Electrolink holds talks with WEEE partners over collection costs

The event is to be attended by contractors and local authorities. Ahead of the meeting, representatives of Electrolink are understood to have had meetings with the Department for Business Enterprise and Regulatory Reform (BERR) over the WEEE regulations, relating to costs and timing of evidence requirements.

The issue has become important because Electrolink has a substantial volume of recycling evidence to sell, which is used to pay its contractors at civic amenity sites for WEEE collection work. Electrolink has a low level of obligation and consequent need for the evidence, but has a large number of CA sites in its remit and so has surplus evidence to sell.

Electrolink has been of the view that certain costs involved in handling and collecting WEEE should be covered within the sum it charges for the recycling evidence. And, the scheme is also concerned that compliance schemes now do not need to buy evidence until April 2008 to cover the first compliance period of July-December 2007.

But, BERR has reiterated recently that a number of costs which Electrolink considered to be included in the collection process, and could rightly be charged within the evidence price, should not be counted in. Accordingly, Electrolink is under pressure to cut its prices.

BERR has explained that for WEEE arising at local authority designated collection facilities (known as DCFs and usually found at civic amenity sites), producer costs are those incurred from the DCF onwards, and should not include on-site or DCF operational costs. This would exclude some CA site handling costs and most administration costs. The site infrastructure costs are covered by local government funding or through the Valpak-run retail scheme – the Distributor Take Back system – which sees retailers paying some costs.

However, producer compliance schemes can charge for container costs, collection and loading costs to transfer stations and treatment facilities, and the gate fee at reprocessors' sites. They can also charge for transport, including for LDA.

“Conflicting”

BERR has also said that the compliance schemes can reach agreement with local authorities to enhance the WEEE collection at an agreed commercial rate, but this cannot be included within the price of evidence traded. However, Electrolink said it believed the government had been making contradictory statements on whether such costs could be passed on.

Barry Van Danzig, chief executive of Electrolink, said: “The problem is BERR seem to be making conflicting statements about market prices, which they really should not involve themselves in – they are, after all, not a financial regulator.”

Electrolink is of the view that a charge can be made for some of the handling costs on the CA site following its assessment of the WEEE Regulations.

The scheme also believes that producer compliance schemes needing evidence should not be waiting until April 2008 to buy any extra evidence they need. It has analysed the Regulations and believes that these clearly state that the producers have to finance collection during the compliance period.

Mr Van Danzig said: “Allowing producers to not buy evidence until months after the work has been carried out is not logical. It is a bit like the police stopping a driver and asking to see his insurance. Then a driver who does not have insurance, buys some and the police allow it to be backdated.”

Councils

A number of local authorities are expected to attend Friday's meeting, including Devon county council. A spokesman for the authority said yesterday: “After a competitive tendering process, Devon County Council entered into a contract with the Producer Compliance Scheme, Electrolink Recycling Ltd, to enable free collection and recycling of WEEE in the county. This has been working well and service to the public is continuing as normal.

“However, discussions are currently being undertaken with government and Electrolink to try and find a way forward to address issues of funding and trading of Evidence Notes, so that the Producer Compliance Scheme contractor can continue to operate the collection of WEEE in the county,” the Devon spokesman said.