Regulation of Air Conditioning Systems: Considerations to Ensure Compliance

Air conditioning is the UK government's latest target in its war on climate change. That means many more rules for owners and occupiers of property to comply with and the risk of fines for noncompliance.

There are two sets of regulations that impose different obligations: the Fluorinated Greenhouse Gases Regulations 2009, enacting the European Union's Regulation (EC) No 842/2006 (the "F-gas Regulation"), and the Energy Performance of Buildings (Certificates and Inspections) (England and Wales) Regulations 2007 (the "2007 Regulations"). This article will explain the practical requirements of these regulations for businesses operating air conditioning on their premises.

The F-gas Regulation

The F-gas Regulation aims to reduce the escape of greenhouse gases. It imposes obligations on "operators" of air conditioning systems, heat pumps and refrigerators. "Operators" are defined as the people or organisations exercising actual power over the technical functioning of such equipment. In practice, this is someone with:

• Free access to an air conditioning system
• Control over its day-to-day running
• The power to decide on technical modifications and have checks and repairs carried out on it

Unfortunately, this means that some businesses will be caught by the definition irrespective of whether they own, rent or lease business premises equipped with air conditioning systems. For example, a landlord, if he fulfills the above criteria, may still retain his status as an "operator" within premises that he has rented out.

The F-gas Regulation requires "operators" of systems containing more than 3 kilograms of fluorinated greenhouse gases (6 kilograms if the equipment is hermetically sealed) to:

• Prevent leakage and, as soon as possible, repair any detected leakage
• Ensure that the systems are checked in varying degrees of regularity, depending on the amount of refrigerant in the system
• Ensure that any checks are carried out by certified personnel—i.e., someone who has passed their City and Guilds qualification
• Label new systems stating the quantity and type of fluorinated greenhouse gases used
• Maintain records in relation to the servicing of these systems

Councils are the regulators for all commercial and retail businesses. They can issue penalties to anyone that does not comply with the F-gas Regulation. These penalties range from offering targeted advice on compliance to serving enforcement notices. In some cases, the council can issue £100 fixed penalties.

The 2007 Regulations

The 2007 Regulations impose additional obligations to those mentioned above.

Although the 2007 Regulations earned much publicity by introducing energy performance certificates, the obligations they place on running air conditioning have gone largely unnoticed. However, these obligations should not be ignored as noncompliance carries penalties.

Part 4 of the 2007 Regulations introduces inspection and reporting obligations on the person who controls the operation of the air conditioning system (referred to as the "Relevant Person"). The regulations do not provide a specific definition of Relevant Person. This means that, in many cases, business owners will have to bear this responsibility. Furthermore, as the regulations apply to air conditioning systems with an effective rated output of more than 12 kilowatts, all but the smallest systems are covered.

The 2007 Regulations require inspections by energy assessors. These are members of an accreditation scheme approved by the Secretary of State, and there are a number of different schemes. The inspections must take place at least every five years. But, where an air conditioning system was first used before 1 January 2009, it should have its first inspection by:

(a) 4 January 2009 if it has an effective rated output of more than 250 kilowatts, or

(b) 4 January 2011 if it has an effective rated output of more than 12 kilowatts

Once an inspection has taken place, the energy assessor must provide a written report to the Relevant Person. This report must be kept and passed on in the event of the Relevant Person changing (the most likely cause of this would be the sale or letting of the property). If, however, this does not occur and the Relevant Person changes on or after 4 January 2011, the new Relevant Person must ensure that the air conditioning system is inspected within three months of them acquiring the position. Failure to have the report available for inspection could slow down any sale, letting or refinancing of a property.

As with the F-gas Regulation, noncompliance with the 2007 Regulations carries a penalty. The main penalty is a fine.

Roundup

It is important for business owners operating air conditioning to be aware of their obligations under both the F-gas Regulation and the 2007 Regulations. Ensure reports are in hand for the day the property is sold, leased or mortgaged and recognize that the persons engaged to issue the inspection reports require different qualifications under each of the regulations.