Fees & Remitting

Who Pays for All of This?

Recycling small household appliances is a complex undertaking with many moving parts, each of which costs money.

Our Funding Model

  • Members report, in confidence, their sales of small household appliances covered under the Regulation
  • We apply a fee to every unit sold with a view to one day collecting that product in our recycling stream
  • Members remit those fees to us
  • 100% of fees collected are channelled into our recycling program

It is at the sole discretion of a member to determine how or if they wish to recuperate any or all of the fees paid to our recycling program. However, members typically recuperate their recycling program investment in the form of an Environmental Handling Fee (EHF) applied at the point of sale of a designated program product.

Example:

  • CESA collects a fee of $0.25 on all hair dryers sold by Hanna’s Hairdryer Haven, a CESA member.
  • Hilary, a consumer, visits Hanna’s Hairdryer Haven and buys a brand new hair dryer.
  • At the till, an Environmental Handling Fee of $0.25 is applied to the sale of the hair dryer to Hilary.
  • When Hilary’s hairdryer reaches the end of its life, Hilary brings it to an ElectroRecycle collection facility, a CESA service provider
  • Hilary does not pay anything to drop off her unwanted hairdryer

It is important to clarify that EHFs are not taxes and no portion of CESA funding comes from or goes to government. That said, the EHF is itself taxable at the point of sale as it is considered part of the cost of the product to which it applies. GST/HST will be applied accordingly.

To Show or Not to Show?

In British Columbia, the Environmental Handling Fee:

  • May be shown separately on the product receipt at the point of sale
  • May be incorporated directly into the price of the product
  • May be absorbed, at the discretion of the program members and their subsequent customers

In some other stewardship programs, the EHF is often passed down through the supply chain to consumers at the retail level.

Whatever the approach to handling the EHF, the fee applied at the point of sale on a designated product will never exceed the fee paid by a member to CESA for the recycling of that product.

Here are the program fees for all regulated product categories, current as of October 1, 2018. You can read more about the fee changes in this blog post.

Product Category EHF Per Unit
until September 30, 2018
EHF Per Unit Effective October 1, 2018
1.   Kitchen Countertop – Motorized Appliances $            0.50 $            0.50
2.   Kitchen Countertop – Heating Appliances $            0.80 $            0.80
3.   Kitchen Countertop – Heating Appliances (coffee/tea) $            0.70 $            0.70
4.   Microwave Ovens
[previously Microwaves (large) and Microwaves (small) categories]
$            6.25 $           5.00
5.   Time Measurement & Display Devices $            0.40 $            0.20
6.   Weight Measurement $            0.40 $            0.30
7.   Garment Care Appliances $            0.70 $            0.60
8.   Air Treatment Appliances
[previously Air Treatment Appliances, Desk & Tabletop Fans categories]
$            1.00 $            0.95   
9.   Personal Care Appliances $            0.40 $            0.25
10. Full-size Floor Cleaning Appliances $            2.50 $            2.50
11. Smaller Floor/Surface Cleaning Appliances $            0.50 $            0.50
12. Test and Measurement Tools $            0.50 $            0.35
13. Hand-held Power Tools $            0.80 $            0.55
14. Bench-top, Demolition, Free-Standing Power Tools $            2.20 $            1.20
15. Sewing / Textile Machines $            2.75 $            2.75
16. Exercise Machines $            2.60 $            1.85
17. Sports, Leisure, Arts, Crafts, Hobby Devices $            0.75 $            0.75
18. Designated Very Small Items
[previously Part 1 & 2 Designated Very Small Items categories]
$            0.20 $            0.20   

Thanks for sharing. How did you come up with these fees?

Fortunately, the EPR model of recycling was already active for a number of product in a number of regions across the country. That meant that we could benefit from established industry best practices and garner important insights about fee-setting through frank dialogue with other stewardship groups operating in the same region.

Additionally, we set out on our fee-setting journey bound by a number of principles that we hold dear as an organization, including:

  • Fairness
  • Transparency
  • Balancing the number of categories with costs of administration
  • Ease of implementation
  • No “cross subsidization” of product categories. In other words, the cost of managing (collecting, transporting, processing, promoting, etc.) one product category should not be subsidized by the fees paid on another category.

We also recognized up front that the fees associated with the program needed to cover the cost of managing both historical and orphan products, which is to say, those products that are no longer in production or which the manufacturer is no longer producing, but may nevertheless one day end up returned to the recycling stream for our program to manage.

We also felt that it was important that the fees we collect in the program support the objective of long-term financial stability. We need to ensure that once the program is up and running, any significant shifts in the sale or collection of regulated products does not compromise our solvency.

Accordingly, the fee structure supports the creation of a reserve and contingency fund that we can use to mitigate unpredictable market variances. It is important to note that any surplus we achieve in the program will not be sustained for any significant length of time.

Other elements that were considered when we set program fees include:

  • Best available data for historical sales of regulated products
  • Forecasts of future sales of regulated products
  • The average weight of program products (i.e. how much recyclable material do they contain and what does it take to transport and process that material?)
  • Expected collection volumes (drawing on insights from other stewardship programs as well as baseline research into the types of regulated products that consumers in the region had in their possession)

Many Products under One Program = Greater Efficiencies

Due to the volume of products managed by our program, we are able to achieve economies of scale on all aspects of the recycling process that would be out of the reach of any one member operating independently.

Keeping our member’s fees as low as possible effectively means that consumers pay less at the point of sale.

There is no cost to consumers to use the ElectroRecycle program.

Special Fee & Remittance Scenarios

On the need for formal policies…

We see the effective recycling of small appliances and power tools as a collaborative effort between CESA and you, the Member. As a Member, you can take comfort in knowing that we will work hard to realize all of the deliverables to which we have committed as a stewardship organization, from the collection, transportation and processing of program materials all the way through to the timely resolution of your queries.

Reciprocally, we expect that the deliverables that are in your court, such as the consistent reporting and remittance of program fees, will be reliably completed. Program materials require our careful attention every single day and so we count on fee revenues to keep the work going seamlessly.

We recognize that from time to time you may encounter a situation that falls outside of the normal day-to-day routine of program membership, such as dealing with a returned item upon which fees have been paid, deciphering an item which does not intuitively identify its program category, or reconciling outstanding fees owed to the program.

The following policies are meant to clarify what to do in these unusual circumstances and to set realistic expectations around resolutions.