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]
Intelligence without ambition is a bird without wings.
Drawing is the honesty of the art. Salvador Dali
Today Total Utilities announces its new branding. Over the last 18 years we have worked hard to assist companies in controlling consumption and cost. It’s an exciting day for us and we are proud to share this with you.
From today you’ll see a change in the way we look, including our new ribbon logo. The spherical shape represents the whole as we take a 360 degree approach to understanding our clients and their utility requirements, whether it be Energy, Waste and ICT or Insights, Strategy and Solutions.
What doesn’t change is our desire to create a sustainable future for New Zealand businesses and how they manage their utilities by continuing to deliver ongoing value for our clients.
We continue to work hard to provide new services to assist our clients such as Energy Monitoring and Targeting through wireless non-intrusive energy senors, Cloud Computing Analytics for consumption of computer services and qualitative and quantitative reporting aligned to overall financial strategy.
We remain committed to delivering a personalised service and assisting our clients navigate a rapidly evolving commercial market place by underpinning strategic thinking.
I would like to thank our existing clients for your continued loyalty and confidence in our company. To prospective clients, I hope that you will partner with us to discover real world solutions for sustainable utility consumption and cost optimisation.
Businesses need to get the best possible pricing and contract terms for utilities such as water, power and rubbish collection.
But once costs are minimised, improved utilisation becomes critical to extracting greater value. A formal, independent audit process is the best way of identifying quick wins.
Why perform an audit now?
In the past two years the waste services marketplace has experienced aggressive price-cutting by major suppliers. Now they are differentiating themselves with srvice offerings, and their customers need to understand how.
In recent months two vertically integrated suppliers have signalled their intention to emphasise value-added recycling and waste minimisation processes over price-cutting, going forward. Other suppliers of waste services that don’t possess their own landfills are using waste audit services as a point of difference, to avoid getting dragged into a price-cutting battle they will struggle to win.
The most efficient money-savers
Business customers will save more money by sending less waste to the rubbish dump (landfill) than they will from a reduction in the price of waste services.
From a supplier’s standpoint, waste audits are costly, requiring staff time and data analysis, with capital outlays often the consequence of the resulting recommendations. Waste audits are also self-defeating for those in the business of collecting and burying rubbish.
As we have been working with businesses to reduce their waste quantities and bin movements, as well as negotiate new commercial contracts on their behalf, we have observed the following potential pitfalls:
Staff training: New waste-handling process may require either specialised staff training or socialising of new ideas. This entails additional cost, and the purported benefits may be predicated on unrealistic assumptions.
Staff buy-in: Change needs to be adopted from the top down, however, if staff aren’t on board with a new process, you could be charged for specialist one-off disposal of spoiled recyclables should waste not be accurately sorted. It is thus important to ascertain the time pressures on your staff before a new initiative is accepted.
Hospitality customers are a happy hunting ground for waste diversion suggestions given that their raw materials often come in recyclable packaging, and food waste streams result. However, this industry is fundamentally deadline-focussed, and staff are less likely to worry about what goes in a particular bin when there are orders backing up. A suggestion to save money on waste may thus end up costing you more in staff time.
Spread the message and keep it current: Ensure you spread the waste diversion message beyond a small number of staff. This has cropped up in the education sector where a particular year/age group might push hard for an improved process, but the next year is more apathetic. A few years later a similar set of failed initiatives will be suggested by an enthusiastic set of newcomers, unaware of what was previously attempted.
Audit waste expenditure
Challenge current processes and the underpinning assumptions with an audit review process. The terms and conditions of certain supply agreements prohibit your engaging competing waste service suppliers for such reviews. This serves the interests of your incumbent supplier, whilst limiting the breadth of ideas and potential technologies available.
The Commerce Commission moved in 2015 to limit unfair contract terms, which cause an imbalance in parties’ rights in consumer contracts. Although the intention is to focus on the non-commercial sector, energy retailers have begun rolling out more end-user friendly terms to business customers.
It is our hope that the relevant waste industry participants will adopt a similar position to allow for a greater spread of waste minimisation ideas.
Waste diversion reduces cost
Other than the obvious desire to limit landfill refuse, to extend the life of these expensive assets and minimise resource wastage, there are currently obvious financial pay offs in diverting waste. These are likely to grow in future, either with a change of Government, or with a change in Government focus.
A waste levy of $10 per tonne is already in place to help reduce the amount of waste New Zealanders generate, but the levy is set at a level 10 times below that of some of New Zealand’s regular trading partners. In addition, the Emissions Trading Scheme covers methane emitted from landfills, but only for every second tonne at present.
