Intradel plans to increase its rates by 5% to 8.8%, roughly a year after a disadvantageous deal that led to a downturn at the utility, which is responsible for waste-management in the Liège area.
At issue is a deal Intradel signed in March 2024 with a German firm, Strabag, which built its biomethanisation unit in Herstal.
Under the deal, Intradel was required to pay Strabag €3.3 million despite a financial dispute which, based on claims from both parties, should have favoured Intradel, according to internal documents viewed by L-Post.
Loss-making deal
Strabag initially demanded €10.24 million from Intradel for delays and penalties related to the site.
For its part, Intradel sought €15.1 million to cover operational overcosts and lost income, particularly concerning green certificates.
According to calculations, the German company should have paid Intradel compensation to the sum of €4.9 million.
However, the final agreement reversed this, requiring Intradel to pay Strabag €3.3 million.
Faulty biomethanisation unit
The biomethanisation unit is not operating at its best. The digestate it produces is too wet and emits odours, making compost production difficult, and the electricity output is not enough to sell.
The March 2024 deal included not only the €3.3 million payment but also a €600,000 bonus if Strabag resolved the design flaw of the plant it built.
“Everything was done based on lawyers’ advice,” Willy Demeyer (PS), chairman of the board of Intradel, stated in defence of the deal.
Cumulative losses for 2024-2025 estimated at €8 million
The transaction came amid a delicate financial situation for the intercommunal utility, which recorded a €4.4 million loss in 2023.
Prospects for 2024-2025 are bleak, with cumulative losses estimated at €8 million.
In response, Intradel plans to increase contributions from municipalities.
The minimum service fee is set to rise by 8.8%, or €4.92 per inhabitant per year. Additional services will see a 5% rate hike.
