EPC rules to be extended during 2008

May 27 2008 by Karen Dent, The Journal

SINCE April 6 2008 owners of all non-dwellings and commercial buildings of more than 10,000 sq m have a responsibility to produce an energy performance certificate (EPC) for the building before it can be sold or leased.

This responsibility will be extended during the course of 2008 so by October 1, all non-dwelling buildings will require an EPC before the premises can be transferred. An EPC will also be needed for all newly constructed buildings.

EPCs have been introduced in an effort to improve the energy efficiency of commercial buildings. The certificate must be prepared and signed by an authorised assessor and it will state an energy efficiency rating between A and G (A representing excellent performance and G being very poor). The certificate will be accompanied by an advisory report which explains the rating and states recommended works to improve the energy efficiency of the premises.

Failure to hold a valid EPC when required is a criminal offence, carrying a maximum penalty of a £5,000 fine. Responsibility for regulation and enforcement of the new rules rests with the trading standards department of local authorities.

Production of an EPC is the responsibility of the party wishing to sell or lease the premises and the certificate must be made available to all prospective purchasers or tenants. This may not be straightforward as it is expected that there may be a delay in assessments being carried out during the first few months of the scheme as assessors struggle to meet initial high demand. This problem is further exacerbated because many property investors have opted to commission EPCs for their entire portfolio at the outset.

A further issue to consider is exactly what area should be included in the EPC and who should be funding it. This is particularly relevant in multi-tenanted buildings where common facilities such as heating and air conditioning systems must be considered.

There are a number of practical questions which must be tackled as the system filters into practice over the coming months