R22 Refrigerant Gas – Start planning your phase out now!

7 Dec 2011

R22, the HCFC coolant gas used in air conditioners and refrigeration equipment, will be banned in its entirety by 2015. The new legislation, in the form of the ODS European Regulation 2009 and the Environmental Protection (Control of Ozone Depleting Substances) Regulation 2011, brings about the prospect of high compliance costs for both Landlords and Tenants of air-conditioned premises and for those using refrigeration equipment. Systems may need to be converted where possible or, if conversion is not possible, replaced in their entirety. The potential expenditure, running in the tens of thousands of pounds, will no doubt leave Landlords’ and Tenants’ temperatures rising.

What should Landlords and Tenants do?

When taking on a new lease or renewing an existing one, Tenants should check that the air-conditioning system or equipment does not use an HCFC gas
Both Landlords and Tenants should examine Service Charge, Rent Review and Covenants to Repair in existing lease provisions to determine who has the responsibility for covering the costs of compliance if R22 is present
Parties should consult with each other in advance about planned compliance action to ensure that they have sufficient time to consider the most appropriate options, budget for any investments required and minimise cost implications
Options to comply with the new regulations include (1) Replacing the equipment completely; (2) Converting existing equipment, if possible, to use non-HCFC gas; or (3) Continuing to use “recycled” R22 gas until 2015, despite rising costs and dwindling supply

For further information or for advice on the HCFC Regulations please contact Janet Ayres or Susan Haggard of the Property Department.