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7. Plan Performance

7 Plan Performance

7.1 How Money Flows

The arrows show the direction of payments for deposits and container recycling fees (CRF) and the movement of beverage containers.

Flow of money and containers

7.2 Follow the Money


Container Recycling Fees
When the revenue from unclaimed deposits and from sales of collected material are insufficient to cover the cost of recovering and recycling a specific container type, a non-refundable recycling fee is added to the container to make up for the shortfall.

Other Fees
Revenues from service provider contracts.

Sale of Processed Containers
A portion of the cost of recovering aluminum and plastic containers, the two largest product categories, is covered by the value of the commodity collected. The prices for aluminum and plastic were strong and combined with the favourable exchange rate from USD to CAD in 2017, commodity revenue was higher than forecast which partially contributed to the rise in our operating reserve levels. The average price for aluminum was $0.91 per pound ($0.76 in 2016) and plastic was $0.17 ($0.13 in 2016).

Unredeemed Deposits
Encorp is paid a deposit on every container sold. Deposits unclaimed are used to fund the system.

Revenue Chart 2017
Where the money comes from
Container Recycling Fees 55.8 Million 55.4%
Other Fees and Income* 11.3 Million 11.2%
Sale of Processed Containers 14.0 Million 13.9%
Unredeemed Deposits 19.7 Million 19.5%
Total Revenues 100.8 Million 100%
*Other Fees includes electronics, packaging & printed paper and interest income.
Note: Calculations may show slight variances due to rounding.


Transportation and Processing
Contracted trucking companies collect containers from depots and grocery retailers and take them to processors where they are compacted for shipment.

Management of contracts, collection of revenues and payment of expenses.

Consumer Education & Awareness
Programs that encourage consumers to return containers for recycling.

Container Handling Fees
Per-unit fees paid, in addition to deposit reimbursement, to depots for collecting containers.

Deposit Refunds
Paid to depots and grocery retailers to reimburse them for the deposits they have refunded to consumers.

Expenditures Chart 2017
Where the money is spent
Operations Expenses 29.3 Million 31.3%
Administration Expenses 4.5 Million 4.8%
Consumer Awareness 4.0 Million 4.3%
Handling Fees 54.8 Million 58.5%
Other Expenses** 1.0 Million 1.1%
Total Expenditures 93.6 Million 100%
**Other Expenses include amortization and foreign exchange gain/loss.

7.3 Operating Reserves

Purpose of the Operating Reserves

Encorp’s reserves are built upon the corporation’s fundamental principles of no cross-subsidization of container types and equitable treatment of brand owners. The operating reserves are required to provide stability to the system over the long-term, to avoid cross-subsidization of container types, and to facilitate and stabilize the frequency of Container Recycling Fee (CRF) changes.

CRF's may be raised, reduced or even eliminated in any given year to keep reserves within their targeted ranges. Reserves can also be reduced by increasing spending on activities designed to improve the recovery rate for a specific container type. The table shows the levels of reserves over recent years.

Revenue and Reserves chart
Slide the table left and right. (Scroll bar is below table.)
Reserve / (Deficit)
$32,625,751 $(1,267,354) $31,358,397 $(6,402,659) $24,955,738 $7,438,787 $32,394,525
Reserve / (Deficit)
1,180,382 344 1,180,726 100,795 1,281,521 (215,477) 1,066,044
$33,806,133 $(1,267,010) $32,539,123 $(6,301,864) $26,237,259 $7,223,310 $33,460,569

Management of the Operating Reserves

Encorp’s financial model requires a reasonable level of operating reserves to provide stability to the system. When these reserves rise above the amount deemed to be reasonable, measures are taken to reduce them to the appropriate level.

These reserves have been used to fund system costs that may otherwise have been reflected in consumer prices.

Encorp’s operating reserves are maintained to meet the corporation’s cash flow requirements, recognizing normal business volatility balanced over a period of three to five years.

On average, we pay about $3 million per week to customers, depots, transporters and processors. Experience shows that our reserve level needs to be based on the cash flow requirements for six weeks during the peak season. This year, the operation reserve grew by $7.2 million, well within the required level.

Slide the table left and right. (Scroll bar is below table.)
  Gross Revenue
Including Deposits
Total Expenses
Including Deposit Refunds
Operating Reserves/(Deficit)
Year end
2013 161.7 158.4 3.3 30.7
2014 162.7 159.6 3.1 33.8
2015 162.0 163.3 (1.3) 32.5
2016 155.4 161.7 (6.3) 26.2
2017 171.5 164.3 7.2 33.4

7.4 Container Recycling Fees

CRF stands for Container Recycling Fee. This is the fee Encorp charges to cover the net cost of recycling a beverage container type after any unredeemed deposits and commodity revenues for that container type have been used.

CRFs have been in place for beverage containers in British Columbia for more than 18 years. The CRF varies for each beverage container category. As a not-for-profit product stewardship agency, Encorp Pacific only charges the net cost for recovering and recycling beverage containers. The CRF reflects current economic conditions such as commodity prices and beverage volumes.

Slide the table left and right. (Scroll bar is below table.)
Container Type 2016 2017
Aluminum 1.0 cent 2.0 cents
Plastic ≤ 1L 3.0 cents 4.0 cents
Plastic > 1L 4.0 cents 4.0 cents
Polystyrene 3.0 cents 4.0 cents
Glass ≤ 1L 9.0 cents 9.0 cents
Glass > 1L 40.0 cents 16.0 cents
Bi-Metal ≤ 1L 3.0 cents 4.0 cents
Bi-Metal > 1L
Drink Boxes ≤ 500 ml 1.0 cent 1.0 cent
Drink Boxes 501 ml - 1L 5.0 cents 5.0 cent
Drink Boxes > 1L
Gable Top ≤ 1L
Gable Top > 1L 6.0 cents 6.0 cent
Drink Pouches
Glass Wine & Spirits ≤ 1L 11.0 cents 12.0 cent
Glass Wine & Spirits > 1L 16.0 cents 16.0 cent
Non-Refillable Beer, Cider, Cooler Glass ≤ 1L 7.0 cents 9.0 cent
Non-Refillable Beer, Cider, Cooler Glass > 1L 23.0 cents 16.0 cent
Liquor Plastic ≤ 1L 4.0 cents 3.0 cent
Liquor Plastic > 1L 8.0 cents 8.0 cent
Liquor Bag-In-Box 1.0 cent 1.0 cent