What is a
Commercial EPC and why do I need one?
The Government has introduced Home Information Packs (HIP's) as part
of wider reforms to cut carbon emissions from homes and improve the
process of buying and selling properties.
From 1 October 2008 sellers and landlords will be required by law to
provide an Energy Performance Certificate (EPC) for all buildings or
parts of buildings when they are sold or rented. Those carrying out the
construction of a building will be required to provide an EPC to the
owner.
An Energy Performance Certificate gives prospective buyers or tenants
information on the energy efficiency and carbon emissions of a building.
The certificate will be phased in from April 6 2008 when buildings
sold, rented or built with a total floor area of more than 10,000sq m
will require one.
From 1 July 2008, this extends to buildings with a total floor area
greater than 2,500 sq m. From 1 October 2008 all remaining commercial
buildings will require an EPC on sale or rental or upon construction.
What does this mean in practice?
If you are offering any accommodation for sale or let (this
includes sub-letting) you will need to make an EPC available that
reflects the energy performance of the accommodation on offer. An
EPC should be provided to a prospective buyer or tenant at the
earliest opportunity and no later than when a viewing is conducted
or when written information is provided about the building or in any
event before entering into a contract to sell or let.
As a seller or landlord you are responsible for ensuring there is
an EPC available for the accommodation being sold or let even if an
agent or another service organisation is acting on your behalf. You
should therefore ensure any agents acting on your behalf are
complying with the Regulations.
When a building is constructed, it is the responsibility of the
person carrying out the construction when the building is physically
complete to give an EPC and recommendations report to the owner of
the building and to notify Building Control that this has been done.
What is an Energy Performance Certificate?
The Energy Performance Certificate looks similar to the
certificates now provided with domestic appliances such as
refrigerators and washing machines.
It tells potential buyers and tenants about the energy
performance of a building so they can consider energy efficiency as
part of their investment or business decision to buy or occupy that
building.
All EPCs come with a recommendation report which includes advice
and suggestions on improvements you could make to save money and
energy.
How long are EPCs valid for?
An EPC for a commercial building is valid for 10 years, or until
a newer EPC is prepared. During this period the EPC may be made
available to buyers or new tenants.
How do I know whether my building requires an
Energy Performance Certificate?
If you have a building (with a roof and walls) that uses energy
to condition the indoor climate (i.e. has heating, air conditioning
or mechanical ventilation) then you will require an EPC when it is
sold or let. Parts of a building designed or altered to be used as
separate accommodation may require their own EPC.
The sale and let of commercial buildings can be complex with
floors let to different tenants, and with a mixture of retail,
office and residential accommodation.
The EPC required for any space you offer for sale or let must
reflect the energy performance of the accommodation on offer.
Selling or letting part of a building, where the
building has a common heating system: If a building
has a common heating system then the seller or prospective landlord
can prepare (or make available) an EPC for the whole building. This
EPC may then be made available for any part of the building
subsequently offered for sale or let. It is also possible to prepare
(or make available) an EPC for a part designed or altered to be used
separately, if required.
Buildings with separate parts and separate heating
systems: An EPC should be prepared (or made available)
for each part of a building that is being offered separately for
sale or let. The EPC should reflect the services in those part(s)
being offered for sale or let. A separate EPC should be provided for
any common areas that exist solely or mainly for access to the part.
Selling or letting a building as a whole:
You can prepare (or make available) an EPC for the whole
building, even if that building has parts designed or altered to be
used separately with separate heating systems. If the building has a
common heating system, the EPC may subsequently be used for any part
of the building offered for sale or let.
Residential accommodation: Any separate
residential accommodation that is self-contained will require its
own EPC (using SAP or RdSAP as appropriate). Residential space that
can only be accessed via commercial premises (i.e. a house with a
shop in a downstairs room or a shop with accommodation where the
access is through the shop) will be assessed with the commercial
premises as a single building (where SBEM is more appropriate).
Modifications to a building: If a
building is modified to have more or less parts that are designed or
altered to be used separately and the modification includes the
provision or extension of heating, hot water, air conditioning or
mechanical ventilation then an EPC for the building must be provided
on completion of the work.
Further guidance on whether buildings require an EPC can be found
in “a guide to energy performance certificates for the construction,
sale and let of non-dwellings” which can be downloaded from the
Communities and Local Government website.
Are there any circumstances where I don’t
need an EPC?
EPCs are not required before the construction of a building is
completed. Nor are thy required on the sale, rent or construction
of:
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 50m2 that are not dwellings;
industrial sites, workshops and non-residential agricultural
buildings with low energy demand.
As the purpose of EPCs is to enable potential
buyers or tenants to consider energy performance of a building as
part of their investment, transactions which do not involve a new
owner or tenant may not require an EPC. Examples might include:
- lease renewals or extensions to existing tenants
- compulsory purchase orders
- lease surrenders.
How do I get an Energy Performance
Certificate?
By law, EPCs can only be produced by an accredited Energy
Assessor. The accreditation schemes protect builders, owners,
landlords and tenants by making sure Energy Assessors have the
appropriate skills to carry out energy assessments, and that EPCs
are always of the same high quality.
You can find an accredited Energy Assessor at
www.ndEPCregister.com, or by contacting an accreditation scheme on
the Communities and Local Government website. An agent may also help
you locate an assessor.
The energy assessor will need to understand the internal layout
of the building, how it has been constructed, what it is designed to
be used for, the services and lighting and controls used. This is to
understand the energy demands of each individual space (zone) in
accordance with its designed use.
This information is fed into a Government approved software
package which will produce your EPC. At the same time
recommendations will be produced by the software and reviewed by the
assessor with their knowledge of your building to produce a
recommendations report to accompany your certificate.
All EPCs must be registered and stored in the national register
at www.ndEPCregister.com. with a unique reference number. This must
be done by the Energy Assessor in conjunction with their
accreditation scheme
The penalty for failing to make an EPC available to any
prospective buyer or tenant when selling or letting
non-dwellings is fixed, in most cases, at 12.5% of the rateable
value of the building, subject to a minimum penalty of £500 and
a maximum of £5,000. There is a default penalty of £750 where
the formula cannot be applied. A formula is used as the costs of
producing an EPC for nondwellings are expected to vary according
to the size, complexity and use of the building. The EPC will
still be required.
