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Air Conditioning Costs and the banning of R22

Added on Jan 09, 2014

From 2015 is will be illegal to use Hydrochloroflurocarbons (HCFCs), including refrigerant gas R22 in refrigeration, heat pump and air conditioning (AC) systems.

This is particularly relevant to all landlords and tenants, as R22 is commonly used in AC systems prior to 2004, so its ban will have major cost implications for landlords and tenants of commercial premises with older building systems in place.

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mean?

All existing AC units using R22 will have to be looked at and two options are available:

  • Old AC systems can be replaced by new AC equipment
  • An alternative, modern refrigerant will need to be used to top up the system. (This will usually involve having to replace parts of the current system and dependant on compatibility)

 

Considerations

Consider the following when deciding on which option to take. Age and efficiency of the current system, cost and compatibility with alternative refrigerants.


Who is responsible for compliance?

Both landlords and tenants should look carefully at their contracts or lease to determine where this expense will lie. Pay particular note to repair and statutory compliant clauses.

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In multi let buildings, service charge provisions will determine where responsibility for the costs fall.

New Tenants should be aware of this change coming in and bring it up in discussions during lease negotiations. Current tenants that may be responsible for repair should discuss this with professional advisors during dilapidations talks at the expiry of a lease or factor it into decisions to exercise a lease break option.

Advice

If you would like more information or advice on the steps you should take as either a landlord or a tenant, please don’t hesitate to get in touch at enquiries@deriaz.co.uk

 

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