More than 60% of WEEE schemes back £3.50 fee
Defra has officially confirmed that a £3.50 per tonne ‘flat-rate’ compliance fee will be set for 2018, after a consultation showed that 19 of the 30 responding compliance schemes backed the proposals.
Of the 30 respondents, 28 agreed that the secretary of state should set a compliance fee, while seven recommended Valpak’s proposals instead and a further four were undecided.
In a release, Defra confirmed that the fees will be set using a methodology drawn up by the Joint Trade Associations (JTA).
The JTA scheme will see compliance schemes pay based on an ‘escalator’; so the further away a scheme is from its target, the higher the fee it has to pay. This is according to proposals published in October.
This, the proposals say, would also reflect the extent to which a scheme has been collecting directly from local authorities and whether it is a member of the PBS, as well as whether nationally a particular stream of WEEE is in surplus or in deficit against the national target.
JTA’s initial proposal has been amended to include a flat overhead fee of £3.50 per tonne to reflect variable costs associated with bid preparations for local authority collection contracts.
Defra said today that ministers have now approved the WEEE Compliance Fee proposal submitted by the JTA (subject to minor modification) – and have decided that it should be administered by Mazars.
A statement from Defra said: “The compliance fee is being set to include a flat overhead fee of £3.50 per tonne to reflect variable overhead costs associated with bid preparations for local authority collection contracts, on-going management of operational contracts and the costs of auditing. The WEEE source adjustment premium in the proposal would not apply.”
The method used to create the compliance fees is set on an annual basis and is used by compliance schemes and obligated businesses to pay.
The chosen methodology set for calculating the fee last year was put forward by Valpak, who ‘lost out’ this time.
JTA proposals had been chosen for calculating the fee in two previous years, 2014 and 2015.
The compliance fee is intended to discourage PCSs from collecting volumes of WEEE significantly above their collection targets and then seeking to sell the surplus evidence to schemes seeking more evidence to meet their obligations.
Reference: Let’s Recycle