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Agency ‘considering response’ to two firms over PRN non-compliance

The Environment Agency is “considering appropriate offence response options” against two producers who failed to meet their 2021 packaging obligations through acquiring PRNs.

Defra said the interim group will “support the design, establishment, and mobilisation of the packaging EPR scheme

The two producers were deemed during an investigation to have committed “significant offences” and the Agency is now “considering appropriate offence response options”.

However, the other five companies who did not comply only received warning letters, despite one of them also being deemed during the investigation to have committed a “significant offence”.

This is likely to spark concern among some compliance schemes who have previously warned that if the repercussions are not serious enough, they will not act as a deterrent and could see other companies opt not to pay high prices for PRNs in the future.

The Agency explained that following a review of the non-compliance, four of the seven producers were deemed minor breaches and received warning letters.  Three were deemed significant offences and were subject to further investigation.

Of the three who were further investigated for significant offences, one received a warning letter and the case is now closed, while the Agency is considering what to do with the remaining two.

Compliance

At the end of 2021 targets for all materials were met when using excess PRNs from 2020 known as ‘carry-in’. However, the data sparked huge fears over non-compliance in the glass and plastic markets, where exceptionally high PRN prices were recorded (see letsrecycle.com story).

Compliance specialists had raised concerns that some of the seven registered producers that failed to meet their PRN obligations had made a “conscious effort” not to comply with the obligations, which represent a legal obligation, due to high prices. Others said this could be a paperwork issue and be dealt with through an enforcement undertaking.

Glass

The price of glass remelt PRNs reached as high as £190 towards the end of 2021, and the issue was even raised in parliament (see letsrecycle.com story).

At least three of the seven companies who did not comply are thought to be in the glass industry. In at least one instance, it is understood a producer refused to pay the higher prices for PRNs being quoted.

The update on enforcement of 2021 PRN non-compliance arrives as the regulator also revealed that a further nine companies did not comply in 2022 (see letsrecycle.com story). This compares with three in 2020.

 

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