ACP urges for investigation of possible illegal practice in aluminium packaging recycling scheme

The Advisory Committee on Packaging (ACP) in the UK has urged the competition regulators to investigate the possibility of illegal restrictive practices in the responsibility scheme for aluminium packaging recycling.

The Committee expresses concern over the current price for packaging recovery notes (PRN/PERN) which has risen to around £100 per tonne. Such higher prices are seen when packaging recovery targets are missed, but, data shows the targets are likely to be achieved comfortably this year.

By the end of Q3, about 76,500 tonnes of aluminium packaging recycling had taken place against the full year target of 94,500 tonnes and a surplus is expected at the end of the year.

The UK’s Packaging Waste Regulations are based on accredited recyclers and exporters making PRN/PERNs available for packaging waste they have been responsible for recycling. This way, recycling operators gain additional funding to support recycling activity.

ACP points out that where a small number of accredited exporters and reprocessors are responsible for significant volumes of recycling, notes can be withheld, distorting the market and leading to price escalation.

Phil Conran, the ACP chair, said accredited operators appeared to be applying restrictive practices, which is compelling producers to pay unreasonable costs for PRN/PERNs to avoid non-compliance. However, it is not actually leading to additional environmental outcome.

‘Agencies are unable to take any action to force accredited operators to place the PRN/PERNs onto the market, thus limiting any action against restriction of the supply of evidence,’ he wrote.

The ACP has requested the Competitions and Market Authority to investigate the possibility of any illegal activity taking place in the PRN/PERN market in the form of restrictive practices.

‘We will also be working with Defra (government environment department) and the agencies to consider options to create a more stable system,” he concluded.

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