The trouble was the offer represented a whopping 225% increase over the next 12 months.Within just five days, we presented the customer with our recommendations. We laid out several energy supply options with different retailers. The best option was 150% lower over the first 12 months than the one previous. What’s more, the new contract was backdated over two months. This meant they avoided default spot prices. Overall, the best option was 27% more cost-competitive over the term of the agreement.
The right energy procurement is crucial
Total Utilities are so much more than negotiators. We have a deep and long-term understanding of the energy market and the many factors that influence supply, price, and demand.You don’t have to settle for the first offer on the table. By engaging us, we leverage the right timing and competitive tension to get you the most favourable terms, saving you significant sums of money over the duration of your contract.
PowerRadar™ helps reduce capital expenditures and increases storage capacity at a 40-hectare commercial water port
As the southernmost commercial deep-water port in New Zealand, South Port NZ worked with Total Utilities to implement Centrica Business Solutions’ Panoramic PowerTM technology – avoiding costly upgrade projects and increasing available storage capacity.
Increasing capacity of available on-site storage
South Port NZ is a deep-water port on a 40-hectare Island located in Bluff, New Zealand, from where it provides a full range of marine services, cargo and container shipping, and on-site warehousing for domestic and international customers.
In 2019, South Port NZ partnered with Total Utilities to better understand the actual power demand of the site, identify opportunities to increase existing storage capacity and deliver customised solutions to meet the needs of customers on the island. An initial supervisory control and data acquisition (SCADA) solution was proposed by a 3rd party vendor to address the needs, which came with a price tag of NZD$800,000.
As a partner of Centrica Business Solutions, Total Utilities installed Panoramic Power wireless, device-level, energy monitoring sensors at the port. After a month of capturing the data and analysing it using Centrica Business Solutions’ complimentary energy management software, PowerRadar, South Port NZ deployed an additional 229 Panoramic Power sensors and over 30 communication bridges across the port with minimal interruption to operations. Within days, the on-site infrastructure team gained real-time, granular visibility into the energy consumption and operation of their critical assets across the site.
The easy-to-install energy insights solution now transmits data securely via cellular connectivity – monitoring more assets than the initial proposed SCADA solution, at a fraction of the cost.
80% increase in container storage days compared to previous year
10mins to collect data from 51 revenue meters across site
$600k savings from avoided capital project expenses (USD)
“PowerRadar provides real-time data on demand versus capacity which allows us to maximize our electrical infrastructure while minimizing risk. Being just a team of three looking after a 40-hectare island and the engineering infrastructure, it takes a lot of our time. So, having something like this that provides us real-time data, easy data, saves us a lot of time.”
Jason Paul, Project Engineer, South Port NZ
Prior to installing Panoramic Power, the infrastructure team had been unable to determine the maximum number of refrigeration storage units that could be brought online at any given time. As such, only eighty electrical plugs were available at any time – 1 per refrigeration storage unit – within two substations dedicated to handling refrigeration reefers for port customers.
With real-time visibility of the measured load across the electrical substations in PowerRadar, the infrastructure team realised that the electrical capacity for these substations was being underutilised – adding more plugs to these substations doubled the reefer capacity to 160 without any major or costly upgrades.
Streamlining resources for managing assets
One of the hurdles of the day-to-day operations at the port was the amount of time spent in collecting data from submeters to bill the port customers. Typically, it would take one of the port personnel three days every six months to capture the readings from all 51 revenue meters around the port, regardless of the weather conditions. Using PowerRadar, it now takes them only 10 minutes to collect the meter information before it is passed to their accounting department for invoicing customers.
With the monitoring of the sewer pump stations at the port using PowerRadar, the infrastructure team now receives real-time alerts on the status of the motors operated at those stations. This has enabled the reallocation of limited resources to other critical assets at the port. One of the benefits of such reallocation was the detection of surface water ingress at the pump stations by the infrastructure team, having compared the measured power draw of the pumps to available rain data.
Coupled with cameras installed in the pipes at the pump stations, it is now possible for the infrastructure team to track the amount of surface water ingress at each station on days with rainfall and implement any corrective measures.
Effective planning for infrastructure projects
When trying to identify which assets at the port should be prioritised for capital upgrade projects, the infrastructure team relied on the energy consumption data in PowerRadar. This enabled the team, particularly in the design phase, to plan future expansions as well as ongoing maintenance of the existing electrical infrastructure at the port.
An energy audit was completed for one of the large electrical substations being monitored at the port. The findings resulted in the approval of a large capital project for implementing changes to the substation, with a projected increase of up to 350 reefers in total on the port and an expected payback within one year.
To ensure the reliability of the substations to handle loads within the port’s electrical network, especially during periods of storing large refrigerator containers, the infrastructure team uses the real-time energy dashboard within PowerRadar to track the maximum power demand from the combined substations. If the power draw approaches 1 MW, the team can begin to consider bringing backup generators online or other ways of taking some load off the power grid at the port.
By choosing to implement Panoramic Power across the site, South Port NZ reduced their capital expenditures by US$600,000 and achieved an increase of 80% in container storage days compared to the previous year. In addition, South Port NZ is now able to report on their carbon footprint annually, provide automatic reports on monthly energy use to port users and streamline efforts in identifying areas of high energy usage for investigating ways to lower the peak demand at the port.
Discover how Total Utilities helped New Zealand schools harness real-time energy insights to identify energy waste, explore solar power viability, and drive significant reductions in carbon emissions.
With over 1,500 Panoramic Power sensors installed across 50+ schools, we identified energy wastage and demonstrated the cost-saving potential of solar power. Schools are now making smarter, data-driven decisions to cut costs and reduce emissions.
Learn more about how energy efficiency and solar can drive sustainability in our full case study!
