Private waste companies say they have made a formal complaint to the European Commission over Dublin City Council's plans for the Poolbeg Incinerator.
Brendan Keane, of the Irish Waste Management Association, told an Oireachtas Committee today that his members believe the council's contract with the incinerator's operators amounts to State aid.
Under the contract with Covanta and DONG Energy, the council has to provide 320,000 tonnes of waste a year, or else pay them compensation.
Mr Keane told the Oireachtas Environment Committee that this plan could drive out competition and cause the loss of 2,000 jobs, as well as being detrimental to the consumer.