WEEE could cost up to £500m

Delayed recycling rules will reach the UK statute books next July, but many uncertainties remain

The government has today published its latest consultation document about the Waste Electrical and Electronic Equipment (WEEE) directive, confirming it aims to launch the controversial legislation next July - almost two years after it was originally meant to be implemented under European Union (EU) plans.

However, the proposals are likely to face continued opposition from some equipment makers. The DTI has admitted that an early regulatory impact assessment revealed the new law could cost manufacturers up to £500m a year, much of which would be passed onto customers in the form of higher prices.

Interested parties now have until the 17th October to provide feedback on the draft implementation plan and regulatory impact assessment.

Energy minister Malcolm Wicks said the government had been right to delay the implementation of the directive - despite the threat of legal action from the European Union - claiming the postponement had provided time to develop workable proposals. He argued that many countries that implemented the directive on time were now facing difficulties with the scheme.

Under the current proposals a national network of WEEE collection, recycling and disposal facilities will be set up, equipment producers will then have to register with approved compliance schemes and contribute to the cost of collection, recycling and disposal in proportion with their market share. For example, a company with 20 percent market share will have to pay 20 percent of the cost of handling the waste equipment.

IT directors will see little direct impact as a result of the legislation, according to Deborah Huntington at the DTI, as suppliers will be responsible for collecting the old equipment they replace when delivering new products. Products being disposed of without a replacement will have to be dealt with by firms in accordance with existing waste regulations included in the Environment Act, she said.

However, some experts believe the new directive will impact customers in the form of significantly higher IT hardware prices as producers pass on the cost of compliance to customers. One report from analyst firm Gartner has claimed the legislation could add as much as $60 to the price of a computer.

Huntington admitted early regulatory impact assessments from the DTI had concluded WEEE could cost UK industry up to £500m a year.

Under the current proposals, suppliers will be free to decide whether to pass the cost onto customers and will also be able to decide whether to make the cost of compliance a visible add-on to price tags - effectively a WEEE tax - as has been the case in Ireland or absorb it into current prices.

Wicks said it was up to firms how they handled the cost of compliance, but argued that more responsible firms would not adopt visible pricing. He also claimed that ultimately any cost passed onto customers will be eroded as the legislation "will influence manufacturing standards and R&D [to make it easier to recycle products cost effectively]".