Willans fact sheet
Energy Performance Certificate (EPC)
Energy Performance Certificates (EPC)
One of the main ways in which the EU and the
government propose to tackle climate change and reduce
emissions is through greater energy efficiency, including
efficiency in buildings.
As a result, energy performance certificates must be made
available to prospective buyers or tenants whenever a building is
constructed, sold or rented.
In addition to the requirement for an EPC, air conditioning
systems in buildings will need to be inspected on a regular basis
and display energy certificates will need to be put on view in
large buildings occupied by public authorities and institutions
providing public services.
What is an EPC?
An EPC is a certificate containing information about the energy
efficiency of a building; basically, it tells you how energy efficient
a building is. Such things as heating, lighting, insulation, air
quality and carbon dioxide emissions are assessed and compared
to a benchmark. The building is then allocated a rating between
A (most efficient) and G (least efficient). The certificate and
graphics are very similar to the ratings system sometimes seen on
white goods such as freezers and washing machines.
An advisory report must also be supplied and kept with the EPC.
Both documents must be prepared by an accredited assessor.
They are valid for ten years and must be registered with the
local authority by the assessor who issued the documents. Once
registered, they cannot be altered and must be stored on the
register for 20 years.
Recommendation reports
When a seller or landlord is required to provide an EPC, the EPC
must be accompanied by a recommendation report. This contains
suggestions for the improvement of the energy performance of
the building and is issued by the assessor who issued the EPC.
Who needs it?
An EPC will be required for every property with a very few
exceptions such as places of worship, temporary buildings with a
planned time of use of less than two years, industrial sites, nonresidential agricultural buildings and workshops with low energy
demand and stand-alone buildings with a total useful floor area
of less than 50m2.
It will apply to the buildings that you would expect such as
traditional offices, industrial buildings and shops. It can also
catch properties that are less immediately obvious, such as farm
buildings where diversification might have led to a more energy
intensive use.
When do I need it?
The requirement for an EPC is triggered on the construction or
sale of a property or the grant of a lease or sub-lease. It can even
apply when a building is to be subsequently demolished, unless
the property is sold with vacant possession with an absolute and
proven intent to demolish and the seller can also show that it is
suitable for demolition and re-development.
Prior to 21 May 2010, the seller of a residential property was
also required to provide an EPC as part of the HIP. However,
now that the duty to provide a HIP has been suspended, new
regulations have been introduced imposing a duty on the seller
to commission an EPC before marketing the property for sale. An
EPC will be treated as commissioned when the seller instructs an
energy assessor to prepare an EPC and has either paid for it or
given an undertaking to do so.
What is a Display Energy Certificate (DEC)?
The DEC records the energy efficiency of the building and the
operational rating energy use averaged over the preceding three
years. It must be renewed annually (it is valid for 15 months) and
the accompanying advisory report is valid for seven years.
DECs are required for public buildings with more than 500m2
of ‘useful floor space’, that are occupied by public authorities or
bodies providing a public service, and that are frequently visited
by large numbers of the public. The DEC must be prominently
displayed in a clearly visible place. Properties affected include local
authority buildings, courts, hospitals, schools and stations.
In addition, an EPC must be clearly displayed in private buildings
where a total useful floor area exceeding 500 square metres is
frequently visited by the public. This means that premises that are
open to the public such as shops and cinemas may be affected.
What are the new air conditioning rules?
Inspections of air conditioning systems will be required every
five years. An advisory report on increasing efficiency must be
supplied and must also be registered with the local authority.
The regulations will apply to units of more than 250kW from
4 January 2009. Units of more than 12kW will be affected from
4 January 2011.
What sanctions are there for failure to comply?
Fines will be imposed for failure to comply with the regulations.
It will be an offence to disclose an EPC or any report to someone
not entitled to receive it. It will also be an offence to give wrong
information in, or to fraudulently obtain, an EPC or DEC.
Willans fact sheet
Energy Performance Certificate (EPC)
What do I need to do?
•Study the requirements carefully to make sure you are
prepared.
• A
ssess your building to see how the regulations are going to
apply to it. For example, owners of multi-let buildings need to
decide how they are going to deal with the requirement. The
EPC will be needed, not just for the part being let, but also
shared facilities and common parts such as common heating
and air conditioning systems, the structure of the building and
shared access areas and facilities such as toilets and kitchens.
Are the costs to be recovered from the tenants via the
service charge?
The tenants are unlikely to look favourably on the idea of
contributing to the cost of EPC assessments where it is not
required for their own purposes.
Key dates and requirements
From 4 January 2009:
5 yearly A/C inspections for units of more than 250kW.
From 4 January 2011:
5 yearly A/C inspections for units of more than 12kW.
By 9 July 2015:
DECs for public buildings of more than 250 square metres
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Contact
Please contact one of the lead partners in our
commercial property team.
Willans LLP solicitors
28 Imperial Square, Cheltenham
Gloucestershire GL50 1RH
Laurence Lucas laurence.lucas@willans.co.uk
01242 514000
www.willans.co.uk
Susie Wynne
© Willans Sepember 2010
Jonathan Mills jonathan.mills@willans.co.uk
susie.wynne@willans.co.uk