WEEE and lamp recycler Electrical Waste Recycling Group (EWRG) and electrical wholesaler City Electrical Factors (CEF), both owned by the Mackie family, have brought High Court proceedings against compliance scheme Recolight and four major lamp manufacturers.
The dispute centres on Recolight's alleged refusal to accept or be responsible for any lamps collected by CEF and EWRG.
Philips Electronics UK, GE Lighting, Osram and Havells Sylvania together have an 80% share in the lamp market, and are also majority shareholders in Recolight. CEF and EWRG allege Recolight is controlled by these manufacturers, though it is said both companies acknowledge Recolight is an open scheme.
Since 2007, manufacturers have charged electrical wholesalers like CEF 15p per lamp to cover the cost of treating and recycling waste lamps. This surcharge goes to Recolight, who in turn is responsible for recycling these old lamps when they are returned, though CEF continues to pay the 15p per lamp surcharge to manufacturers.
CEF alleges Recolight has refused to accept bulbs collected from its customers since 2008, and CEF (under its obligation to take old lamps away once it has replaced them with new ones) has been forced to arrange and pay for the collection, treatment, recovery and disposal of these lamps.
EWRG was one of a number of recyclers contracted by Recolight to recycle lamps. It alleges Recolight has refused to accept responsibility for any lamps collected by and processed by EWRG under the firm's existing business arrangements with a number of commercial organisations, including CEF and other national electrical wholesalers. EWRG is therefore burdening the cost to recycle the light bulbs despite the fact that the manufacturers are charging substantial sums of money to meet these costs via Recolight.
CEF and EWRG are claiming at least £350,000, but it is thought the figure may run in to millions of pounds. The writ itself claims the levy generates £3.8m a year for Recolight.
A statement from Recolight said: "Recolight strongly denies the claims by Electrical Waste Recycling Group and City Electrical Factors, and has filed a robust defence in the High Court, fully setting out its position."
EWRG and CEF said in a statement: "It is alleged by us the actions of the manufacturers and Recolight are anti-competitive and a breach of both domestic and European law. Their actions, we allege, have caused financial damage to both claimant companies and in particular to EWRG which has been compelled to undergo a recent restructuring and redundancy programme to allow it to continue to meet its contractual obligations to numerous third parties, something which it is determined to do."
Reports suggest Recolight decided not to renew some contracts with EWRG because of health and safety, environmental and quality concerns at two of its plants. In February of this year, EWRG was fined £145,000 for exposing workers to toxic mercury fumes at its Huddersfield recycling plant, after pleading guilty to breaching Section 2(1) of the Health and Safety at Work Act 1974.
