Private waste collection companies will continue to be allowed open competition under a new policy announced today.
Minister for the Environment Phil Hogan has gone back on plans to give local authorities the power to award contracts for the service.
The minister said that the Competition Authority had also changed its assessment as well.
Companies such as Greyhound, Greenstar and Panda will continue to be allowed to compete house-by-house for business.
Dublin City Council, which had argued for a tendering system, said it accepted the new arrangement.
Assistant City Manager Seamus Lyons denied that this lack of control would make the proposed Poolbeg incinerator unworkable.
He said the waste still has to be disposed of regardless of who collects it.
The new policy, which follows a five-year review, also includes the establishment of a team of waste enforcement officers and laws to stop illegal dumping.
There will be service standards for waste companies.
The number of waste planning authorities will be reduced from ten to three.
The Minister said the new regulatory system for waste companies would require them to have more transparent charging structures.
Mr Hogan also criticised some firms for the way they had treated their customers in recent times and the level of information available to them.
"It's not acceptable for firms to ignore the genuine complaints of their customers and they will be held to account for their failures under the new system," he said.
In a statement the Irish Waste Management Association (IWMA) welcomed the decision to maintain side-by-side competition in the household waste collection market.
It said the decision will provide certainty for those involved in waste collection.