The Vehicle Certification Agency (VCA) will ensure electrical retailers and outlets make provisions for the proper disposal of WEEE.
Science and Innovation minister Malcolm Wicks said: "This agency has an important role to play in ensuring that distributors comply with their obligations under the WEEE Regulations.
Free-riding will not be tolerated, and a robust process will be in place to serve notice and ultimately prosecute distributors who are unwilling to become compliant.
"From 1 July, this agency will also make sure that retailers and distributors of electrical equipment play their part in helping household users dispose of WEEE at the end of life, as well as market surveillance and inspections."
The VCA was chosen to enforce the WEEE Directive as the agency has an experienced enforcement team, which deals with end of life vehicle regulations and noise emissions. The agency will receive extra funding from the DTI for this activity.
Distributors have until July 1 to provide facilities for customers to return electrical equipment or set up a collection point as part of the Distributor Takeback Scheme (DTS).