To find out how the new Regulations will affect you, click on the appropriate button below;

Manufacturer or Importer of batteries in to the UK

Retailer or Distributor of batteries

Schools, Colleges and Public buildings

Civic Amenity Site

A Business or Organisation generating waste batteries

A member of the public
The growth of mobile communications and the use of power equipment has increased our
dependence on battery powered equipment. As the majority of mobile phone users change their
handset (and battery) every two years the number of discarded batteries is set to rise. Discarded
phones usually end up as landfill - a process that uses up both landfill space and wastes recoverable
materials.
Changes in legislation have resulted in organisations now being held directly responsible
for the waste which they produce. Items such as battery waste that was usually disposed of with
all other waste now needs to be handled individually and recycled where possible.
Waste Batteries and Accumulators Regulations 2009
Summary
The long awaited battery recycling regulations have this week finally been approved by Parliament. Although little has changed since the last draft published just before Christmas there are a few tweaks in response to wide spread lobbying by producers and other stakeholders.
In summary the impact on producers, retailers, users and recyclers can be summarised as follows;
1 Portable batteries only - Neither industrial nor vehicle battery producers need join a scheme. However, producers of products containing batteries will be included.
2 Producer de minimus - Producers of less than 1 tonne per annum of batteries (typically around 30-40,000 portable batteries) per annum will not need to join a scheme but register directly with the EA or SEPA.
3 Scheme costs - Each compliance scheme is going to incur the following fees;
Application fee - £17,000
Annual subsistence fee - £118,000
Annual scheme member fee - £680
4 Small producers (< than 1 tonne placed on the market) will register with the EA or SEPA for an annual cost of £30 but will not have to contribute to the cost of collection and recovery. The Government expect this cost to be born entirely by the larger producers.
5 The de minimus level for retailers has been set at 32 kg of batteries placed on the market. Below this level the retailer will not be required to offer retailer take-back.
6 Exempt batteries are limited to those going into armaments or outer space.
7 Annual battery recovery levels set to meet Directive’s recycling targets;
2010 - 10%
2011 - 18%
2012 - 25% Mandatory target
2013 - 30%
2014 - 35%
2015 - 40%
2016 - 45%
8 Approved recyclers will pay a fee of £2,590 per site to recover batteries. Reduced fee of £500 for recyclers of less than 15 tonnes of portable batteries or 150 tonnes of automotive and industrial batteries per annum. Exporters will also have to pay the same fee for each site abroad to which they wish to export batteries. As Lithium and NiCd are handled on the whole by two specific sites in Europe most recyclers will be paying the same fee three or more times.
There is a reduced fee of £500 for annual volumes less than 15 tonnes.
9 Public promotions will be the financial responsibility of each scheme, including education and explanation. No financial limit has been set but the collection performance of each scheme will be monitored and poor performance may lead to withdrawal of approval.
10 Waste Management Licensing Regulations are being amended to allow for the storage of up to 5 tonnes of lead acid batteries and 10 tonnes of portable batteries without a WM licence. At the moment this excludes Scotland.
11 Producer has a financial obligation to fund the cost of collection, treatment and recovery for their individual share of the market based on batteries placed on the market in the preceding two years. Schemes will not be able to trade recycling evidence. Schemes maybe exposed to the costs of being too successful in encouraging end user returns.
12 Retailers and distributors are duty bound to accept batteries free of charge if the battery type (chemistry) is the same as those sold.
13 Schemes will be duty bound to accept all types of batteries free of charge both from retailers, collectors or the public.
14 Producers and distributors cannot declare the cost of these Regulations to the public.
Timetable
The timetable for introducing the Regulations is as follows;
5 May 2009 - are introduced
31 May 2009 - Deadline for applications for scheme approval
15 October 2009 - Deadline for producer membership
1 January 2010 - Beginning of first annual compliance period
What can we expect?
We expect the high entry costs for schemes will limit applicants to no more than possibly four, whilst we expect the de minimus levels set for producers will result in less than 600 registered producers in the first year.
The challenge is to determine the cost of compliance in advance to enable producers to make an educated decision as to which is the best scheme for the year ahead. There is uncertainty as to the financial implications for schemes, or their members, that perform better or worse than average.
Registration costs assuming 3 registered schemes
If we end up with 3 compliance schemes then the true administrative cost of compliance will look something like this:
3 application fees at £17,000 - £51,000
3 annual subsistance fees at £118,000 - £354,000
600 member EA fees at £680 - £408,000
The Government revenue = £813,000 + £762,000 per year thereafter
Scheme Costs
3 set up costs at £50,000 - £150,000
3 running costs at £80,000 - £240,000 pa
Public promotional costs Year 1 - £4,000,000 (BERR suggest £3-5mill)
Year 2 onwards £1,500,000
Total costs - £5,203,000 yr1: £1,652,000 per year thereafter
This is before we consider the all important costs of the collection and recycling of the batteries.
