SECTORIAL INQUIRY INTO WASTE MANAGEMENT PROVES LACK OF COMPETITION AND TRANSPARENT PRICING

06 05 2015

On May 6, the Competition Council completed a study on waste management in Lithuania.  The sectorial inquiry was started last February in response to a high number of investigations into municipal decisions concerning waste management. The aim of the inquiry was to analyse the sector and to suggest improvements to the waste management system in Lithuania.

The findings of the study include the following:

  • one third of Lithuanian municipalities ignore competition and grant exclusive waste management rights to municipal companies;
  • in some of the municipalities public tenders for waste management services have not been organized for 7 years or even longer;
  • price differences in the municipalities that undertake a competitive selection process to choose the waste manager and those, that do not, ranges from 5 to 100 percent.

The Council provided a set of recommendations for municipalities:

  • to ensure transparent and open conditions for all suppliers;
  • to organise public tenders;
  • to organise tenders for well waste management and transportation services only.

“The results of the inquiry proved a lack of competition and transparent pricing. We do hope that our findings along with the ruling of the Constitutional Court will encourage municipalities to finally obey constitutional principles and act in favour of consumers.”, says Jūratė Šovienė, Deputy Chairwoman of the Council.