Many small businesses have heard about Ontario's new environmental levy, which is called the Ontario Environmental Stewardship program, or OES. Some of our clients have been mandated to join the Stewardship program, and have had to come up with ways to track and report on their consumption and/or production of various kinds of waste, including electronic. Many other clients are just discovering it when they get charged a levy when purchasing new electronic gear.
In its shortest version, OES is a means to charge producers of electronic waste a levy, essentially to pay for the eventual disposal of their goods. The rates charged depend on the type of item, the packaging, and a number of other factors.
Note that this is NOT the same "Eco Fee" that got so many consumers up in arms in July 2010; that program relates to charges to consumers for other non-electronic hazardous wastes. Both programs are administered by Stewardship Ontario, but they are designed to divert entirely different types of materials from landfill.
The OES program is being phased in over several years. Phase 1 went into effect in April, 2009, and involved levies for desktop and portable computers, computer peripherals, monitors, televisions, and printing devices.
Phase 2 commenced April 1, 2010, and further adds the following devices to the list of those upon which the levy applies: computer peripherals will include modems; printing devices will include copiers, scanners, typewriters; telephones (physical and accessories); cellular phones; PDAs and pagers; various audio and video / camera equipment; and personal handheld computers.
The simple answer is that we get charged this fee from our suppliers, so we have to pass it along.
We will not be marking up the fees we are charged, but since they do add up and the product margins in our business are very, very tight, we can't just absorb them. Our choice is to clearly identify these charges to our clients, rather than bury them. We believe our clients deserve to be as informed as possible on what they are paying.
If you're buying PCs, LCD screens or similar, the amount of the fee varies according to a rate schedule that's somewhat mysterious, but typically won't add more than about $15-20 per system you purchase, including a PC, screen, keyboard, mouse, UPS and basic accessories.
For more information on the OES program, the items included / excluded, and some suggestions on what we can all do to avoid our electronics ending up in a landfill, you can visit the OES site. There are links there to all kinds of information about OES, environmental concerns and waste diversion stewardship in general.
We encourage our clients to think about the impact their electronics purchases have on the environment, and to dispose of their old electronics in an environmentally responsible manner.
The following are some FAQs (Frequently Asked Questions) that have been asked of us by clients. Our theory is that if one client asks, there are probably others who are curious. If you have a question that isn't answered below or on the OES web site (links below), please let us know and we'll update this list as appropriate.
The reality is that this levy has become a material cost component for manufacturers, and as with any cost, it ultimately gets paid (directly or indirectly) by the final purchaser of the product.
We prefer to be up front and show you the charges you're paying. And since our primary suppliers have chosen to pass along the charges to us, and since margins in technology products are already razor-thin, we have no choice but to pass the charge along to our clients. As noted above, we feel it's better to clearly identify these charges so our clients know what they are paying, and we note again that we will not be marking this up