Full Net Cost
The complete cost of collecting, sorting, and recycling household packaging waste minus any revenue from selling recycled materials. Under pEPR, producers must cover the full net cost through fees.
Full net cost refers to the total cost of managing household packaging waste — collection, sorting, treatment, and recycling — minus any revenue generated from selling the recycled materials. Under pEPR, producers must collectively cover this full net cost.
Full net cost calculation includes:
- Collection costs — kerbside collection vehicles, crews, and equipment
- Sorting costs — MRF processing
- Treatment/recycling costs — reprocessing charges
- Minus material revenue — income from selling sorted recyclables
- Infrastructure costs — capital and maintenance
The shift to full net cost is the biggest financial change under pEPR. Previously, the PRN system covered only a fraction of actual costs. Now, waste management fees must cover everything. The Scheme Administrator calculates and collects these costs based on actual data from local authorities. This ensures adequate funding for collection and recycling infrastructure, supporting higher recycling rates.
Related Terms
Scheme Administrator
The central body responsible for calculating, collecting, and distributing waste...
Household Packaging
Packaging that ends up in the household waste stream, discarded by consumers at ...
Waste Management Fees
The fees charged to producers under pEPR to cover the full net cost of collectin...
Packaging Recovery Note
A tradeable certificate issued by accredited reprocessors proving that a tonne o...
Kerbside Collection
The collection of recyclable materials and waste from households at the kerb or ...
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