The Producer Responsibility Obligations (Packaging and Packaging Waste) Regulations 2024

SCHEDULE 7 The scheme administrator

Regulation 58 Power to delegate functions 1 (1) The scheme administrator may enter into an agreement with a public body or with a private sector body for that body to perform any of the functions of the scheme administrator on behalf of the scheme administrator. (2) The scheme administrator must obtain the consent of each of the appropriate authorities before entering into an agreement under sub-paragraph (1). (2A) Sub-paragraphs (2B) and (2C) apply where the person appointed as the scheme administrator is the Secretary of State or a statutory body. (2B) The scheme administrator may appoint a body (a “Producer Responsibility Organisation” or “PRO”) to— (a) perform on behalf of the scheme administrator, or (b) provide advice, recommendations or support to the scheme administrator in relation to the performance by the scheme administrator of, such of the scheme administrator’s functions as are specified in the appointment. (2C) The scheme administrator must, before appointing a body as a Producer Responsibility Organisation, obtain the consent of each of the appropriate authorities to— (a) the appointment of that body; (b) the proposed duration of the appointment; and (c) the functions which it proposes to appoint that body to perform. (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Appointment of a PRO: supplementary 1A (1) The scheme administrator may only appoint a body as a PRO if the scheme administrator is satisfied that the body— (a) is a not-for-profit body corporate but is not a charity; and (b) is suitable for appointment as a PRO, taking into account— (i) the level of support for the body’s appointment among persons appearing to the scheme administrator to represent the interests of producers and other persons likely to be affected by the appointment; (ii) the extent to which the conferral on the body of the functions which the scheme administrator proposes to appoint it to perform would provide value for money; (iii) if the body, or another body under the management or control of the same persons, has previously been appointed as a PRO, its performance of the functions conferred on it under any previous appointment; and (iv) such other matters as the scheme administrator considers relevant, having regard in particular to the nature of the functions which it is proposed to confer on the PRO. (2) The appointment of a PRO— (a) must be for a specified period (“the appointment period”); and (b) continues until the end of the appointment period unless revoked under paragraph 1B, even if the person appointing the PRO ceases to be the scheme administrator before the end of that period. (3) The appointment of a PRO may, subject to sub-paragraph (4), be subject to such conditions (if any) as the scheme administrator considers appropriate. (4) But the appointment of a PRO may not give the scheme administrator power to direct the PRO in relation to the performance of functions conferred on the PRO under the appointment. (5) The scheme administrator may, with the consent of the appropriate authorities— (a) extend a body’s appointment as a PRO; or (b) vary a body’s appointment as a PRO by conferring additional functions on the body or by removing functions from the body. (6) The scheme administrator may, with the consent of the appropriate authorities and the agreement of the PRO, by notice in writing vary or revoke any condition to which a PRO is subject. (7) In sub-paragraph (1), a “not-for-profit body corporate” means a body corporate which uses money earned by, or donated to, that body corporate solely to pursue its objectives and which does not distribute income to its members, directors or officers except for reasonable remuneration for goods or services supplied to that body. Revocation of appointment of a PRO 1B (1) The scheme administrator may, with the consent of the appropriate authorities, revoke the appointment of a PRO before the end of the appointment period if it appears to the scheme administrator that— (a) the body has failed to meet one or more conditions of its appointment; (b) the body has knowingly or recklessly supplied to the scheme administrator information which is false or is misleading in a material particular— (i) in respect of its application for appointment as a PRO; or (ii) in connection with the performance of its functions as a PRO; (c) the body has been convicted of an offence involving financial impropriety or fraud; (d) an insolvency event, within the meaning given in Schedule 2, has taken place in relation to the body; (e) the body has become subject to a petition or application for winding-up, administration or receivership; (f) the body is likely to be unable to comply with the conditions of its appointment, by reason of a change of circumstances which the body has notified to the scheme administrator; (g) the body has, in relation to any activities which are regulated by the appropriate agency— (i) failed to comply with a notice issued by the appropriate agency; (ii) failed to pay any amount owed by it to the appropriate agency; or (iii) had a civil sanction imposed on it by the appropriate agency, had an enforcement undertaking accepted by the appropriate agency, or been convicted of an offence upon prosecution by the appropriate agency. (2) The scheme administrator— (a) must revoke a body’s appointment as a PRO if the scheme administrator considers— (i) that a mandatory exclusion ground set out in Schedule 6 to the Procurement Act 2023 (“the 2023 Act”) applies to the body or to a connected person; and (ii) either— (aa) the circumstances giving rise to the application of the exclusion ground are continuing or likely to occur again; or (bb) the body, or a connected person, is on the debarment list under section 62 of the 2023 Act by virtue of a mandatory