Implementation of EPR
As anticipated, the rushed introduction of EPR by Defra means there are a number of areas where there remains uncertainty regarding EPR implementation. Many questions have been raised, with Defra still formulating a broad range of aspects for EPR implementation, but perhaps the most frequent question posed is ‘What will the Disposal Costs (also referred to as Modulated Fees) be for business for each material type?’
EPR Disposal Costs
Whilst appreciating businesses need to budget these costs for 2024, Defra is still not in a position to advise what these costs are going to look like.
Disposal costs affect any packaging that is deemed to be household packaging. This by default includes all Point of Sale (POS) and Shipment packaging. As a reminder, Shipment packaging is the packaging added to items sold online or by mail order and includes orders collected by customers.
POS packaging supplied to a business does not pick up disposal costs if the immediate business removes this packaging. In a highly contentious twist to this, any POS packaging around goods that is sold via a distributor must be treated as household even if it is obviously for a business. For example, an IBC sold to a business via a distributor.
Update to the Timeline
With Defra still in the development and testing phase of the EPR systems, the planned dates for companies to enrol for EPR have now changed.
Companies classed as Large Producers (>£2m and handling more than 50 tonnes of packaging) will now only be able to enrol from the 16th of August 2023, as opposed to the 1st of July as originally advised. To recap the latest timelines from Defra are:
From 1st July 2023
Companies can start collating EPR data for the packaging they have handled or supplied for the period 1st January to 30th June.
16th August 2023
• Companies can enrol on ‘Register Packaging Data’ for EPR
• Companies can create an account and link it to their Compliance Scheme provider (if they have
one)
• Companies can nominate a delegated authority
8th September 2023
• Deadline for all data to have been submitted with a signed Data Submission Form
Note: Small producers will only need to register from 1st January 2024.
Registering for EPR
The new EPR Regulations will require registration of each business for EPR on a new system. No-one is able to do this yet as the system hasn’t been finalised by the government.
New EPR Environment Agency Fees
The Environment Agency have now published what will be the new fees for Companies registering for EPR. The new Agency Fees will commence in 2024 and due to the way EPR is being introduced in 2024 many Agency Fees will be charged twice in the first year (2024). None of these Agency Fees will be charged in 2023.