Collection and recycling costs
With typical collection and treatment costs across the sector running at around 2 pence per battery* placed on the market (est. 1 billion), the total cost of compliance could exceed £20 million per annum.
* This costing is at odds with those outlined by BERR in their consultation document (Table 1 page 131) of the evidence base they suggest a cost for collection, sorting and recovery of £3,018 per tonne (7.5 p per battery) in 2010 dropping to £1,062 per tonne (2.7 p per battery) in 2012, in contrast to Table 4, page 135 where they predict a cost just for collection at £10,000 per tonne (25 p per battery). Assuming a mixture of collection methods and variety of service providers our average of 2 pence per battery placed on the market, for collection and treatment is considered conservative. We have based our calculations on an average of 40 batteries per kg.
Battery producers
BatteryBack is currently applying to be the first approved compliance scheme in the UK. Guaranteeing low cost compliance for all sizes of producer our offer is £2,000 per annum and 1 pence per battery placed on the market.
Battery retailers
From the 1st February 2010 all retailers selling over 32kg of batteries per year will have to offer free collection and recycling to their customers. BatteryBack offers you free recycling now for all registered retailers.
Local Authorities and economic operators
If you wish to join the thousands of registered battery collection points, visit our website to register for free.
Battery consumers
Help us recycle your batteries. Please visit our website www.batteryback.org to find the nearest collection point to you. By early next year over 30,000 retailers, schools and public buildings will have a free Battery Collection Point.
The Government have finally published their draft Waste Batteries and Accumulators Regulations 2009. Following the consultation last Summer there have been a number of key changes which, if they remain, will have a significant impact on producers, retailers and the recycling sector.
The key developments are;
1. Neither industrial nor vehicle battery producers need join a scheme. However, producers of products containing batteries will be included.
2. Each compliance scheme is going to incur Government imposed fees of £166,000 to set up and £149,000 per year thereafter plus £5,000 per scheme member (who is not a small producer*) per annum.
3. They have defined a small producer as a manufacturer or importer who puts on the UK market less than 3 tonnes per year of portable batteries. Small producers will have to join a scheme but will not have to contribute to the cost of collection and recovery. The Government expect this cost to be born by the larger producers.
4. The de minimus level for retailers has been proposed at 16 kg of batteries placed on the market and a retail area of less than 280 sq metres. Below these levels the retailer will not be required to offer retailer take-back.
5. Batteries going into outer space will fortunately be exempt.
6. The Government have chosen a graded target level for annual recovery levels;
Year |
Target recovery level |
Mandatory |
| 2010 | 10% | |
| 2011 | 18% | |
| 2012 | 25% | yes |
| 2013 | 30% | |
| 2014 | 35% | |
| 2015 | 40% | |
| 2016 | 45% | yes |
7. The Government also plan to charge £2,590 per site to recover batteries. Exporters will also have to pay the same fee for each site abroad they wish to export batteries. As Lithium and NiCd are handled on the whole by two specific sites in Europe most recyclers will be paying the same fee three or more times.There is a reduced fee of £500 for annual volumes less than 15 tonnes.
8. The Government expect the schemes to take on the financial responsibility to promote collection via information campaigns (advertising) and cooperate with other schemes and the EA in producing a coherent message. No financial limit has been set but the collection performance of each scheme will be monitored and poor performance may lead to withdrawal of approval.
9. At the same time, the Government are amending the Waste Management Licensing Regulations to allow for the storage of up to 5 tonnes of lead acid batteries and 10 tonnes of portable batteries without a WM licence. At the moment this appears to exclude Scotland, where it may prove impossible to sell batteries legally in the absence of clear direction from SEPA.
10. Whilst it is not mentioned in the draft Regulations, BERR are stating that schemes will not be able to trade recycling evidence. With the interim targets for recycling not being mandatory there is no incentive to trade in the first 2 years. However, it does mean that schemes are exposed to the costs of being too successful in encouraging end user returns.
11. Retailers are duty bound to accept batteries of the same chemistry as those sold free of charge if the battery type (chemistry) is the same as those sold.
12. Schemes will be duty bound to accept all types of batteries free of charge both from retailers, collectors or the public.
