What Happens If a Business Fails a Commercial Gas Safety Inspection?

The annual gas safety inspection is a mandatory requirement for both domestic and commercial properties under the Gas Safety Regulations. It is a prerequisite for getting a gas safety certificate, which is also a legal requirement for Commercial properties. 

Under the current gas safety regulations, the safety of the employees and customers against potential risks associated with gas is the responsibility of the landlord of rented commercial property or the business owner. They are required to keep the premises gas safe in accordance with safety protocols. Businesses must follow the gas safety standards outlined in the Gas Safety (Installation and Use) Regulations 1998. The major risk associated with gas is the possibility of leaks. It can occur either in a gas pipe network or in a faulty gas appliance. 

Leaked gas may cause an explosion or fire. Another gas issue is the possibility of emission of harmful gases, such as carbon monoxide. It happens due to the incomplete burning of gas. If left unattended, it results in serious medical situations, like carbon monoxide poisoning. The purpose of gas safety inspections in commercial properties is to ensure that the employees and the clients are protected against these gas hazards. That's why it is crucial for businesses to pass this annual safety inspection successfully. A failed commercial gas safety inspection has serious consequences. 

Reasons for a Failed Commercial Gas Safety Inspection

There may be several reasons behind a failed commercial gas safety inspection. However, the main reason is mostly non-compliance with the Gas Safety (Installation and Use) Regulations 1998. 

Here is a summary of different factors that result in failed commercial gas safety inspections: 

• Faulty Gas Appliances

If one or more gas appliances are found faulty, the gas safe registered engineer may label them "Immediately Dangerous" ID or "At Risk" AR. Such appliances are not safe for use and are the major reason behind the failure of gas safety inspections. 

The fault may be of different types, such as:

• Gas leaks: They can either be detected manually through the unique smell of natural gas or by way of gas leak detectors. Gas leaks can occur at any time due to internal faults in the gas appliance, wear and tear, or improper installation. A loose connection may also result in leaks. On detection of a gas leak, the engineer will shut off the appliance and also disconnect it from the main gas supply. 
• Incorrect Gas Pressure: Gas appliances need a pre-determined gas pressure for optimal performance. Due to a fault in the gas regulator or an inconsistent gas supply, sometimes, the appliance may not receive the correct gas pressure. As a result, the gas appliances may start malfunctioning. Very high or very low gas pressure can both cause a fault in the appliances. 
• Incorrect Flame: Normally, the gas flame should be blue. In the case of a faulty burner, the flame might change color to either yellow or orange. Any such deviation in the flame color points to a fault in the gas appliances.
• Emission of Carbon Monoxide: It happens due to. Incomplete gas combustion. It is also a sign of fault in the gas appliances. 

• Other Reasons for a Failed Gas Safety Inspection

• Improper ventilation due to blocked vents. 
• Faulty flues and chimneys.
• Incorrect installation of gas appliances.
• Inconsistent servicing of gas appliances.
• Poor maintenance of the gas system.
• Unauthorized gas workers conducted gas work.
• Non-availability or non-existence of a currently valid Gas Safe Certificate.
• Non-availability of documentary proof of a previously conducted gas safety inspection.
• Damaged or rusty gas pipes.
• Gas pipes are not properly installed or installed in an unsafe position.
• The carbon monoxide detector is not installed or is not working.
• Domestic gas appliances are being used for commercial purposes. 
• Employees are not properly trained to handle a gas emergency situation.
• No gas safety emergency plan is in place. 

When a Business Fails a Commercial Gas Safety Inspection

In the event of a failed commercial gas safety inspection, quick responsive action is required by the Gas Safe registered engineer and the business owners/property managers. Additionally, a legal process might have to be initiated if the need arises:

• Urgent Action Required

In case of a failed commercial gas safety inspection, the engineer is supposed to perform the following actions, without any delay:

1. Disconnect the gas supply to the gas appliances declared unsafe.
2. Label such appliances “Immediately Dangerous” (ID) or “At Risk” (AR), as the case may be. 
3. Issue a warning notice not to use these gas appliances until the fault is fixed. 
4. In the case of serious Carbon Monoxide emissions or explosions, the matter may also be escalated to the Health and Safety Executive (HSE) or local authorities for issuance of a Prohibition Notice, as per the law.
5. If the Prohibition Notice is issued, it implies that the business cannot use the gas system until the issues are fixed.

