What are EPCS

Non-Domestic Energy Performance Certificates (EPC’s)

What is an EPC and what does it mean?

The EPC looks broadly similar to the energy labels now provided with vehicles and many household appliances. Its purpose is to indicate how energy efficient a building is.

The certificate will provide an energy rating of the building from A to G, where A is very efficient and G is the least efficient.

The better the rating, the more energy-efficient the building is, and the lower the fuel bills are likely to be. The energy performance of the building is shown as a Carbon Dioxide (CO2) based index.

Each energy rating is based on the characteristics of the building itself and its services (such as heating and lighting). Hence this type of rating is known as an Asset Rating.

The Asset Ratings will reflect considerations including the age and condition of the building. It is accompanied by a Recommendation Report, which provides recommendations on using the building more effectively, cost effective improvements to the building and other more expensive improvements which could enhance the building’s energy performance

Why Energy Performance Certificates are required

An Energy Performance Certificate (EPC) is intended to inform potential buyers or 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.

An EPC will provide an energy rating for a building which is based on the performance potential of the building fabric and its services, such as heating, ventilation and lighting. It is accompanied by a recommendation report, which provides recommendations on how the energy performance of the building could be enhanced, together with an indication of the payback period.

Buildings that require an energy performance certificate

An EPC is only required for a building when constructed, sold or let. For the purposes of the regulations, a building is defined as:

“a roofed construction having walls, for which energy is used to condition the indoor climate, and a reference to a building includes a reference to a part of a building which has been designed or altered to be used separately”.

If the building is not yet built or not yet ‘fitted-out’ then, it will require an EPC based on the assumed ‘fit out’ in accordance with the requirements in Part L of the Building Regulations.

How long does an EPC last for?

A Non-Domestic EPC lasts for 10 years, or until a newer EPC is produced. A new EPC will be required if a building is modified, i.e. The fixed services are upgraded or modified, or the number of internal units changes.

Situations where an EPC is not required

EPC’s are not required on construction, sale or rent for: places of worship, temporary buildings, stand-alone buildings with a total floor area of less than 50m2 that are not dwellings or industrial sites, workshops and non-residential agricultural buildings with low energy demand.

EPC’s are not required on sale or rent for buildings due to be demolished. The seller or landlord should be able to demonstrate that: the building is to be sold or let with vacant possession or the building is suitable for demolition and the resulting site is suitable for redevelopment or that a prospective buyer or tenant intends to demolish the building

Transactions not considered a let or a sale

Not all transactions will be considered to be a sale or let, and therefore an EPC will not be required, such as: lease renewals, extensions or lease surrenders and compulsory purchase orders and sales of shares in a company where buildings remain in company ownership.

Legal obligations

As soon as a building is in the process of being offered for sale or let, it is the responsibility of the responsible person (landlord or seller) to make available an EPC to prospective buyers and tenants free of charge.

The seller or landlord is responsible for ensuring there is an EPC for the building, even if an agent or another service organisation is acting on their behalf or providing an EPC. The seller or landlord should therefore ensure any agents acting on their behalf are complying with the Regulations.

Penalties for not having an EPC

Local authorities (usually by their Trading Standards Officers) are responsible for enforcing the requirement to have an EPC on sale or let of a building. A copy of an EPC can be requested at any time up to six months after the last day for compliance with when the duty was to make it available.
The penalty for failing to make an EPC available to any prospective buyer or tenant when selling or letting non-dwellings ranges from £500 to £5000 per building.