Businesses producing large volumes of cardboard, plastic and other waste are now responsible to pay the cost of collection, recycling and disposal, a system known as Extended Producer Responsibility (EPR). The first deadline for reporting was in October, and many firms have already received hefty invoices.
That’s because some UK businesses are already being overcharged by millions of pounds, according to data released by Ecoveritas.
“UK businesses are facing another hike in costs under the new rules on packaging, at a time when expenses are rising across the board. “It is critically important that they get this correct, as mistakes in the reporting process – which can be complex – can result in even larger bills,” says Andrew McCaffery, chief strategy officer at Ecoveritas.
Key takeaways:
· The rules apply to UK businesses processing more than 50 tons of packaging destined for household or public bins, which have a turnover of £2 million or more annually.
· The regulations also now use a traffic light system to assess packaging recyclability. ‘Green’ materials are widely recycled, while ‘red’ materials – such as packaging with built-in batteries or certain inks and fibers – are difficult to recycle and attract higher fees.
· Firms must also apply government-approved formulas to calculate the proportion of fibers, fillers and additives in their products. Many products will need to be broken down into their separate materials – for example, an empty jam jar may contain elements classified as red, amber and green. Businesses that fail to report accurately risk having all of their products automatically default to the “red” category, potentially increasing fees
· Failure to comply with the measures correctly could result in penalties of up to 5% of turnover, in addition to higher costs incurred by not filling out paperwork correctly.
- Some firms have already received invoices of up to £1 million.
- Many companies remain unaware of their full EPR obligations, risking fines of up to 5% of turnover.