• Initiation of Legal Process, if Required

In the event of a breach of the provisions of the Gas Safety (Installation and Use) Regulations 1998, such as failure by the business to maintain and keep the gas system safe, a legal process may be initiated. The legal process may end up in the following eventualities:

1. In the event of serious violations of the Gas Safety Regulations 1998, the business owners may have to pay fines. The amount of fines will be based on the nature and severity of the violations.
2. If there are injuries or deaths occur due to the negligence of the company, the directors may have to face criminal charges in the Court of Law. This may lead to serious consequences for the business owners.
3. Under the Civil Liability proceedings, the victims of gas mishaps have the right to sue the management/owners for compensation/damages. This may result in significant expenses being paid by the business in the form of damages, as determined by the Court. The extent of expenses in this case may vary from case to case. However, it depends on whether the victims of gas mishaps pursue a claim for damages or not.

• Arrange Mandatory Repairs and Re-Inspection

The business owner or the landlord (in the case of rented commercial property) is required to arrange immediate repair work, as pointed out in the inspection report. Any such repair work has to be done by a registered Gas Safe engineer. The owners will hire the services of a registered Gas Safe engineer as early as possible to conduct the necessary repair work strictly under the gas safety protocols. 

Once the necessary repair work is completed, the owners are required to arrange a re-inspection of the gas system. Preferably, the same engineer should be entrusted with the job who previously conducted the commercial gas safety inspection. 

If the re-inspection is successfully completed, the gas supply will be restored and the business will be allowed to start working as usual. 

• Financial and Reputational Losses

In the event of a failed commercial gas safety inspection, the business may also face both financial and reputational losses:

Financial Losses

1. Businesses usually are insured. The insurance companies require a valid Commercial Gas Safety Certificate (CP42). If the gas safety inspection fails, there will be no valid Commercial Gas Safety Certificate; consequently, the insurance may be voided. 
2. In this scenario, the business will lose the insurance coverage.
3. They will have to pay a higher premium for any future insurance coverage till such time they get a valid Commercial Gas Safety Certificate (CP42).

Reputational Losses

1. The market reputation of the business will be severely damaged.
2. They may even lose a major portion of their business in this scenario.
3. Negative publicity about the business may also damage its reputation in such an event.
4. Above all, they might lose customer confidence and trust. 
5. In extreme cases of failure of gas safety inspections, some businesses had to wind up. 

Precautionary Measures to Avoid a Failure

• Keep your business Gas Safe, all the time.
• Always hire the services of a Gas Safe registered engineer to work on gas systems in your business premises.
• Ensure that the business possesses a valid Commercial Gas Safety Certificate (CP42).
• Keep the gas appliances and allied pipework, including boilers and flues, well-maintained and regularly serviced. Ensure that a registered Gas engineer does all such maintenance and servicing.
• Keep the previous gas safe inspection records in safe custody for at least two years. 
• Train the employees to handle gas emergency situations, especially the detection of gas leaks and carbon monoxide poisoning.
• If a new gas appliance is added to the system, get it inspected for gas safety.

Conclusion

Gas Safety of the commercial units is the responsibility of the business owner or the landlord if the property is rented. Accordingly, they are required to keep the premises gas safe. This can be done by ensuring that all the gas appliances and allied fittings and pipework are inspected for gas safety, on an annual basis, by a Gas Safe registered engineer. 

A successful inspection results in the issuance of a valid Commercial Gas Safety Certificate (CP42), whereas a failed inspection leads to serious consequences for the business. This may also include legal proceedings in case of severe violations of gas safety regulations. It may also lead to fines and imprisonment. 

The consequences of a failed commercial gas safety inspection may also include significant financial losses, such as reputational damage and loss of clientele. Additionally, the business has to incur huge expenses for the repair and/or replacement of faulty gas appliances. To protect the business interests and to comply with the gas safety regulations, it is highly recommended that the safety standards be strictly followed.