Understanding the PRN system
Firstly, it is important that your finance team understands the fundamentals of the PRN system. PRNs and PERNs are the mechanism through which businesses obligated under the packaging regulations comply with legislation. Compliance in this system is achieved by purchasing volumes of PRNs determined by the amount of packaging they have placed on the UK market, and the recycling target for that particular material. They play a crucial role in the meeting of recycling targets set by regulatory bodies.
PRNs are sold on an open market which means that prices fluctuate according to supply and demand. The PRN system is designed so that when there’s a shortage of packaging recovery notes, the price of the recycling evidence will increase, stimulating the market, subsequently increasing the level of recycling; higher prices usually mean more recycling is being done.
Prices for each grade can also fluctuate due to economic, political and social variables. The Clarity team negotiate this volatility for our clients, and aim to keep them informed of these changes, in order to offer you the most cost-effective and low risk solutions.