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Energy Performance Certificates

Non-dwellings are responsible for almost 20 percent of the UK’s energy consumption and carbon emissions. As such the Energy Performance of Buildings Directive (EPBD) is currently being implemented in the UK with a view to reducing carbon emissions.

What is an Energy Performance Certificate (EPC)?

An EPC is a certificate which provides an energy rating of the building from A to G, where A is very efficient and G is the least efficient.

The energy performance of the building is shown as a Carbon Dioxide based index. The certificate looks very similar to the energy labels found on vehicles and kitchen appliances.

The asset ratings in the EPC reflect the characteristics of the building and its services such as the heating, lighting and air conditioning. This rating also takes account of the age and condition of the building.

The EPC contains the unique EPC number, the date of issue and the date when it is valid.

How long with a Non Domestic EPC be valid for?

All Non Domestic EPCs whether used for construction, sale or rental purposes will last for 10 years unless major modifications are made to the building.

Responsibilities for providing and EPC

Regarding construction it will be the responsibility of the person carrying out the construction to give an EPC and recommendations report to the owner of the building and to notify Building Control. An EPC is required immediately if a property is marketed for sale or rent. The EPC must be made available to prospective purchasers or tenants.

It is the seller or the landlord that is ultimately responsible for ensuring the building has the appropriate EPC. However, the person responsible for marketing the building for sale or let must also ensure that the EPC is made available.

Penalties for not having an EPC at the required time

Trading Standards Officers are responsible for enforcing the requirement to have an EPC. Failure to provide an EPC when required by the regulations means you may liable to a civil penalty notice. If asked by Trading Standards to provide your EPC and recommendation report you must do so within 7 days of the request or you will be liable to a penalty charge notice.

The fine relates to the rateable value of the building and in most cases is set at 12.5%. When a rateable formula cannot be applied the penalty will be between £700 and £5,000 dependent on the size and complexity of the building. Importantly you will be requested to commission an EPC after the fine, so you would end up paying for the fine and the EPC.

You can defend the penalty charge if you commissioned an EPC at least 14 days before it was required and despite all reasonable efforts you have not received a valid EPC at the relevant time.

Who can produce Non Domestic Energy Performance Certificates?

EPCs must be carried out by suitably qualified energy assessors who are accredited with an approved Government accreditation scheme.
 
There are 3 levels of non domestic energy assessors:-
  • Level 5 – Large buildings over 10,000 m2 as well as smaller buildings that have particularly complex feature such as curved fascias, atriums and complex service systems.
  • Level 4 - Medium sized buildings between 2,500 m2 and 10,000 m2, smaller buildings that have complex service systems and features
  • Level 3 - Small buildings below 500 m2

How much will EPCs cost?

The size and complexity of the building will obviously have an effect on the time required to carry out and complete the EPC and will, therefore, have an impact on the price of the EPC. Individual quotations will need to provided for each EPC requested.

At which point you need to provide an EPC?

An EPC and recommendation report must be made available at no cost to prospective purchasers or tenants at any time and certainly when:-
  • A viewing is taking place
  • Written information about the building is provided to a prospective purchaser or tenant
  • A prospective purchaser of tenant requests the EPC

Buildings requiring an EPC

All buildings that have a roof, walls and use energy to condition the indoor climate will require an EPC, this would include heating, mechanical ventilation or air conditioning. Importantly a standalone hot water system without a heating system does not condition the indoor environment and therefore the building would not require an EPC.
 
The purpose of an EPC is to provide potential purchasers or tenants to consider the energy performance of the building as part of their decision process. Where transactions would not amount to the sale or let of a building to a new owner there are exemptions:-
  • Lease renewals or surrenders
  • Compulsory purchase orders

An EPC is not required for the following:-

  • Places of worship
  • Temporary buildings with a planned time of use less than 2 years
  • Stand alone buildings with a total useful floor area of less than 50 square meters that are not dwellings
  • Industrial sites, workshops and non-residential agricultural buildings with low energy demand
  • Buildings due for demolition
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