exclusion ground set out in Schedule 6 to that Act; (b) may revoke a body’s appointment as a PRO if the scheme administrator considers— (i) that a discretionary exclusion ground set out in Schedule 7 to the 2023 Act applies to the body or to a connected person; and (ii) either— (aa) the circumstances giving rise to the application of the exclusion ground are continuing or likely to occur again; or (bb) the body, or a connected person, is on the debarment list under section 62 of the 2023 Act by virtue of a discretionary exclusion ground set out in Schedule 7 to that Act. (3) If the scheme administrator proposes to revoke a body’s appointment as a PRO, it must first give the body a notice of its intention to do so (a “notice of intent”). (4) A notice of intent must be in writing and must— (a) state that the scheme administrator proposes to revoke the body’s appointment as a PRO, and the reasons why; (b) specify the date on which it proposes that the revocation will take effect; (c) state that the body may make representations in connection with the proposed revocation of its appointment; (d) specify the form and manner in which, and date by which, any such representations must be made. (5) The scheme administrator must consider any representations that are made in the specified form and manner and by the specified date. (6) The scheme administrator must give the body notice in writing of its decision whether to revoke its appointment as a PRO and, where the decision is to revoke its appointment, the date on which the revocation will take effect. Transfer of assets etc. 1C (1) The scheme administrator may transfer relevant property, rights and liabilities of an outgoing PRO to— (a) the scheme administrator; or (b) another PRO appointed to take over the functions of the outgoing PRO, as a consequence of the outgoing PRO ceasing to be a PRO. (2) The relevant property, rights and liabilities of the outgoing PRO that may be transferred under paragraph (1) are— (a) data created and compiled specifically for the purposes of the functions of the scheme administrator under these Regulations; (b) intellectual property; (c) IT systems; (d) contracts entered into by the outgoing PRO for the purposes of the functions it has been appointed to carry out on behalf of the scheme administrator; (e) staff and human resources systems. (3) The scheme administrator may only transfer such of the relevant property, rights and liabilities set out in paragraph (2) as constitute the minimum assets required to enable the continued exercise of the scheme administrator’s functions under these Regulations. (4) The property, rights and liabilities that may be transferred under this paragraph include property, rights and liabilities that would not otherwise be capable of being transferred or assigned by the outgoing PRO. (5) A transfer of property, rights and liabilities under this paragraph takes effect despite the absence of any required consent or concurrence to or with the transfer and as if— (a) no liability existed in respect of a contravention of a requirement for consent or concurrence, and (b) there were no interference with any property or right, that would otherwise exist by reason of any provision (whether under any enactment or agreement or otherwise) having effect in relation to the terms on which the outgoing PRO is entitled to the property or right, or subject to the liability, in question. (6) For the purposes of this paragraph, any property, right or liability of the outgoing PRO is relevant property, or a relevant right or liability, only if it was acquired by, or the outgoing PRO became subject to it, in the course of, or in preparation for, the exercise of its functions as a PRO pursuant to an appointment under paragraph 1A. (7) In this paragraph and in paragraphs 1D and 1E, an “outgoing PRO” means a body whose appointment as a PRO expires or is revoked under paragraph 1B of this Schedule. Transitional provision in connection with paragraph 1C 1D (1) Anything that— (a) is done (or has effect as if done) by or in relation to an outgoing PRO in respect of any property, right or liability transferred under paragraph 1C; and (b) has effect immediately before the transfer takes place, is to be treated as done by or in relation to the transferee. (2) There may be continued by or in relation to the transferee anything, including legal proceedings, that— (a) relates to any property, right or liability transferred under paragraph 1C, and (b) is in the process of being done by, on behalf of or in relation to the outgoing PRO immediately before the transfer takes place. (3) In this paragraph, “the transferee” means the scheme administrator or new PRO, as the case may be, to whom the property, right or liability is transferred. Continuity in exercise of functions 1E Anything done by an outgoing PRO in connection with the exercise of its functions has effect as if done by— (a) the new PRO, in a case where it is appointed to take over the functions of the outgoing PRO; or (b) the scheme administrator, in any other case. Principles 2 In exercising its functions, the scheme administrator is to act in accordance with the following principles— (a) that it must act fairly in— (i) the treatment of relevant authorities and producers across the United Kingdom; (ii) the exercise of any discretions conferred on it by these Regulations; and (iii) the recovery of disposal fees and administration fees owed by producers and holding companies, and the distribution under these Regulations of the amounts received by it in respect of disposal fees; (b) that it must take into account differences in circumstances and, where it considers it appropriate, adjust the way in which it exercises its functions to reflect those different circumstances, in different parts of the United Kingdom; (c) the need to incentivise— (i) the use of environmentally sustainable