The repair fund is a financial support scheme aimed at households, the purpose of which is to relieve the bill in the event of an EEE failure. This financial aid scheme introduced via the anti-waste and circular economy text (AGEC) came into effect on 15 December 2022 under the Macron government.
In a context of energy transition, where the causal link between sales, consumption and negative environmental externalities has been clearly established, extending the use of our everyday products, in particular through repair, is becoming an obvious ecological act.
Fonds Réparation and the AGEC Act
AGEC, a quick reminder of the genesis of this text to understand the origin of the reparation fund. In France, the Anti-Waste for a Circular Economy Act of 2020 is a legislative tool designed to encourage an economic paradigm shift from a linear economy (the disposable economy) to a circular economy. It has its roots in the time immemorial when the Grenelle Environment Forum was on the agenda.
AGEC’s ambition is to support the ecological transition and green growth, and to encourage changes in production and consumption models by taking concrete action in various sectors (eee, food, packaging, etc.). The aim is to reduce premature waste production, rationalise the use of natural resources and preserve our ecosystems.
Since it came into force, the AGEC text has been the source of a number of changes and new texts, such as :
- Display of a reparability index (rating or score out of 10) and a future durability index
- Extending the availability of spare parts
- Obligation to offer spare parts from the circular economy (medical devices, smartphones, monitors, washing machines, etc.)
- Setting up new waste recovery channels with the aim of collecting, reusing and recovering waste.
- Broadening the scope of hazardous and/or noxious substances
- Deployment of EPR systems in different sectors, with the implementation of a waste collection and recovery organization (e.g. construction).
- Enhanced consumer information through environmental labelling
Anti-Waste for a Circular Economy Act
France has therefore made reparability and, more generally, the extension of the lifespan of appliances one of its priorities for action.
Several incentive mechanisms have been set in motion, notably article 62 of the Agec text, which provides for the creation of a fund dedicated to financing repairs within the framework of extended producer responsibility (EPR):
Art. L. 541-10-4. – As part of their waste prevention objective mentioned in article L. 541-10, the eco-organisations and individual systems of the sectors concerned contribute to financing the costs of repairs carried out by a labelled repairer on products owned by consumers. To this end, each eco-organisation and each producer in an individual system creates a fund dedicated to financing repair.
Under the principle of responsibility, the text lays down obligations for producers (manufacturers, importers, own-brand distributors).
In addition to collecting, removing and treating millions of end-of-life appliances, manufacturers are now required to contribute to the fund. This fund will be managed by an approved (not-for-profit) eco-organisation to which each manufacturer belongs.
The purpose of this endowment is to finance the fund, thus promoting activities linked to the reparability of out-of-warranty appliances (smartphones, vacuum cleaners, etc.) and the development of the trades in this professional sector.
The tasks of the compensation fund under the AGEC Act
The aim of the fund is to reduce the cost to the user of restoring to working order a broken-down appliance not covered by the legal warranty of conformity.
The aim is to encourage French citizens to extend the use of their goods, rather than systematically renewing them and abandoning them for collection.
So this project is not about reusing, recycling or processing used goods, but rather about how long appliances are used and respecting their life cycle.
In addition to extending the life of products, and depending on its effectiveness, the fund has the power to act on the entire economic sector of repair. Encouraging repair means :
- contribute to the financial health of industry professionals
- develop or maintain local jobs with low relocation potential
- reduce volumes of premature waste
- encourage the purchase of repairable products.
- contribute to the financial health of households by reducing the cost of repairs and avoiding the need to purchase a new property.
These measures are part of a drive to reduce the volume of used but repairable equipment sent to landfill sites.
Reducing the production of WEEE means reducing the associated environmental damage, and in particular the ecological impact of extracting the raw materials needed to manufacture each item of electrical and electronic equipment.
The fund is also intended to finance part of the costs associated with restoring products to working order under certain EPR schemes.
For EPR of electrical and electronic appliances (and not only), approved eco-structures are responsible for financing this bonus, which is intended to cover part of the invoices issued by approved professionals.
By making repair more attractive, households are encouraged to choose more repairable products and, by rebound effect, manufacturers to make greater use of extended eco-design to make their appliances more repairable.
To sum up: By making repairability a purchase criterion, you’re doing the planet a favour by saving money for a splash in the calanques this summer. But don’t be fooled by the fact that no repairs can be made without spare parts, so remember to check that spare parts are available when you buy.
What is reparability?
Since there’s a lot of talk about repairability, we’d like to take this opportunity to take a look at the various aspects of this concept.
Keep in mind that product reparability is :
- Availability and price of spare parts
- Product disassembly including tools and fasteners
- Documentation associated with the item, including user and repair manuals, diagrams or exploded views…
Repair fund instructions
Who can benefit from the fund?
All consumers can benefit from reparability bonuses, but several conditions must be met.
Two conditions must be met in order to benefit from the reparability fund.
- The product to be repaired must be on the fund’s eligibility list
- The professional must meet a number of requirements, including the Quali Répar label.
There’s no need to do the maths – the fund is not income-tested. It is available to everyone, regardless of income, and is applied to the total bill, including labour and spare parts.
It is the professional repairers who advance the reparability premiums to their customers.
For their part, consumers pay the balance of the bill, after deducting the “reparability bonus”.
The introduction of these reparability bonuses should help to remove the budgetary constraints that are sometimes present in each and every one of us.
The repairer makes the calculation and the financial assistance is deducted from the invoice in a visible way. Professionals are obliged to present their invoices in a certain way, which has required them to adapt their IT systems.
