What impact will the fuel duty have on the waste industry?

Operators of any type of plant and equipment will have struggled to miss the ongoing debate surrounding the proposed scrapping of the red diesel rebate.

It may seem like a lifetime ago, but back in March, chancellor Rishi Sunak announced that the fuel will only be available for use within the rail and agricultural sectors, as of April 2022. An article in The Construction Index revealed at the time that: “Users of off-highway construction machinery will have to pay an extra 46.81 pence per litre for their diesel, paying the standard tax rate of 57.95 pence per litre rather than the subsidised red diesel rate of 11.14 pence per litre.”

Many organisations are therefore calling for a delay to the duty changes, not least because of the increased economic pressures caused by Covid-19. There is no disputing that the removal of the red diesel subsidy will hit industry, and hard.

But Rishi Sunak’s decision reflects the need to move towards lower carbon fuels – something which certainly resonates with UNTHA. And suddenly, the business case for an electric-drive shredder now stacks up even more.

“We’re always very transparent when it comes to the numbers,” explained managing director Marcus Brew. “In fact, we actively help customers build business cases for their shredders because we know our ROI proposition is strong. The removal of the red diesel subsidy makes an investment in our energy-efficient machines, even more compelling.”

The UNTHA XR waste shredder with Eco Drive, for example, could reap a saving in excess of £150,000 in year one alone.

Here’s how:

The power consumption cost for an energy-efficient XR, operating for 4,000 hours per annum = circa £63,000.

Under the new rules, the cost to run a diesel hydraulic equivalent, is £1.20 p/litre x 45 litres p/hour x 4,000 hours = £216,000.

This represents a £153,000 saving in only the first year.

“Customers invest in the XR for various reasons, including its versatility, proven particle precision and ease of maintenance – to name just a few. But the technology’s energy efficiency and low whole life running costs are particularly attractive benefits, that are now more relevant than ever,” continued Marcus.

“A growing number of businesses want to commit to ‘greener’ technologies, but it often costs more to have an eco-conscience. Not with the XR!”

Need to know more..?

  • If you’d like to discuss these numbers, or need some help building a shredder business case, unique to your own organisation, please call us on 0845 450 5388 or email sales@untha.co.uk.
  • Have you seen the latest XR shredder video from the UNTHA UK team? Check it out on our YouTube channel.
  • Want to chat to Marcus? Connect with him on LinkedIn or why not follow our company page.

Source: The Construction Index

Photo by Adolfo Félix on Unsplash  

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