packaging; (ii) the prevention of packaging becoming waste; (iii) an increase in the reuse of packaging, and in the quantity and quality of packaging materials recycled; and (iv) a reduction in the disposal of packaging waste; (d) the need to support the provision of efficient and effective waste management services by relevant authorities; (e) the need to use its resources in the most efficient and effective way; (f) the need to facilitate achievement of the environmental effects set out in the policy statement published under regulation 127; (g) that it must exercise its functions transparently, accounting fully for all monies received by it, and disbursed by it in the exercise of its functions; (h) that it is not to earn a profit from carrying out its functions under these Regulations. Communications 3 (1) The scheme administrator must make and maintain effective arrangements for— (a) communicating with; and (b) where required by these Regulations, or the scheme administrator otherwise considers it appropriate to do so, consulting, the persons referred to in sub-paragraph (2). (2) Those persons are— (a) producers, packaging manufacturers, scheme operators, relevant authorities and waste management companies, or, where appropriate, persons appearing to the scheme administrator to represent the interests of any of those classes of persons; and (b) any other persons appearing to the scheme administrator to have a legitimate interest in— (i) the way in which it exercises its functions; or (ii) the development of— (aa) its proposals to exercise its functions; or (bb) its strategy or annual operational plan. Public information 4 (1) The scheme administrator must make available to members of the public, and to businesses that discard packaging waste, information on— (a) the reuse of packaging; (b) the recovery, including recycling, and disposal of packaging waste; and (c) the prevention of packaging litter. (2) The scheme administrator may satisfy the obligation in sub-paragraph (1) by any of the following measures— (a) conducting, or making arrangements for, national or local public information campaigns— (i) to inform members of the public and businesses how to manage their packaging waste; (ii) to encourage members of the public and businesses to reuse and recycle more packaging waste; (iii) on the prevention of packaging litter; (b) providing information or advice to the public on any of the matters referred to in paragraph (a) by any other means; (c) publishing information on packaging, including on the recyclability of different types of packaging in use, and the extent to which different producers are using recyclable packaging and other types of environmentally sustainable packaging. (3) In determining the type of public information campaigns to be carried out, and what the focus of those campaigns should be, the scheme administrator may take account of the following factors— (a) the recycling rates of packaging waste of different packaging categories; (b) the packaging waste items collected for recycling by relevant authorities, and whether any new items are added to recycling collections; (c) differences in recycling behaviour of members of the public and businesses and differences in collection systems in different areas within the United Kingdom; and (d) any other factor the scheme administrator considers relevant. Guidance, etc., to producers 5 (1) The scheme administrator may provide, or arrange for the provision of, information, guidance, and any other support the scheme administrator considers necessary, to businesses which are producers, to assist them in understanding and meeting their disposal cost obligations under these Regulations. (2) The scheme administrator may determine what level of information, guidance or other support is required for the purposes of this paragraph, taking into account the needs of different classes of producer. (3) In sub-paragraph (1), “disposal cost obligations” means— (a) the obligation to pay disposal fees and administration fees under Part 5; and (b) any other obligations which are connected to that obligation, including obligations to keep records, make reports of information, and carry out recyclability assessments, which are used for the purposes of calculating the producer’s disposal fees and administration fees. Guidance, etc., to relevant authorities 6 (1) The scheme administrator must produce guidance on the methodology and procedure that the scheme administrator will use and, where relevant, the factors that the scheme administrator will take into account, in— (a) assessing the efficient disposal costs of relevant authorities under regulation 70; (b) assessing the waste income of relevant authorities under regulation 71; and (c) determining whether to adjust, and making adjustments to, the net efficient disposal costs of relevant authorities under regulation 72(8). (2) The scheme administrator must publish the guidance under sub-paragraph (1) as soon as reasonably practicable after regulations 70 to 72 come into force, in such a manner that it is likely to come to the attention of relevant authorities, producers and any other persons likely to have an interest in the guidance. (3) The scheme administrator must, each year— (a) review the guidance under sub-paragraph (1); and (b) publish revised guidance by 1st November in that year, if it decides to amend the guidance which is to apply in relation to assessments and adjustments for the following assessment year. (4) The scheme administrator may provide, or arrange for the provision of— (a) guidance to relevant authorities on the information the scheme administrator needs to assess the chargeable disposal costs of a relevant authority for the purposes of Chapter 4 of Part 5; and (b) information, guidance, advice and any other support the scheme administrator considers necessary to relevant authorities as to how they