Timetable
We can now guess at the timetable for introducing the Regulations as follows;
Date |
Event |
| May 2009 | Regulations are introduced |
| 31 May 2009 | Deadline for applications for scheme approval |
| 15 May October 2009 | Deadline for producer membership |
| 1 January 2010 | Beginning of first annual compliance period |
As a result of strong opposition to the high compliance costs outlined in the draft, it is possible there maybe further delays in the timetable.
What can we expect
If the Regulations are introduced as the draft is worded then it is probable there will be only one scheme. Whilst this is possibly not the intention of the Government, the figures virtually rule out any other possibility.
Now the financial implication is limited to portable batteries and the de minimus is 3 tonnes we can expect less than 50 obligated businesses. Two companies represent over two thirds of the total output. As for small producers the Government estimate 1,000 companies, we believe it will be nearer to 500 in the first year.
We can therefore estimate the costs of compliance as follows:
3 registered schemes
If we end up with 3 compliance schemes then the true cost of compliance will look something like this:
Item |
Cost |
| 3 application fees | £17000 |
| 3 annual scheme fees | £149000 |
| 50 member EA fees | £5000 |
| Total: £250,000 | |
| The Government earns £748,000 + £697,000 per year thereafter. | |
Scheme costs
Item |
Cost |
| 3 set up costs at £50,000 | £150,000 |
| 3 runbng costs at £80,000 | £240,000 pa |
| Launch promotion costs | £4,000,000 (BERR suggest £3-5 mill) |
| Public promotion estimated costs | £500,000 pa |
| Total: £5,638,000 | |
| yr1: £1,437,000/year thereafter |
Assuming small members will pay a share of the scheme costs (500 schemes members at say £500 each), then the cost per large member will average £107,760 in the first year, including the set up cost element of £4,020 and launch promotional costs of £80,000 per member. This is before we consider the all important costs of the collection and recycling of the batteries.
With typical collection and treatment costs across the sector running at around 2 pence per battery* placed on the market (est. 1 billion), the total cost of compliance by 2012 will exceed over £21 million a year or an average of £420,000 per producer pa.
*This costing is at odds with those outlined by BERR. In table 1 page 131 of the Evidence base they suggest a cost for collection, sorting and recovery of £3,018 per tonne ( 7.5 p per battery) in 2010 dropping to £1,062 per tonne ( 2.7 p per battery) in 2012, in contrast to Table 4, page 135 where they predict a cost just for collection at £10,000 per tonne (25 p per battery). Assuming a mixture of collection methods and variety of service providers our average of 2 pence per battery placed on the market, for collection and treatment is considered conservative. We have based our calculations on an average of 40 batteries per kg.
1 registered scheme
Compliance costs reduce to;
Item |
Cost |
| 1 application fee | £17,000 |
| 1 annual scheme fee | £149,000 |
| 50 member EA fees at £5000 | £250,000 |
| £416,000 | |
| The Government earns £416,000 + £399,000 per year thereafter | |
Scheme costs
Item |
Cost |
| 1 set up cost | £70,000 |
| 1 running cost | £100,000 pa |
| Public promotion estimated cost | £400,000 pa |
| Total: £986,000 | |
| yr1: £899,000 per year thereafter |
Assuming small members will pay a share of the scheme costs (500 schemes members at say £500 each), then the cost per large member will average £12,980 a year. More significant is the cost savings associated with having one national collection scheme rather than diluting efficiencies with competing schemes. Our own costing and experience clearly demonstrate the cost of collecting batteries, incorporated with our existing national fleet equates to a little below 1 penny per battery. Based on the estimate of 25,000 tonnes of batteries (40 batteries per kg) being placed on the market the cost will be around £10 million pa for the whole industry or an average of £200,000 per large producer. The substantial promotional costs of the launch, as proposed by BERR, will in large part be financed from the 1 pence battery recycling levy. The logic is simple: as the volumes and cost for recovery increase the need for promotion reduces. In the early months and years the targets are below the 25% basis level on which the costs have been based. It is our view the cost estimates set out by BERR in Table 1 page 131 are wrong and contradicted by their own evidence.
In summary having a single scheme will reduce total compliance costs, to the industry as a whole, by over £10 million per year.
No one likes a monopoly
It is hoped the Government can be persuaded to reduce the cost of entry and make it easier to set up a scheme. This way we will have more schemes competing to keep down costs, whilst not lumbering the industry with unnecessary bureaucracy and admin costs. Other member states have ended up with expensive monopolies, with members powerless to influence cost.
There is a solution. BatteryBack has been established as an affordable solution. If the Government proceed as they have indicated we propose inviting other waste management companies, manufacturers and retailers to take shares in BatteryBack Plc. No shareholder will have overall majority and the business will then contract collectors and recyclers on normal commercial terms. This of course will result in only one scheme but as this will be run simply as a contracting and compliance body for the members there should be no conflict of interest.
