News & Views

Energy Performance Certificates for Commercial Property

Date: 14th October 2008
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From the 1 October 2008, an Energy Performance Certificate (EPC) is required for buildings to be constructed, sold or rented.  The seller/landlord needs to provide a certificate at the earliest opportunity and preferably before the property is put on the market.  At the latest, an EPC is required by the time a prospective buyer/tenant asks for further particulars or views the building.

Until 4 January 2009 there are transitional arrangements in place applying to commercial properties of under 2,500 square metres providing they were on the market before 1 October 2008 and remained on the market at that date.  In these circumstances an EPC does not need to be commissioned until contracts for sale or rent of the property have been exchanged.

Additionally, Display Energy Certificates (DECs) will also be required for those buildings with a total useful floor area of over 1,000 square metres which are occupied by public authorities, or by institutions that provide public services to a large number of people and where the public frequently visit the building.

Exemptions

Only buildings that have a fixed heating system, mechanical ventilation or air conditioning system are required to have an EPC.  The exemptions will therefore include:

• Buildings that only use energy for hot water or electric lighting. Items such as photocopiers or computers that use energy but do not "condition the indoor climate" do not fall within the regulations.
• Buildings used as a place of worship (or mainly used as a place of worship).
• Temporary buildings with a planned time of use of two years or less.
• Industrial sites and workshops with low energy demand - for example  
  • industrial spaces where the atmosphere is not fully heated or cooled, but where there is local heating or cooling appliances to serve, for example, individual workers at work stations.
  • Agricultural buildings which are heated for a few days each year but are otherwise unheated.
• Stand-alone buildings with a total useful floor area of less than 50 square metres, (non-residential).
• Buildings that are to be sold with the intention that the building will be demolished.  

Multi-let buildings

The EPC should reflect the extent of the space being offered for sale or rent. 

Where a building is made of separate commercial units but has a common heating system, one EPC can be prepared for the whole building which can them be used for any part of the building to be let or sold.  Alternatively an EPC can be prepared for the specific part of the building for sale or rent.        

Who compiles the EPC?

An accredited Energy Assessor will need to get the information in order to provide an EPC.  He or she will need to understand the internal layout of the building and its intended use. The information required would include:

• the individual spaces or zones in use within the building, and their dimensions.
• the activities to be conducted within each zone, e.g. retail space, office space, kitchens, storage etc
• the heating and ventilation arrangements for each zone
• the lighting and controls used for each zone
• the construction of the fabric of the building and thermal efficiency of the materials used: roof, floors, walls and glazing.

Enforcement

The local weights and measures authority in each area is responsible for enforcement via Trading Standards Officers.  Those who fail to comply will be issued with a penalty charge notice and a fine equivalent to 12.5% of the rateable value of the building, with a minimum fine of £500 and a maximum fine of £5,000. The responsibility lies with the seller or landlord.  An EPC is valid for up to 10 years.

For further information please contact Liam MacDonnell or Daniel Moan.

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