Islanders will face higher garbage collection fees in 2025 if IRAC approves rate hike

Prince Edward Islanders may see an increase in garbage collection fees this year as the Island Waste Management Corporation is asking for permission to raise its rates.

The application is currently before the Island Regulatory and Appeals Commission.

Under the proposed changes, year-round residential rates would increase by around 10 per cent, from $236 to $261 annually. Seasonal cottage owners would see their rates go up by 12 per cent, from $116 to $130.

Commercial business rates would not be affected because their current rates cover IWMC's collection costs. 

In its submission to IRAC, Island Waste Management said the annual residential household rate rose from $205 to $236 between 2015 and 2023, a 15 per cent increase.

Islanders weren't likely to notice that hike, however, because the P.E.I. government gave IWMC millions of dollars to help subsidize its costs so residents didn't have to pay the full fee. 

But if those subsidies end and IRAC approves the application, year-round residents would actually be facing a 27 per cent increase this year.

P.E.I. residents could pay more for garbage collection in 2025

14 hours ago

Duration 2:10

Island Waste Management Corporation is asking for permission to increase its rates. If approved, it could mean a noticeable jump in people's bills. CBC's Laura Meader has the details.

'Significant' cost increases

Karen MacDonald, Island Waste Management's CEO, said the provincial Crown corporation is looking to catch up with cost increases.

"We've seen significant increases in things like wages and fuel and equipment," she said. "We've also seen increases in costs of purchasing equipment, repairing equipment, doing maintenance."

MacDonald added that many of the corporation's buildings and equipment are in need of upgrades, too. Its central compost facility in Brookfield, for example, is now more than 20 years old.

IWMC has also been working to accommodate the Island's growing population.

"We have a greater population, so we have some additional revenue coming in, but at the same time we have more expenses that really offset that additional revenue."

Awaiting approval

MacDonald said she hopes to hear back about the application in February.

If approved, the new rates for residential customers will appear on their 2025 property tax bills that will be sent out in May. 

But even with the proposed increases, MacDonald said the costs to Islanders is reasonable — about $5 a week. 

"In order to operate a system that is functional and that is safe for the public, for our employees, for collection drivers, these are the costs that we're going to incur in the coming year."

Anyone who wants to comment on the application can write to IRAC. The deadline is Jan. 24.