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The £50m WEEE gap

Electricals producers are paying £50 million more for the recovery of their products than the process actually costs, according to a report.

Consultancy 360 Environmental found that waste electrical and electronic equipment producers were paying over the odds to meet their legal obligations.

The firm’s report, commissioned by IT manufacturing giant Hewlett Packard, said the price of WEEE evidence notes had stayed stable for the past three years.

However, the cost of collection and treatment had fallen over this time, and the value of the recovered material had risen.

“There appears to be little motivation within the market to reduce prices to producers who generally have very little understanding of market conditions and no visibility on market prices,” the report said.

“This is leading to producers paying an increasingly disproportionate level of margin into the system with little sign of any change.

“The current gap between cost of collection and recycling vs charge to producers has been indicated to be in the region of more than £50m.”

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