Increase in Deposit Fees for Plastic Packaging in Latvia

Learn about the planned increase in deposit fees for plastic packaging for beverage manufacturers in Latvia, as announced by the Public Utilities Commission. Discover the proposed tariff adjustments and their impact on different types of packaging materials, along with insights into the performance and ownership structure of DIO, the company managing the deposit system.

Increase in Deposit Fees for Plastic Packaging in Latvia

Effective from the 1st of June 2024, Latvia is set to implement an increase in deposit fees for plastic packaging used by beverage manufacturers, as outlined in a recent announcement by the Public Utilities Commission (SPRK), reported in the Latvian Herald.

The adjustments, proposed by Depozīta iepakojuma operators (DIO) LLC, entail a rise in the cost of colored plastic single-use deposit packaging from EUR 0.0252 to EUR 0.0256 per unit. Similarly, transparent plastic single deposit packaging will witness an increase from EUR 0.0068 to EUR 0.0164 per package.

Conversely, the membership fee for certain packaging types is slated to decrease. This includes iron containers, single-use glass, and reusable glass (both all-purpose and individual design), with the membership fee for aluminum packaging remaining at zero.

LETA previously reported data from DIO, indicating the quantities of various types of beverage containers released on the market and their respective return rates. For instance, in the previous year, 138.4 million single-use clear plastic beverage containers were released, with an 85% return rate. Additionally, 101.5 million units of single-use colored plastic beverage containers were released, with an 89% return rate.

Diana Imaka, DIO's Production and Finance Director, explained that the deposit system membership fee pertains to deposit packers, which includes beverage manufacturers and importers. These fees support the management of deposit packaging in the system, with all funds reinvested for system operation and development.

The beverage container deposit system was introduced in Latvia on February 1, 2022. DIO, as the designated operator, reported a turnover of EUR 18.474 million and profits of EUR 4.086 million in 2022. The company, established in 2020 with a base capital of EUR 124,500, is owned by several entities, including "Beer and Drink Packaging Union" LLC, "Coca Cola HBC Latvia" LLC, and others, each holding varying percentages of ownership.


Keywords

Latvia , Public Utilities Commission , plastic packaging , deposit fee , beverage manufacturers

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