The City Bin Company has announced it will levy customers with an additional monthly service charge of €1.90 beginning on 1 April because of increased costs of recycling.
In a letter to customers City Bin Company said the cost of accessing recycling facilities has been rising sharply and disposing of green bins is now four times higher than a year ago.
The Managing Director of City Bin Company Niall Killilea said the company had absorbed this cost increase and had hoped the price trend would reverse but it has not happened and so they need to add the additional monthly charge.
The increase will add €22.80 to annual bills.
The City Bin Company has in excess of 50,000 customers in Dublin and Galway.
The news comes days after Panda Recycling announced a €21 annual charge for its 250,000 customers.
The General Manager of Panda Recycling Des Crinion said charging for green bin collections will help Ireland continue to recycle.
Mr Crinion told RTÉ's Today with Sean O'Rourke that Panda had been subsidising recycling charges for about a year.
He assured customers that the company had thought long and hard about this measure and he said prices will not be increased over time.
Mr Crinion said that China's ban on plastic imports had "completely crashed the market".
He said that some countries have stopped recycling because they cannot afford to do it anymore.