New AC regulations turn up heat for retailers
As the summer heats up, local air-conditioning businesses are braced for impact from new overseas laws changing the type of refrigerant gas used in the units.
The regulations call for R-32, a more environmentally friendly but mildly flammable refrigerant gas to replace non-flammable but more environmentally damaging R-410A. The US regulations include a year’s grace period, ending on January 1.
Alton Wilson, of AirServ, said the new flammability rating is a concern, particularly for those who must transport the gas.
“Bermuda is a hot environment,” he said. “If you were carrying the stuff around and there was a leak, it could cause an issue.”
Mr Wilson said there was also a matter of extra expense because the new units will require new equipment, systems and parts to repair and maintain them.
Paul Horner, of Dangerous Goods Training Ltd, is predicting minimal impact on supply chains by road and sea, but said the consequences for air transport are significant.
His British-based firm often runs dangerous goods safety courses in Bermuda.
Mr Horner said that if a refrigerating machine contains more than 100g of flammable, non-toxic, liquefied gas, it cannot be carried by air, ruling out the new R-32 machines for flight. They will typically carry between 700g and 900g of R-32.
“The solution is to ship the machines degassed and have a supplier in Bermuda refill the gas prior to use,” Mr Horner said. “Obviously, the gas will need to be shipped correctly as dangerous goods on the resupply ship, but the machines themselves, as long as they are empty, can be shipped by air as general cargo.”
That manufacturers are focused on engineering rather than restocking has worsened supply chain back-ups that have existed for several years because of shortages of certain materials such as aluminium.
“The US is running out of everything to do with R-410A units as they move over to the new refrigerant gas,” said Ashley Hines, office manager for Temperature Control.
She said there are limits to what can be purchased in the US. For example, her refrigerant gas supplier will allow Temperature Control to order only one bottle of R-410A gas per week.
Temperature Control will still need R-410A until it sells out of its stock of units. It will probably start bringing in the new R-32 air conditioners next year.
The summer air-conditioning sales season is just getting off the ground in Bermuda.
Ms Hines said summer is always busy, but the heat does not necessarily mean they will get more business.
“Things were actually a little better last year, at this time,” she said.
Keith Roberts, general manager and owner of Air Pro, said air-conditioner sales tend to run in cycles.
“Sometimes you have a lot of units coming to the end of their life and you have a lot of sales, and lots of new installs, and other years you do not,” he said.
However, he said when the heat hits, his employees work longer hours on installation and repair.
“We have a two-week wait for repairs,” he said. “Sometimes it can be as much as three weeks.”
AirServ’s Mr Wilson is seeing plenty of sales.
“We are just a small business,” he said. “We are selling around five or six air conditioners a week.”
He is seeing people who held out on getting an air conditioner for years finally give in and buy one this year.
The new refrigerant gas regulations do not impact car air conditioners or domestic refrigerators.