Below we have set out the proposed market offering of the service.
BatteryBack - A draft service for draft regulations
The aim is to achieve low cost compliance. Based on the summary of the latest draft Regulations we have set out the cost model we plan to offer the market.
As we have demonstrated the lowest cost option is to have one scheme set up as an affordable solution, effectively owned by the key stakeholders. The Scheme would then seek out the commercially best contractors for collection and treatment.
We do not wholly agree with the Government’s idea that the 50 larger producers should carry the cost of the whole sector. We therefore propose a simple cost model which better reflects the real costs.
Proposed BatteryBack membership cost structure
Micro producers (less than 1 tonne output pa)
Item |
Cost |
| Scheme joining fee | £300 |
| Annual membership fee | £800 |
| Total: £1100 | |
| Battery collection and recovery fees included. | |
Small producers (1-3 tonnes output pa)
Item |
Price |
| Scheme joining fee | £500 |
| Annual membership fee | £500 |
| Total: £1000 | |
| Battery recovery fee of 2 pence per battery placed on the market. | |
Large producers (over 3 tonnes output pa)
Item |
Price |
| Scheme joining fee | £2000 |
| Annual membership fee | £2000 |
| Total: £4000 | |
| Battery recovery fee of 1 penny per battery placed on the market | |
In the first two years the surplus revenue from fees raised will be used to promote battery collection or rolled over to the following compliance period to offset costs.
Retailers and registered collection points
The service will be entirely free, however, there will be a refundable deposit for BatteryCans. Currently there are 3 sizes of BatteryCan. Please refer to our website.
These costs are based on the current draft and our interpretation of the Regulations. Actual costs will be confirmed when the Regulations are issued. We anticipate this will be early May 2009.
BatteryBack is already offering free battery collection to registered WasteCare customers. There are already over 1,000 BatteryBack collection points throughout the UK.
Sorted - £2000 and 1 penny per battery
Despite the fact the Government have yet to publish the draft Battery Recycling Regulations which were promised last July, BatteryBack are on track to have over 1,000 free collection points throughout the UK by Christmas. In addition, a number of major retailers are aiming to launch BatteyBack in the New Year. Government delays may mean the implementation of the Regulations may be delayed until late in 2009, WasteCare are committed to help fund customers to promote battery recycling to ensure Britain is best placed to meet its legal commitments as set out in the Battery Directive. Further delays may result in Britain being fined by the European Commission. “As we already have the lowest cost model in Europe and we are ready to go, it seems odd that the Government are to risk being fined. Further delays will cost producers, retailers and eventually users more”. Explains Simon Perfect, Commercial Director of WeeeCare Plc.
Remploy e-cycle – part of Remploy, the UK's leading provider of sustainable employment services for disabled people – is to play a significant role in the UK’s first-ever free national battery recovery service.
Launched on 1 July, the scheme enables batteries of any type and size to be disposed of in specially-designed ‘BatteryCans’ collection canisters which are to be stationed at more than 30,000 local authority civic amenity sites, schools and supermarkets in the UK.
Created by WeeeCare plc ahead of new Battery Recycling Regulations which are expected to be introduced after the European Battery Directive comes into force on September 26, the service is being operated by the company BatteryBack.
The directive states that 25 per cent of all portable batteries must be recycled by 2012, rising to 45 per cent by 2016. Currently the UK recycles less than three per cent of portable batteries, with more than 30,000 tonnes of batteries being discarded every year.
For the launch of the service, WeeeCare – which manages the UK’s largest compliance scheme for waste electrical and electronic equipment (WEEE) – is combining their existing national collection network of over 28,000 sites with Remploy e-cycle and battery recycler Revatech to ensure the lowest battery compliance costs anywhere in Europe.
E-cycle’s involvement in the scheme will be the provision of a full and secure battery sorting service as well as pre-treating the collected batteries before recovery.
Tony Stroud, general manager of Remploy e-cycle, said: “The growth of mobile communications and the use of power equipment has led to an increase in dependence on battery-powered equipment. E-cycle is delighted to be making a significant contribution to the ever-expanding battery recycling market.
“Items such as battery waste that were usually disposed of with all other waste now need to be handled individually and recycled where possible. WeeeCare Plc’s recovery scheme will enable manufacturers and importers of batteries to dispose of them responsibly and reduce the amount of waste going to landfill. In addition, the association with e-cycle enables stakeholders to meet their corporate social responsibility (CSR) objectives as they are helping to provide sustainable jobs for disabled people.”
