Is there a penalty for non compliance?

Under article 15, The EU Directive states that Member States shall determine penalties applicable to breaches of the national provisions adopted pursuant to the WEEE Directive.

A producer who -

1. fails to comply with any of the provisions of sub-article (1),
2. is deemed not to be registered in accordance with article 12(2) or, as appropriate,
3. is refused an application for renewal of registration in accordance with the provisions of article 12(4),

shall be prohibited from placing/distributing electrical and electronic equipment on the market.

Also failure to comply with the Regulations will result in prosecution and you run the risk of severe penalties with a maximum fine of € 15m and/or 10 years imprisonment.