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The Deposit Scheme for Drinks Containers (England and Northern Ireland) Regulations 2025

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Recycling of in-scope material from returned refund items

This section has no associated Explanatory Memorandum

68.—(1) The deposit management organisation must make arrangements for the recycling of the in-scope material from which returned items are made.

(2) The arrangements made for the purposes of paragraph (1) must include provision conferring a right of first refusal, for each specified period, on registered scheme producers.

(3) A right of first refusal is a right to purchase the appropriate quantity (if any) of each type of in-scope material that has been recovered from returned items (a “recovered material”) during the relevant specified period for such consideration as represents the market value of that in-scope material.

(4) For the purposes of paragraph (3)

(a)the “appropriate quantity” of a recovered material is an amount which does not exceed the relevant proportion of that recovered material;

(b)market value” means the price at which the in-scope material would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of relevant facts.

(5) The relevant proportion of a recovered material is to be calculated as follows—

Formula

where—

SPA” is the number of deposit items with containers made wholly or mainly from the recovered material and supplied by the registered scheme producer during the specified period;

TPA” is the total number of deposit items with containers made wholly or mainly from the recovered material and supplied by all registered scheme producers during the specified period.

(6) In this regulation

returned items” means the refund items collected or accepted by the deposit management organisation under or in accordance with regulation 43 or 66;

specified period” means the period specified in arrangements made under paragraph (1).

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