- November 22, 2022
- EPC News
The Energy Performance of Buildings Directive (EPBD) was implemented by the European Union in 2003. The Energy Performance of Buildings (Certificates and Inspections) Regulation was subsequently adopted by the UK government in 2007. 20% of the carbon footprint of the UK is caused by commercial buildings. The UK’s commercial building portfolio, both new and old, will be significantly more energy efficient thanks to a number of laws, including EPCs.
In August 2007 for private structures and October 2008 for commercial buildings, the requirement for an EPC for properties placed on the market for sale or rent went into effect. Before they are finished, newly built structures need to receive an EPC. Contrary to popular belief, an EPC must be in place from the very first day the building is advertised. It is not only required when the property is placed “under offer.” An EPC is publicly viewable on the UK Government’s Landmark database and has a 10-year validity period.
The potential energy performance capabilities of a building is measured by an EPC. On a color-coded bar chart, the energy rating is expressed as letters A through G. The building’s CO2 emissions are taken into account, along with the building’s construction materials, heating, cooling, and lighting systems. The certificate is accompanied with a report of recommendations that outlines ideas for enhancing the building’s energy efficiency with quick, medium-term, and long-term payback periods.
The organisation that listed the building for sale, such as the landlord, managing agent, or renter planning to sublease, is legally obligated to obtain an EPC. Additionally, it is a legal need that the marketing agency have EPCs in place for the structures they are publicising. As long as the building has a shared, centralised heating system, the landlord can decide whether to have an EPC for the entire building or only the portion being offered in multi-let complexes. If not, each demised area would need to be evaluated separately. If the region it covers includes the area that will be sold or rented, an EPC may be used again for up to ten years.
EPCs are not required for:
- Lease renewals or extensions to existing tenants.
- Compulsory Purchase Orders
- Lease surrenders
- Sales of shares in a company where the building remains in company ownership
- Exempt buildings
Buildings that are exempt from the requirement for an EPC include:
- Places of worship
- Temporary buildings with a planned use of less than two years.
- Detached, self-contained buildings less than 50 sq m
- Industrial and agricultural buildings without any heating and where it would not be expected to be installed.
- Buildings due for demolition. Proof is required including vacant possession and intent such as a signed demolition contract or planning permission.
If the building is being advertised, the fine for non-compliance is 12.5% of the Rateable Value, with a minimum of £500 and a maximum of $5,000. Local Trading Standards officers are in charge of enforcing the regulations, and they have the authority to demand documentation of an EPC at any time. If an EPC is still not organised after 28 days, the penalty is repeated.
