Regulations regarding Energy Performance Certificates (EPCs) have been in place since 2007. However, on 9 January this year the Energy Performance of Buildings Regulations Act 2012 (the ‘Regulations’) came into force, consolidating previous legislation and giving guidance on how commercial properties’ energy use and carbon dioxide emissions could be reduced.

An EPC provides information on the energy efficiency of a building, looking specifically at heating, lighting, ventilation, air conditioning and construction type. EPC ratings are measured from A (most efficient) to G (least efficient) and these certificates are required for almost all buildings when they are constructed, sold or rented under Article 7 of The Energy Performance of Buildings (Certificates and Inspections) Regulations. These Regulations and Statutory Instruments have been passed to ensure that England and Wales conforms to the European Directive 2002/91/EC on the Energy Performance of Buildings (EPBD).

All commercial properties now require an EPC prior to, or within 7 days of being put on the market. A further 21 days are allowed for completion and acquisition of the report after which fines can be imposed of anything up to a maximum £5000.

It is therefore in the interest of the owner to arrange for an EPC, which is valid for 10 years, as soon as possible. Moreover, it is in their interest to improve the building in order to attain the highest possible EPC rating, as this could affect the marketing and saleability of a commercial property. Lease renewals, extensions and surrenders, however, do not require an EPC.

The onus is not merely on commercial private sector properties but also public sector buildings, which are required to have a Display Energy Certificate (DEC) if they have a total useful floor area over 1,000 sqm visited by the  public. DECs show the actual energy usage of a public sector building, the Operational Rating, and help the public see the energy efficiency of a building. A DEC, valid for only 1 year, is always accompanied by an Advisory Report, valid for 7 years, that lists cost-effective measures to improve the energy rating of the property. Again, breaches of these regulations can see fines of up to £5,000.

Commercial and domestic mixed-use buildings (with separate entrances) require an EPC from both a qualified Commercial and Domestic Energy Assessor.

In the case of new builds, responsibility to acquire the EPC lies with the person carrying out the construction. For buildings being modified, an EPC is only required if the fixed services (such as heating, air conditioning, ventilation) are being modified.

The regulations have undoubtedly become more stringent, however, more tightened measures are foreseen from April 2018, when the proposed legislative changes would make it unlawful to let residential or commercial properties with an EPC Rating of F or G. It is estimated that about 20% of non-domestic properties could be in this bracket, including prime properties and not just secondary and tertiary stock.

Call GBD on 01992 552 111 for more information on EPCs, energy assessment and for a consultation to discuss the cost-effective ways in which GBD could improve your energy efficiency ratings.

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