An Obligated Business must register annually, either directly with the Environment Agency or through a compliance scheme as a packaging producer. Companies must submit annual data returns on their packaging activities to calculate their obligation which translates into a fee to be paid.
Obligation fees are based on:
- Quantity and type of material reported
- Activities carried out (manufacturing, selling etc.)
- Current UK recycling targets
Obligation fees are charged through the purchase of Packaging Recovery Notes (PRNs), which provide evidence to show that an equivalent tonnage of the packaging your business produces has been recycled. PRNs are based on open market prices, which may fluctuate throughout the year; this can have significant financial implications for businesses in terms of budgeting and cost.
Managing your data therefore is important, to ensure that what you report is correct and accurate so that you don't pay more than you should. Compiling this information is different for every company and for some, this can be cumbersome and time-consuming.