When all the conditions have been met, and if functional restoration has been completed, the eco-organizations have 15 days in which to reimburse the companies for the repair lump sum advanced, after receipt of the supporting documents.
It should be noted that, depending on the brand and product concerned, the procedure differs according to the eco-organization concerned, with, for example, the requirement of a prior request for support making the process even more cumbersome!
It’s easy to see how cumbersome this approach can be for structures that are often organized as very small businesses.
Can companies benefit from the repair fund?
Just like households, businesses are confronted with breakdowns and regularly need to call in repairers (printer, computer, machine tool), but businesses cannot benefit from the fund.
How can a consumer benefit from the repair fund?
Here are the main steps to benefit from the fund as a consumer:
- The consumer checks that his or her electrical or electronic product falls within the scope of the fund.
- The consumer identifies a certified professional listed in the QualiRépar directories.
- The repairer deducts the subsidy paid by the fund from the invoice price.
How much is the compensation fund offering?
The level of reparability premiums is crucial to the Fund’s success.
For this to have a leverage effect, they need to be high enough to reduce the tariff pain threshold.
If this amount isn’t high enough, there’s a legitimate risk that industry professionals won’t see the point of offering this tool, given the constraints imposed on them.
The amount of the reparability bonus will depend on :
- Product type
- The breakdown
- Billing rate
Not all breakdowns are eligible for a reparability bonus; typically, a broken screen on your smartphone is not eligible! Similarly, if your smartphone’s battery is directly removable, replacing the battery will not entitle you to a bonus. Bonuses range from €10 to €45.
The table of reimbursements can be found on the Quali-répar website. For example, for a washing machine or dishwasher, the repair bonus is €25, for a laptop it’s €45 with a minimum invoice of €180. On the other hand, there is no minimum charge for most other products, such as hoovers.
Is the repair fund up and running?
The fund is already up and running. Based on a principle of progression, the repair fund will gradually come into play as time goes by and structures are certified.
What categories of equipment are covered by the repair fund?
Since 2022, the repair fund for electrical and electronic equipment has covered :
- Large appliances (washing, cooking, refrigeration)
- Small electrical appliances (cooking, maintenance, home, beauty, health)
- Electric mobility
- Musical instruments
- Tools and DIY
- Image and Sound
- Computing and Gaming
- Telephony (smartphone)
This is the first fund to be set up. It was particularly eagerly awaited, as the EEE sector generates millions of tonnes of waste every year. It doesn’t matter what model the appliance is, as long as it falls into the above categories, spare parts are available and it can be dismantled, then it should be eligible for the fund.
The list of sectors and products covered by the various reparation funds is decided by the government and public authorities via decree, and is also enshrined in the Environmental Code.
Here is a (non-exhaustive) list of products currently covered by extended responsibility schemes and/or repair funds:
- Electrical and electronic appliances
- Sporting and leisure goods (ASL sector)
- Thermal DIY and gardening products (ABJ Th sector)
- Textiles, footwear, clothing and household linen (TCL sector)
Professional repairers and the Repair Fund :
Who issues the QualiRépar label?
QualiRépar is issued by authorised inspection bodies. The approved CBs to date are : SGS, Bureau Veritas and Afnor. Repairers must follow a certification process, meet each of the label’s criteria and provide all the proof of compliance to the CB responsible for assessing the repairer. They do not receive a score, but a certificate of certification.
What are the criteria for the QualiRépar label?
Ecologic and Ecosystem have entrusted the creation of the QualiRépar labelling reference system to an inspection body, with the task of drawing up demanding specifications in consultation with all stakeholders. These specifications include all the criteria and a rating or assessment system. Our cooperative was not consulted, and certain professional sectors also regret the absence of consultation, which is mandatory for the creation of such a reference system. The essential criteria of QualiRépar are grouped under the following themes:
- Consumer information and awareness-raising
- The “repairer’s” expertise
- The “consumer” and “repairer” routes
- Controls and improvements
- Waste management
- Training/qualification of the “repairer
- Repairer” organizational arrangements
Repairers who have obtained the label will be listed in the Qualirépar directory and must comply with the conditions for displaying the label logo on their shops and/or websites. The Quali Répar label therefore represents a financial and time investment for professional repairers, since they have to prepare for the audit and pay the body responsible for assessment. The cost of the two audits is considerable, and the bill for receiving the label ranges from €1,500 to €3,000. These costs are collected by the CBs. In order to support repairers, but regardless of the size of the organisation applying for the label, the ecoorganisations cover the majority of the cost of the audits (70%).
How is the repair fund financed?
The repair fund will be fully financed by manufacturers via EPR channels.
The eco-organizations and individual systems of these EPR channels are responsible for providing this fund with sufficient resources to help achieve the objectives set out in AGEC.
The fund will therefore be financed by the eco-participation fee collected and paid by each manufacturer to compensate for the environmental impact of their activity.
The amount of this eco-participation varies according to the solutions adopted to reduce polluting emissions. In this respect, we hope that LONGTIME®-labeled manufacturers will benefit from downward eco-modulation, while less virtuous manufacturers will benefit from upward eco-modulation.
Private, non-profit French eco-organizations such as Ecosystem and Ecologic will be responsible for collecting these contributions, while also helping to pass on information to consumers.
In short, the fund will be financed by certain polluter-pays channels and by eco-taxes levied on the sale of new products. It will help reduce the production of (potentially hazardous) WEEE.