Deposit return scheme administrator Exchange For Change has announced there will be a phased introduction of producer fees for the system due to come into force from next October, with producers paying nothing for more than a year.
The fees, which are the charges drinks producers will pay to help cover the costs of operating the scheme, will be set at zero for the first 15 months, before kicking in at 2.3p per unit for PET containers.
The decision follows a massive row that helped to derail the launch of Scotland’s proposed scheme, with Circularity Scotland forced to slash its proposed fees in 2022, but only after a major backlash from producers.
Producers faced a 3.17p fee for plastic containers in the original Scottish plans, though they were reduced to 2.21p before the scheme was eventually ditched.
Exchange for Change said the announcement of phased producer fees followed extensive consultation and engagement with industry over several months. The Grocer understands there was major pushback from producers over the prospect of hefty fees from day one and warnings it could damage take-up in its vital early stages.
Exchange for Change said it hoped to minimise costs for businesses at the scheme’s outset, with the zero deposit lasting until December 2028.
Based on current data, it is anticipated that producer fees then will be 0.6p per unit for aluminium and steel containers and 2.3p per unit for PET containers, projected to take effect from January 2029 to December 2032.
This will be reviewed, validated and reconfirmed in May 2027.
Exchange For Change said it would continue to review the producer fee as further cost forecasts, contractual pricing and operational data became available, and would reconfirm the fees following another validation process in May 2027.
Producer fees will then continue to be reviewed annually.
“Publishing the producer fees is another major milestone delivered as we move towards the launch of the deposit return scheme in October 2027,” said Exchange For Change CEO Russell Davies.
“This will help businesses in their preparation and planning. Our approach to setting the producer fees has been founded on collaborative and constructive engagement with industry, and I would like to thank all of those whose contributions helped to inform and guide the outcome.
“We recognise the breadth of work being undertaken by industry to prepare for launch in October 2027. Setting a 0p producer fee for the first 15 months of the scheme is intended to support businesses in the early stages of the scheme.
“As a not-for-profit organisation, we are committed to ensuring that producer fees always remain as low as possible, while supporting the long-term financial sustainability of the scheme.”
No comments yet