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Energy Performance Certificates
The Law
The EU introduced the Energy Performance of Buildings Directive (EPBD) in 2002. The UK Government followed with the Energy Performance of Buildings (Certificates and Inspections) Regulation 2007. Commercial buildings contribute 20% of the UK's carbon footprint. EPCs are part of series of legislation to dramatically improve the energy efficiency of the UK's commercial building stock, both new and existing.
Energy Performance Certificates: What is it?
An EPC is a measure of the notional energy performance capability of a building. The energy rating is expressed on an A to G colour coded bar chart scale, similar to those seen on cookers and fridges. The rating is based on the CO2 emissions of the building, factoring in the building's
construction fabric and heating, cooling and lighting services. A report of recommendations accompanies the certificate and sets out suggestions to improve the energy efficiency of the building in short, medium and long payback periods.
EPC Requirements for Commercial Buildings in the UK
When is an EPC required?
- Sale or Let: An EPC is mandatory for all commercial buildings advertised for sale or lease since October 1, 2008.
- Newly Constructed Buildings: EPCs are required before construction completion.
- Marketing Timeline: Don’t wait for an offer – an EPC is needed from the first day of marketing.
EPC Validity
- Validity Period: An EPC is valid for 10 years.
- Public Access: EPCs are publicly available on the UK Government’s EPC register: [find energy certificate ON GOV.UK]
Who is Responsible for Obtaining an EPC?
- Legal Responsibility: The party marketing the building is responsible for the EPC, such as the landlord, company assigning a lease, or a subtenant.
- Marketing Agent Duty: Marketing agents have a duty to inform clients about the EPC requirement.
EPCs for Multi-Let Buildings
- Single EPC vs. Multiple EPCs: You can choose an EPC for the entire building (if it has a central heating system) or for individual lettable units (if they have separate heating).
- Reusing an EPC: An EPC for the whole building can be reused for 10 years for individual unit lets or selling/leasing the entire building.
EPC Exemptions
- Places of Worship
- Temporary Buildings (under 2 years)
- Small Detached Buildings (under 50 sqm)
- Unheated Industrial/Agricultural Buildings
- Buildings for Demolition (with proof)
- Listed Buildings (since January 2013)
Shell and Core EPCs
- Buildings without Fixed Services: If a building is sold or leased without permanent heating/cooling, an EPC based on expected use and most energy-intensive fit-out is required.
Non-Compliance Penalties
- Fines: Failing to have an EPC during marketing can result in a fine of 12.5% of the Rateable Value (minimum £500, maximum £5,000).
- Enforcement: Local Trading Standards enforce EPC regulations and can request proof at any time. Penalties are repeated every 28 days for non-compliance.
Below is an example of an EPC certificate.
Relevant Case Studies