Energy-savings initiatives by business are hampered by relatively low energy-pricing, and the same sort of thinking will undoubtedly apply with regard to waste services. However, given the current level of these charges vis-à-vis our international trading partners, we recommend business remediates as much as possible now rather than face higher costs in the future.
With the components of your waste services charges unlikely to fall any lower, diverting waste from landfill such as with increased recycling, is the best way to unlock additional savings and insulate your business from potential cost blowouts in future.
Jonathan Gardiner is a Director of Total Utilities.
The recent Commerce Commission ‘ruling’ on Unfair Contract Terms for utilities is great news for businesses.
Total Utilities has been negotiating utility agreements since 1999 and a recurring bugbear for us in the past 16 years has been the use of automatic contract roll-over and right of renewal/price-matching provisions by some suppliers to constrain effective competition.
Put bluntly, these clauses have been used as a ‘hospital pass’ by the suppliers in question to avoid a level competitor playing field – especially in the waste services/recyclables and natural gas markets.
As of 16 March 2015, the applicable new agreements must not include such clauses (i.e. Unfair Contract Terms).
It must be emphasised however that these contract clauses are still allowed if existing supply/service agreements are renewed for a further term.
The implications of this are very clear, businesses should negotiate brand new agreements covering the utilities etc in question – don’t just roll your existing agreement on the basis of unchanged contract terms and conditions.
Reference should be made to the Commerce Commission website for full details of their ruling. A PDF of the ruling can be downloaded here.
Earlier this year Tamaki College’s executive officer, Neil McEnteer had no hesitation in handing over the school’s waste contract to Total Utilities for review. Since his first dealings with the utilities experts in 2012, Neil had seen the college benefit from significant savings across electricity, gas and telecoms bills. He remembers being quietly confident of another good result.
“In a sector where budgets are very tight, it is important keep costs to a minimum,” said Neil. “Every dollar we save is a dollar more we can spend on teaching and learning.
“Unless you are proactive, completely up to date with market information and have read all the fine print, it’s difficult to be sure that you’ve secured the best utilities contracts. Working with Total Utilities has shown us just what can be achieved when you bring in the experts.”
In 2012 Total Utilities cut the college spend on electricity by 12% and then by a further 13% through an early renegotiation in 2014. Acting on their advice, Neil moved the college’s gas supply contract to a new retailer in 2012, reducing annual costs by 13%. To complete the trifecta, Total Utilities renegotiated the school’s telecoms contract at the beginning of 2014, resulting in an overall saving of 29%.
“While we were discussing one of the other contract renewals, I asked for advice on our waste spend. Without realising it, we had allowed our contract to automatically roll over for two consecutive three-year terms. Jonathan Gardiner from Total Utilities took one look at the figures and said we could do way better on the price.”
Waste contracts almost always require 90 days’ notice prior to the renewal date if the customer wants to review pricing. If this opportunity passes, the pricing and contract terms automatically roll over for another three years. (more…)
Jonathan Gardiner shares some ways to save money on waste management at your organisation:
How full are your bins?
If bins are regularly being picked up half or two thirds full consider increasing the size of your bin to reduce the number of pick-ups and cut transport and tipping charges.
Are you paying for pick-ups you don’t need?
Going into the long summer holidays, make sure your pick-up regime reflects the drop in the amount of waste generated over the next two months. If your scheduled pick-ups remain unchanged, you’ll most likely be paying for empty bins to be emptied!
What’s in the bin?
Carry out an audit of your waste disposal process on site. Walk through what actually happens on the ground rather than looking at the process you have in place to deal with waste (practice rather than theory). Ask your waste company to supply a breakdown of the bin contents from a typical week and see if it all stacks up. This will give you some insight into whether you can reduce the amount of waste that ends up in the bin.
Keep an eye on price adjustment clauses
Check your contract fine print to see whether your waste company can pass on increased charges at short notice. If they can, make a note to renegotiate the small print at next time your contract comes up for renewal.
Review contract pricing
Make a note of your contract expiry date and count back 90 days. Make sure that you give written notice of your intention to review pricing well in advance of the 90 day cut off if you want to avoid your current pricing being locked in for another three years.
If you’d like to see how much you can save, talk to Jonathan Gardiner at Total Utilities. Find out more about the waste services that Jonathan and the team can assist your organisation with.
Hospitality customers are a happy hunting ground for waste diversion suggestions given that their raw materials often come in recyclable packaging, and food waste streams result. However, this industry is fundamentally deadline-focussed, and staff are less likely to worry about what goes in a particular bin when there are orders backing up. A suggestion to save money on waste may thus end up costing you more in staff time.
