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JTA details WEEE compliance fee mechanism

October 29, 2014

ewasteJoint Trade Association reveals further detail about its proposed mechanism for calculating the WEEE compliance fee.

The JTA, a group of nine UK trade associations in the electrical sector, has provided more detail about its mechanism for calculating the WEEE compliance fee, which it has proposed to the Department of Business Innovation and Skills (BIS) after it called for interested parties to submit proposals in accordance with the 2013 WEEE regulations.

The mechanism, which The Recycler reported on in early October, is described by the JTA as “a simple methodology” to calculate the compliance fee developed by UK economic consultancy group FTI which would be implemented using a “streamlined process”, operated by UK accountancy firm Mazars, in order to “distribute funds to local authorities”. JTA added that it has worked with three producer-led WEEE compliance schemes to develop this proposal.

There are several key elements to JTA’s proposal, including a different compliance fee for each WEEE stream, with each fee based on the average direct cost of transport for each stream. This average is “weighted so that PCSs with small tonnage collection do not distort the fee calculation”. Meanwhile, cost data is only needed from those PCSs that need to use the fee, so there is no need for all PCSs to provide data, something which “might require a change to the WEEE regulations”.

A further element involves a “smooth escalator” which “increases the fee payable, the further a PCS is away from meeting its target”, and should a PCS narrowly miss its target, the fee would be “close to the weighted average cost”. Conversely, if a PCS collects nothing, the fee would be “double the weighted average”.

JTA added that due to the positive value of almost all large household appliances, its proposal recommends a “zero fee” for this stream.

The following formula is used by the JTA to summarise the proposal:

formula

 

 

fn: the total Fee for the relevant stream for the PCS in question, in GBP.

kn: the weighted average net cost of collection for the stream, in GBP per tonne.

tn: the PCS’s target for the stream, in tonnes.

cn: the amount of the stream of WEEE collected by the PCS, in tonnes.

Richard Hughes, Chairman of the JTA and Technical Manager at the Association of Manufacturers of Domestic Appliances, said: “We are proud to have delivered a proposal that provides BIS with a complete package for operating the compliance fee. Using FTI, a professional economics group, gives us confidence that the JTA proposal will be effective at encouraging compliance by collection, is economically robust, and meets all the key requirements laid down by BIS.”

Simon Eves, Deputy Chairman of the JTA, Chairman of the Environment Strategy Council at techUK and Head of Environmental Affairs at Panasonic UK, added: “The JTA have worked closely with three producer led PCSs in the development of this proposal. Those PCSs have cooperated with FTI, independently providing data, to road test the proposed data collection and calculation mechanism. This has verified that the methodology is sound. Our proposal also provides a streamlined process, operated by Mazars, to distribute compliance fee funds to local authorities”.

The BIS consultation on the compliance fee proposals will close on 28 November 2014, with the final decision expected to be announced by mid-February 2015.

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