EPR Guide - Flipbook - Page 31
Costs and Financial
Implications of EPR
Extended Producer Responsibility introduces signi昀椀cant new costs for many businesses, so it’s crucial
to understand and manage the 昀椀nancial impact. Here we break down the cost components of EPR and
considerations for pricing, margins, and contracts:
Breakdown of EPR-Related Costs
1. Waste Management Fees: These are the big-ticket costs – annual fees per tonne of packaging that
fund recycling services. As detailed earlier, for 2025 the rates ranged roughly from £110–£520 per
tonne depending on material. A company’s total fee is “tonnes of each material × rate per tonne.”
For example, if you put 200t of packaging (mixed materials) into UK households in 2024, your 2025
bill might be on the order of £50,000–£100,000+ (depending on material mix). With modulated fees
in 2026+, costs will diverge more: companies using non-recyclable packaging will see higher bills
(multipliers up to 2× by 2028), whereas those with mostly recyclable packaging might see lower-thanaverage rates.
Key point: EPR fees could be several percent of product revenue for some sectors.
2. Registration/Admin Fees: Minor in comparison, but include them. The annual registration fee
(a few hundred pounds or more for large producers), plus any fees to join a compliance scheme or
consultant costs.
3. Data Collection & Systems Costs: There’s an internal cost to compliance, staff time, possibly
software or weighing equipment upgrades. This is harder to quantify but should be noted as part of
your cost of doing business under EPR.
4. PRN Costs (Legacy system): In 2023/24, PRNs had their own market prices (which can be
volatile). Some companies paid substantial amounts for PRNs (e.g. plastic PRN prices spiked in
some years). However, from 2025 onward, because EPR covers the full net cost, PRN prices might
normalize or the requirement may eventually roll into EPR fees. Still, budget for PRNs in the interim if
you have a large obligation, it could be in the tens or hundreds of thousands for large recyclers, albeit
EPR fees overshadow PRNs now.
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