The Welsh government has still yet to appoint a Deposit Management Organisation (DMO) for the operation of its deposit return scheme (DRS) in the country - with less than 18 months to go until the scheme is due to go live.
Exchange for Change - which is already appointed to lead the administration of the DRS in England, Scotland and Northern Ireland - were the only applicant to oversee operational design and delivery of the scheme in Wales, but that application was refused by the Welsh government just weeks ahead of the Welsh Elections in May.
Now, the Association of Convenience Stores (ACS) has warned the failure to appoint a DMO will make it extremely difficult to launch a successful DRS by October 2027 in Wales.
ACS chief executive, Ed Woodall, said: “We know from over a decade of working on the introduction of DRS in the UK that it takes time to get the details right. This is a change that requires major infrastructure and logistics, new facilities in hundreds of stores, and strategic mapping of return points across the country.
“It’s extremely concerning to see the Welsh government fail to make progress on the appointment of the scheme administrator, especially as their proposed scheme is more complex and more costly than the rest of the UK.
“Retailers in Wales are the still in the dark about how and if it’s going to be viable…”
“Retailers in Wales are the ones that are going to have to make this scheme work, but with less than 18 months to go they’re still in the dark about how and if it’s going to be viable. It must a top priority of the parties that form the next Welsh government to either reconsider their approach on the existing DMO application, or urgently present a suitable alternative for the administration of the scheme.”
The ACS has consistently called on the Welsh government to introduce a scheme that is fully interoperable with the rest of the UK.
Also responding to the news, a spokesperson for Exchange for Change said: “We’re disappointed our application to be the scheme administrator for the DRS in Wales has not been approved at this time. Industry has always been clear that the right outcome for a DRS is for there to be a fully interoperable scheme across all four nations from October 2027 - one that reflects the realities of how the UK drinks market operates. We strongly believe that having one scheme administrator across all countries within the UK is the best way to achieve this.
“While we were clear in our application that significant challenges existed with the regulations in Wales, we believe it suggested practical and effective ways to overcome these.
“Nevertheless, we fully respect the outcome of the application process and will continue to engage closely with the Welsh government in our role as the scheme administrator for DRS in England, Scotland and Northern Ireland. Our focus remains firmly on the set-up of the scheme across the rest of the UK, and our work continues at pace to build a scheme that is as effective and efficient as possible from October 2027.”
The Welsh government has since reopened the application process for DMO for the upcoming Welsh DRS, which will close on 2 June this year.
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