Understanding our annual fee for packaging producers
We have sent out for the first time an invoice covering the annual fee for packaging producers who are registered in the producer register. In the following, you can read more about what the fee covers, the calculation basis, and the different elements of the invoice.
What does the annual fee cover?
The annual fee covers costs incurred by DPA in connection with administration of the producer responsibility system for packaging. These costs cover a number of tasks, including the following:
Register: It is a statutory duty for all covered companies to register in the producer register. We are in charge of developing and operating the register.
Allocation: We calculate the allocation of packaging waste to producers per category/end-user for each municipality. The practical collection of waste is assumed by collective schemes, so the expenses associated with collection, therefore, are not part of our costs.
Financial guarantee: Further to the allocation we calculate the financial guarantee that each collective scheme must provide for one or more allocated municipalities. The financial guarantee is to ensure that funds are available to meet the commitments of the collective schemes in connection with waste management, if the scheme is not able to do so (e.g. in case of bankruptcy).
Scoping decisions: We are authorised to decide whether a company or a product is subject to producer responsibility.
Guidance: We guide companies, collective schemes, and other stakeholders in current legislation and use of the producer register.
Good to know about our fees
The annual fee covers our costs from the start of the producer responsibility system in 2022 up to and including 2024. Furthermore, it covers DPA’s budgeted costs for 2025.
If you have registered before 31 December 2024, you have received invoice for annual fee in 2025.
If you have registered after 31 December 2024, you have not received an invoice in 2025 but will receive it in 2026 based on your quantities put on the market in 2025.
The fee is calculated based on:
- Reported quantities of packaging (measured in kilograms) for 2024
- DPA’s costs for development and administration
Thereby, the magnitude of the fee depends on the quantities you have put on the market – and thereby the magnitude of your market share in relation to total quantities of packaging.
In 2025, the total costs for development and administration amount to DKK 60 million. This includes:
- DPA’s budgeted operating expenses, such as staff costs, rent, and IT operations
- A capital reserve to ensure liquidity
- Funds allocated for the potential winding down of the scheme
- Repayments on debt related to the development of the producer responsibility register for packaging
Invoicing to producers is staggered in relation to our budgeting year. To secure liquidity in the first months of the year capital reserves have been set side corresponding to 5/12 of the approved operating budget.
Funds have also been set aside for a winding up of the scheme, if necessary. The purpose is to ensure that all commitments and expenses can be met in case DPA is to cease operations. Since 2025 is the first operating year in the field of packaging, all reserves are allocated. In the coming years the amount will be adjusted as needed.
The amount also covers repayment of debts taken out over a three-year period in connection with the development and implementation of the producer register for Packaging.
Our fee covers solely administrative costs and not costs for waste management where in the latter case there may be a different in costs among categories. Therefore, the unit price is the same for all invoice lines.
The fee is calculated on the basis of total quantities of products put on the market (in the form of market shares) within each product area – regardless of the category in question.
Each invoice line represents a category that you have registered in the producer register.
The invoice for packaging is based on the quantities in kilograms put on the market by the company in the previous year, and it shows quantities broken down on packaging categories.
We send out invoices for annual fee mid/end August (with the exception of fees for single-use plastic products that are sent out by the end of 2025).
Ordinary terms of payment apply.
In case of non-payment the following process is used:
- After 30 days a reminder is forwarded with a time limit for payment of 14 days.
- If the payment has still not been received, another reminder is forwarded.
- After that the case is submitted to the Danish Debt Collection Agency.
We expect that the annual fee to DPA will be lower next year, as the costs for development of the new platform will largely be covered by this year’s fees. Presumably, there will be no need for covering the same magnitude of administration costs in the future.