Water Damage Restoration Contractors: All you need to know about F-Gas 2020

Regulation changes can feel like an expensive yet necessary burden when they mean spending significant time and resources to make your business compliant. But what if the future of the planet quite literally depends on contractors embracing these rules? Then it’s probably time for businesses to throw in the towel and start embracing the environmentally-friendly revolution...

While water damage restoration contractors won’t single-handedly save the planet, as of January 2020 they have a huge part to play in making sure equipment follows the updated F-Gas regulations. The original regulations have been around for several years to ensure that the amount of fluorinated gases emitted into the atmosphere is restricted as much as possible.

Though not considered damaging to the ozone layer, as greenhouse gases they have a Global Warming Potential (GWP) that’s 23,000 times higher than CO2. GWP is how the impact of greenhouse gases on the environment is measured and the risk this poses, so those are some pretty scary numbers. 

The EU and The Kyoto Protocol are leading the 2020 initiative with immediate action by reducing the GWP factor any refrigerant device is allowed to have when it is placed on the market, outlining the specific requirements for portable dehumidifiers operating with F-Gases and the gradual introduction of more eco-friendly alternatives. This means you’re no longer allowed to buy portable refrigerant dehumidifiers that have a GWP of over 150.

6 ways this affects you right now

1. New equipment will have limited availability for at least the early part of the year

You will no longer be able to purchase the same equipment as you have done in previous years. Unfortunately, many manufacturers haven’t sufficiently considered this legislation, leaving many of their product ranges virtually obsolete from a legal perspective.

With the first quarter of the year expected to be the busiest, contractors needing to purchase additional products may find they struggle to fulfil demand. I’m grateful our team at Dantherm were one step ahead and have spent the last 2 years entirely redeveloping our range in preparation for these changes, so we can continue to meet our clients’ needs. 

Realistically, those who have missed the boat won’t be able to put anything new out until the end of Q1 or later, meaning contractors may have to consider other brands in order to keep things moving. It goes without saying that you should only explore a manufacturer you trust, and that has invested time and money into getting things right from the outset. Any manufacturer worth their salt should have been on top of these changes and should already be contacting you about your options if you work together already.

2. Things are going to take longer

While you are in no way legally obligated to change your equipment purchased in 2019 or earlier, as the phase-out continues, you will be left with little choice but to purchase the compliant products in the future – with maintenance for non-compliant F-Gases becoming defunct over the next few years.

Before people stop providing maintenance completely, their prices could escalate to up to 10 times what you currently pay. You may wish to consider investing in the equipment earlier than required in order to combat this additional premium. 

Plus, because of the lower environmental impact of the new dehumidifiers across the board, they will potentially take longer to complete a drying cycle due to reduced water removal rates, which means you will likely need more dehumidifiers to complete each job, as well as any additionals needed to meet insurers’ deadlines. 

3. You need to open communication with the insurance companies you work for

It’s fair to say that some relationships between contractors and insurance firms have been a little strained over the years. They have an obligation to get things delivered cost-effectively, but you also have an obligation to deliver the job in a way that’s not only best practice, but also profitable for your business.

By educating insurers about the way these regulations affect your business, you can work together to reach a financial solution that works for both parties. They will need to understand and respect your need to be compliant, and they should be pleased to be working with a contractor that invests in technology that reduces the environmental impact both companies make. 

4. If you are sold the same equipment that was available last year – it’s potentially illegal!

Some manufacturers may be tempted to buck the rules to compensate for their lack of innovation and investment to stay compliant. If you are offered equipment that doesn’t meet the new legislation, the manufacturer is placing this on the market illegally and there could be implications. If you are unsure how to spot what’s compliant and what isn’t – and it can be tricky – drop me a line and I can give you some guidance. 

5. When Brexit goes ahead, these rules will still apply

Just because the EU is pioneering this legislation, it doesn’t mean the UK will lose our commitment to helping save the environment. The government has outlined that, post-Brexit, UK manufacturers will still need to comply with EU regulations on F-Gases and products containing them that are put on the market. 

Outside of politics, it’s not just a legislative change we are driving - it’s an industry-wide acknowledgement of our responsibilities and encouraging widespread change. This is an environmental initiative that can’t be ignored. If your company actively promotes its focus on ‘green’ initiatives then you need to be seen to be practicing what you preach. 

6. Your existing equipment can’t simply be ‘upgraded’

Because of the complexity in the way in which portable refrigerant dehumidifiers work, it’s not possible to just switch out the gas that’s being used or make a few tweaks here and there to the way it’s built. In order to be compliant, the entire hardware needs recalibrating and the product itself stripped back and reinvented. This is an entire ‘step change’ for the industry and the way we work.

What’s next?

Though the changes won’t be heavily enforced overnight, the impending transition period will present a number of challenges and complications for contractors if they are not prepared. My advice to anyone reading this is to start taking action on these changes and to not get left behind. I understand how tight profit margins are for water damage restoration contractors. But, without investing in the right equipment soon, you could find yourself with greater consequences to deal with later down the line. 

When you navigate the transition period, it’s important to consider all of the above points, but I’d like to place particular emphasis on point 3. Procuring a compliant armoury of water damage restoration equipment and keeping your business going will be incredibly difficult if you don’t get the support you need from insurance companies.

They have a big part to play in giving you the financial breathing space you need to do your job correctly, and understand why pricing structures will potentially need to change in order to accommodate this. It’s not about holding anyone to ransom, but building a stronger relationship where both parties can trust jobs are being completed transparently, cost-effectively and in an eco-friendly way. 

Hopefully this article gives you an idea of the next steps you should be taking as a contractor, and provides greater insight into these all-important F-Gas updates. If you still have questions or would like to talk to me about your business requirements, my inbox is always open. Drop me a line and we can have a chat.