E-cycle, which employs more than 230 people across four sites in England, specialises in taking IT equipment that has reached the end of its working life and refurbishing it to a standard that allows it to be re-deployed, sold or responsibly disposed of in accordance with data and waste legislation. This includes the EU’s recently introduced Waste Electrical and Electronic Equipment (WEEE) Directive, which aims to minimise the environmental impact of electrical and electronic equipment by increasing re-use and recycling, and reducing the amount going to landfill.
Peter Hunt, chief executive of WasteCare, WeeeCare’s parent company, said: “The supply agreement with Remploy e-cycle to sort and pre-treat the batteries will be part funded by the value of recovered metals. We have the lowest collection cost structure in Europe, so the cost to retailers will be zero, whilst we expect the cost to producers to be no more than 1p per battery produced. This is less than a third of the cost being charged in most other EU countries.”
Tony Stroud added: “Batteries contain hazardous material which, if consigned to landfill, can have an adverse effect on soil. Recycling batteries is a much more environmentally friendly and responsible approach.
“Businesses, including battery manufacturers, importers and retailers are also being increasingly dictated to by their customers, who see CSR as a priority. By working with e-cycle, that responsibility comes in the form of helping to provide sustainable jobs for the 230 disabled people it employs.”
The Environment Agency (EA) have this week ruled that portable batteries are exempt from hazardous waste consignment note fees. Following a submission by WasteCare to the regulator earlier this year, the EA have announced the exemption of portable batteries from hazardous waste consignment note fees. This is in line with car batteries and fluorescent tubes and has to be welcomed by industry in wake of the new Regulations, expected later this year, which impose strict new targets for recycling.
"The derogation effects the collection and movement of small quantities of waste portable batteries and this decision will certainly help the UK meet our recycling targets under the EU Directive. The UK currently recycles 3% of portable batteries placed on to the market and by reducing the cost burden on small volume collections this has to help with the target of recycling 25% by 2012." explains Graeme Parkin, Operations Director of WasteCare. BatteryBack have recently launched Britain's first free recovery route for all types of batteries. WasteCare are currently looking into other derogations that will help to encourage recycling and reduce the burden on industry.
The Governments response is exactly in line with our expectations. At the same time, the launch of Free BatteryBack has gone well. Morrisons and Bradford Council have this week launched a joint initiative at stores, schools, civic amenity sites and public buildings within the BD post districts. See separate press release.
From next week the BatteryBack.org website will give locations of over 1,000 free collection points for all types of batteries. Type in your own postcode and it will identify 10 of your nearest public access sites. Currently these will be mainly civic amenity sites. As new public access sites are opened the website will be updated.
Since Free BatteryBack was announced we have had a steady stream of enquiries, with over 200 of the new BatteryCans being ordered by retailers, councils and large commercial premises. With a clearer vision of what we can expect from the Regulations we are now pressing ahead by ordering an additional 1,000 BatteryCans for immediate distribution. BatteryBack is also underwriting all treatment and recovery costs for 2008.
It is estimated that Britain will need over 80,000 collection points throughout the country. With the likely introduction of interim collection targets combined with a delay in the introduction of the Regulations, it is essential that BatteryBack gets an early lead. The aim is to have at least 2,000 trial sites by this October. Once the draft Regulations are published the roll out will be stepped up.
BatteryBack, the free national battery collection scheme, has welcomed the Government’s response to the recent consultation process on the implementation of the Waste Batteries and Accumulators Directive.
“This is a pragmatic and sensible interpretation of the Directive and is completely in line with our expectations,” Peter Hunt, Chief Executive of WasteCare, commented.
He said the main points that could be taken from BERR’s response included:
To see the full Government response
'click here'Compliance scheme WeeeCare is forming a consortium with battery manufacturers and major retailers to launch a free national recovery scheme for all types of batteries.
The scheme will be operated by BatterBack, an affordable option which has been set up for the introduction of the battery recycling regulations, due to come into effect this autumn.
The directive states that 25% of all portable batteries must be recycled by 2012, rising to 45% by 2016. Currently, the UK recycles less than 3% of portable batteries, with more than 30,000 tonnes of batteries being discarded every year.
Simon Perfect, WeeeCare's commercial director, said that BatteryBack would combine the collection of batteries with the collection of other hazardous waste.
He says: "Batteries are normally collected in weights below 20Kg. It is, therefore, environmentally and commercially unacceptable to collect batteries on their own."
BatteryBack will provide BatteryCans - Specially-designed collection canisters - at local authority civic amenity sites, schools and supermarkets. Made from recycled plastic, the BatteryCans will store batteries before collection.
BatteryBack have also entered into a supply agreement with Remploy to regionally sort and pre-treat the collected batteries before recovery.