may— (i) deliver efficient and effective waste management services; and (ii) increase the amount of packaging waste collected for recycling. (5) The scheme administrator may determine what level of information, guidance, advice or other support is required for the purposes of sub-paragraph (4), taking into account the needs of different relevant authorities. Methodology and guidance on assessment of recyclability 7 The scheme administrator must— (a) develop, or arrange for the development of, and maintain— (i) a methodology which producers must use to assess the recyclability of the packaging they supply; (ii) guidance on the use of that methodology; (b) publish that methodology and guidance in the way appearing to the scheme administrator to be most appropriate to bring them to the attention of producers. Statement of policy on modulation of disposal fees 8 (1) The scheme administrator must prepare and issue a statement of its policy with respect to modulating under regulation 64 the amounts calculated under regulation 62 and used in determining a liable producer’s disposal fee, in which it explains the circumstances in which those amounts may be increased, reduced or left unchanged. (2) Subject to sub-paragraph (6), before issuing a statement of policy under sub-paragraph (1), the scheme administrator must— (a) send a draft of the proposed statement to each of the appropriate authorities; and (b) publish a draft of the proposed statement in the way appearing to the scheme administrator to be most appropriate for the purpose of bringing it to the attention of producers and other parties appearing to the scheme administrator to have an interest in the policy. (3) The draft must be accompanied by notice that representations about the proposal may be made by an appropriate authority, by producers who are liable to pay disposal fees or by any other person having an interest in the proposal, to the scheme administrator within a specified time, which may not be less than 28 days after the day on which that notice is given. (4) Before issuing the statement, the scheme administrator must have regard to any written representations made to it in accordance with sub-paragraph (3). (5) If the statement is issued, the scheme administrator must publish with it an account, in general terms, of the written representations made to it in accordance with sub-paragraph (3), and the scheme administrator’s response to them. (6) Sub-paragraphs (2) to (5) apply in relation to all statements of policy (including revised statements of policy), except for the first statement of policy published by the scheme administrator under sub-paragraph (1). (7) The scheme administrator must— (a) publish the first statement of policy issued under sub-paragraph (1) as soon as practicable after the day on which the scheme administrator is appointed under regulation 58; (b) review its statement of policy at least once every three years, and if necessary issue a revised statement of policy. Lists 9 (1) The scheme administrator must compile a list of items of packaging which are commonly disposed of in public bins or as ground litter (“commonly binned or littered items”), from the best evidence available to the scheme administrator. (2) The scheme administrator must compile a list of— (a) the items which are collected for recycling from households by each relevant authority in each part of the United Kingdom; (b) those items which are collected for recycling from households by more than 75% of the relevant authorities in the United Kingdom responsible for waste collection. (3) The scheme administrator must update the lists compiled under sub-paragraphs (1) and (2) at least once every two years after they are first published, and if the scheme administrator considers it necessary, more often. (4) The scheme administrator must publish the lists compiled under sub-paragraphs (1) and (2), and any updated versions of those lists, in the way which appears to the scheme administrator to be most likely to draw them to the attention of producers, relevant authorities and any other persons appearing to the scheme administrator to have an interest in the lists. Complaints procedure 10 The scheme administrator must establish a procedure to manage and resolve complaints by producers and relevant authorities as to the way in which the scheme administrator exercises its functions under the Regulations, or the way in which a Producer Responsibility Organisation appointed under paragraph 1(2B) of this Schedule or a body with which the scheme administrator enters into an agreement under paragraph 1(1) of this Schedule exercises the functions conferred on that body, including in particular— (a) complaints by liable producers in relation to the assessment of— (i) the disposal fee or the administration fee which they are liable to pay for an assessment year under regulation 60(2); or (ii) any recalculation of their disposal fee or administration fee under regulation 79; and (b) complaints by relevant authorities in relation to— (i) the assessment of their chargeable disposal costs under regulations 70 to 72; (ii) any decision concerning the payments they are due to receive towards their chargeable disposal costs under regulation 76; or (iii) any recalculation of their chargeable disposal costs under regulation 80. Strategy 11 (1) The scheme administrator must before the end of the period of 6 months beginning with the date on which it is appointed publish a strategy setting out— (a) its objectives and functions; (b) the outcomes it will seek to achieve; (c) its governance arrangements; (d) how it proposes to deliver its objectives and to exercise its functions; (e) how, by performing its functions, it will contribute to— (i) the use of environmentally sustainable packaging by producers who are subject to obligations under these Regulations; (ii) the provision of efficient and effective