The Office of Fair Trading has announced a market study will take place for the treatment of organic waste over whether it is delivering the best outcomes for customers. The OFT works on making markets better for consumers.

The study aims to examine firstly whether price regulation of treatment is appropriate and what can be done to encourage greater competition. It will also look to see if there are any significant barriers to investment.

The water regulator, Ofwat, asked for the study. Cathryn Ross, Director of Markets and Economics at Ofwat said: “The water and sewerage sectors have an important role because they treat sewage sludge- one of the key sources of organic waste. Twenty years ago sludge was a major environmental problem. Now it gives companies the opportunity to engage in new markets.”

Organic waste such as sewage, binned food and farm waste is now be turned into energy through anaerobic digestion. Heather Clayton, Senior Director of Infrastructure at the OFT, said: “Advanced organic waste treatment techniques like anaerobic digestion offer tremendous opportunities to produce clean energy and reduce unnecessary waste.”

The study expects to close in July this year.