Energy Performance Certificates
The European Union has introduced measures to try and tackle the impact
of both commercial and residential buildings on carbon dioxide emissions.
In the UK, the measures introduced by the Energy Performance of Buildings
Directive (2002/91/EC) are being phased in gradually, depending on the
size of the commercial property concerned. Since 1 October 2008, Energy
Performance Certificates (EPCs) are required on the construction, sale
or rental of all commercial property in the UK.
What is an EPC?
An EPC contains information about the energy efficiency of a building
as an asset. It needs to be available to prospective buyers and tenants
and is likely to become an important selling point for commercial
properties.
An EPC for a non-dwelling must contain;
- an asset rating showing how energy efficient the building is.
The rating ranges from A-G, with A being the most efficient.
The energy performance of the building is shown as a Carbon
Dioxide based index;
- reference information showing the unique certificate number,
the date of issue, the expiry date and details of the Energy
Assessor (EA) who completed the report. EPCs are valid for 10
years unless major works are undertaken on the property;
- information on how to confirm that the certificate is genuine
and how to complain; and
- a recommendations report giving cost effective suggestions
as to how to improve the energy rating. The recommendations
will include indicative paybacks and will only be included if they
are appropriate for the building being assessed.
There are 4 categories of recommendation:-
- Short term payback –within 3 years
- Medium term payback –within 3-7 years
- Long term payback - more than 7 years
- Other recommendations based on energy assessors knowledge
There is no obligation to act on the recommendations but as the system
becomes more established, buildings with low EPC ratings will become
harder to market.
Who is responsible for obtaining EPCs and when?
The person responsible for obtaining an EPC and the time at which the
obligation will be triggered, depends on the type of property and the nature
of the dealing with the property.
Contractors – For new build properties, the contractor must issue an EPC to
the new owner of the building within 5 days of completion of the works.
In most cases, the EPC will have been prepared at an earlier stage
of construction due to building regulation requirements.
Sellers – On the sale of a commercial property, the seller must make the EPC
available to any prospective purchaser at the earliest opportunity. This is likely to coincide with the circulation of sales particulars, but in any
event, the EPC must be provided prior to exchange of contracts.
Landlords – On the grant of a lease, an EPC must be made available to any
prospective tenants at the earliest opportunity. On a sub-letting it is the
obligation of the intermediate landlord to produce the EPC. Lease renewals,
extensions and surrenders are excluded from the requirements.
Modifications – Where a building is modified to have more or less parts than
it originally had and the modifications include the provision or extension
of the fixed services (heating, light, air conditioning), a new EPC will be
required. It is the responsibility of the person carrying out the modifications
to obtain the EPC and to give it to the owner of the building.
In all cases the EPC must be provided free of charge. In the landlord and
tenant situation, it may be possible for the landlord to recoup the cost
of the EPC through the Service Charge provisions of the lease, but this will
depend on the specific wording of the clause and the time at which the
certificate is obtained. New leases should be carefully drafted to take these
new obligations into account.
Are there any exceptions?
There are a small number of commercial buildings that do not require EPCs;
- places of worship;
- temporary buildings with a planned time use of less then 2 years;
- industrial sites, workshops and non-residential agricultural
buildings with low energy demand;
- stand-alone buildings with a gross internal area of less than
50 sq m; and
- buildings that are to be demolished.
What information will the Energy Assessor require?
In order to produce an EPC, an EA will require the following information:
- Fully up to date plans of the building including details
of the individual spaces or zones in use within the building
and their dimensions.
- The activities conducted within the zones. For example, retail
space, office space, kitchen or storage.
- The heating and ventilation services for each zone, including
details of the type of system, metering, controls and fuel used.
- The lighting and their controls used in each zone.
- Details of the materials used in the construction of the building
and their thermal efficiency. For example, the quality
of the glazing and insulation materials used.
Some of this information can be time consuming and costly to obtain
therefore it is advisable to start gathering it in advance of the deadline.
Once the EPC is complete, the assessor will register it with the Landmark
Information Group. Registered documents cannot be altered and will be
stored on the register for at least 20 years.
Air conditioning
Since 1 January 2008, all buildings with air conditioning (with a maximum
calorific output of more than 12kW) must ensure that the system is
inspected at least every five years by an EA.
The EA must provide a written report of the inspection as soon as
practicable after it has been completed. The report must include:
- An assessment of the efficiency of the air conditioning system.
- An assessment of the size of the system compared to the cooling
requirements of the building.
- Appropriate advice on possible improvements to the system
(including replacement of the system and alternative solutions).
If the system was put into service after 1 January 2008, the first inspection
must take place within five years of the system being put into service. If
the system was in service before 1 January 2008, the date of the first
inspection depends on the output of the system:
- systems with an output of more than 250 kW must have been inspected
before 4 January 2009; and
- systems with an output of more than 12 kW must be inspected
before 4 January 2011.
How will the requirements be enforced?
Local Authorities, usually through their Trading Standards Officers, will be
responsible for enforcing the EPC requirements and issuing penalty fines
to anyone who does not comply. Penalties will vary but the maximum
is £5,000.00.
Stages of the Rollout of EPCs
6 April 2008 EPCs required on construction of all new dwellings and
EPCs required on commercial buildings with a floor area
over 10,000m2 when built sold or rented
1 July 2008 EPCs required on commercial buildings with a floor area over 2,500m2 when built sold or rented
1 Oct 2008 EPCs required for the sale or rent of all remaining dwellings
and EPCs required on the construction sale or rent of all
remaining buildings
If you would like further information on the content of this newsletter please
contact Michael Collins on 0207 404 0606 or mcollins@gdlaw.co.uk.
September 2008
This is a guide for general information and interest and should not be relied upon as providing specific legal advice.
download  |