waste management services by relevant authorities, and the collection of a common set of packaging materials for recycling from households; (iii) enabling consumers and businesses to discard packaging waste correctly through the provision of public information and communication campaigns; (iv) the achievement of the environmental effects set out in the policy statement required under regulation 127; (v) the achievement of other relevant policy objectives in each nation of the United Kingdom. (f) its approach to engaging with stakeholders and other organisations having a legitimate interest in the way in which it performs its functions; (g) how it will measure and report on— (i) the delivery of its objectives; (ii) the impact of the contributions referred to in paragraph (e). (2) Before publishing the strategy, the scheme administrator must send a draft of its proposed strategy to each appropriate authority, and allow the authority at least one month to make representations to the scheme administrator on the strategy. (3) The scheme administrator must take any representations made to it under sub-paragraph (2) into account in finalising its strategy for publication. (4) If the scheme administrator makes any changes to its strategy, it must publish an updated version as soon as reasonably possible. (5) The strategy must be reviewed and updated at intervals of not more than 5 years after it is first published. Operational plan 12 (1) The scheme administrator must publish an operational plan each year by 28th February setting out— (a) its priorities for the financial year starting on the following 1st April (“the operational year”); (b) forecasts of— (i) the total amount of chargeable disposal costs of all relevant authorities in the operational year; (ii) the amounts of public information disposal costs and administration costs the scheme administrator expects to incur in the operational year; (iii) the amounts of disposal fees and administration fees it will seek to recover in the operational year; (c) the approach it proposes to take in the operational year to calculating disposal fees payable by liable producers and assessing chargeable disposal costs of relevant authorities under Part 6; (d) the public information campaigns and other communications activities it proposes to conduct in the operational year; (e) any other activities it intends to carry out in the operational year; and (f) the key performance indicators it will apply. (2) Before publishing the operational plan, the scheme administrator must send a draft of its proposed operational plan to each appropriate authority and allow the authority at least one month to make representations to it on the plan. (3) The scheme administrator must take any representations made to it under sub-paragraph (2) into account in finalising its operational plan. (4) If the scheme administrator makes any changes to its operational plan, it must publish an updated version as soon as reasonably possible. Annual report 13 (1) The scheme administrator must publish a report each year by 30th September which— (a) describes the activities undertaken by the scheme administrator in the exercise of its functions during the financial year ending on 31st March of that year; (b) sets out— (i) the total amount of disposal fees raised from producers; (ii) the total amount paid to each relevant authority towards its disposal costs; (iii) how the scheme administrator has used its resources in the most efficient and effective way; (c) describes— (i) the impact of its fees policy on the use of environmentally sustainable packaging; and (ii) the contribution the scheme administrator has made to the achievement of the outcomes described in its strategy; (d) sets out what activities the scheme administrator has undertaken in the United Kingdom as a whole and, where relevant, in each nation of the United Kingdom; (e) describes its performance against the key performance indicators for the United Kingdom as a whole and, where relevant, for each nation of the United Kingdom. (2) Before publishing the report, the scheme administrator must send a draft of its proposed report to each appropriate authority and allow the authority at least one month to make representations to the scheme administrator on the report. (3) The scheme administrator must take any representations made to it under sub-paragraph (2) into account in finalising its report. Accounts 14 (1) The scheme administrator must— (a) keep proper accounts and proper accounting records in relation to the exercise of its functions under these Regulations (“the relevant functions”); (b) prepare in respect of each financial year a statement of accounts giving a true and fair view of the state of affairs and the income and expenditure of the scheme administrator in relation to the relevant functions, including details of— (i) the fees paid to the scheme administrator by producers under regulation 60(2); (ii) the amounts distributed under regulation 76 to— (aa) each relevant authority; and (bb) relevant authorities in each nation of the United Kingdom; and (iii) any amounts owed to, and by, the scheme administrator. (2) Each statement of accounts must— (a) be consistent with IFRS Accounting Standards; and (b) comply with any directions given jointly by all of the appropriate authorities, so far as those directions are consistent with IFRS Accounting Standards, as to— (i) its content and form; (ii) the methods and principles to be applied in preparing it. (3) The scheme administrator must publish the statement of accounts prepared under sub-paragraphs (1) and (2) before 30th September after the end of the financial year to which it relates. (4) In this paragraph “accounting records” include all books, papers and other records of the scheme administrator relating to, or to matters dealt with in, the accounts required to be kept by virtue of this paragraph.