When installers are faced with making a decision
between oil and LPG for rural non-mains-gas installations,
tank insurance should be an important consideration.
Rachel Hodge, market development manager of Calor, the
UK’s
leading LPG supplier, explains.
Where the environment is concerned, LPG presents a strong
case against oil. There are over 5,000 oil spillage incidents
each year, which are not just confined to commercial
premises. According to Property Matters, 10 per cent
of all sites branded contaminated by local authorities
are due to a domestic oil spillage.
The ‘polluter pays’ concept is an established
standard utilised in environmental regulation, and where
oil leaks are concerned this can become a serious and
expensive issue for domestic and commercial property
owners and indeed installers.
When an oil spillage does occur, if the council declares
the ground contaminated under the Environmental Protection
Act, the person responsible for the pollution could pay
up to £20,000 in fines, along with any associated
clear up costs. Installers can also become liable if
they have not followed legislation regarding bunding,
risk assessments or registration.
Where commercial premises are concerned, companies and
individual directors can face significant fines and clean
up costs or even a custodial sentence. Businesses are
liable for oil leaks however they are caused – whether
due to poor design, installation, maintenance or vandalism.
Some
the UK’s largest insurance companies do
not provide cover for damage caused by a domestic oil
storage tank spillage – a fact further substantiated
by some independent insurance policy research Calor
recently commissioned. Out of 89 companies contacted,
32 would not provide cover for a domestic oil tank
leak. Many others were either vague in their response,
couldn’t provide genuine advice or referred us
to an insurance broker.
A recent incident in the village of Otterton, Devon,
has raised serious concerns about oil storage tanks.
Here the Environment Agency discovered that 94 out of
116 oil tanks were of high to medium risk, including
the Village Hall’s.
With Otterton’s Otter Valley being responsible
for providing drinking water to over 200,000 East Devon
residents, the Environment Agency has now requested that
the tanks are replaced or improved – at the property
owners’ expense. The cost is thought to be at least £700
for each oil tank.
Where LPG storage tanks are concerned, there is no risk
of a pollution leak and the tank remains the property
and responsibility of Calor. Each Calor tank is checked
and maintained by qualified engineers every time LPG
is delivered.
Oil spillages are a serious environmental concern, and
oil tank insurance is clearly a grey area. It only takes
one oil installation to go wrong for environmental damage
to occur, leaving the ground and possibly water supplies
polluted, and the customer, and perhaps the installer,
with a bill for thousands of pounds.
Issued on behalf
of Calor by The Bright Consultancy,
1 Henley Court, High Street, Henley-in-Arden, West
Midlands B95 5BA. For further information please
contact Ruth Barrows/ Ian Bates at Bright on Tel:
+44 (0) 1564 795535 Fax: +44 (0) 1564 795560 or Email: ruth@bright-consultancy.co.uk.
 Click
here to download this press release in Word format
Ref: CALG0033AV
Released: November 2004
|
Calor Home Page
Welcome to Calor
