ENERGY PERFORMANCE CERTIFICATES FOR COMMERCIAL PROPERTY

Release date: Nov 2008

With effect from 1st October 2008 almost all commercial property will require an Energy Performance Certificate (EPC) if it is to be leased, sold or built.

The exemptions to this rule include:

  • small non-residential buildings of less than 50 square metres, buildings used primarily as places of worship
  • temporary buildings with a planned time use of 2 years or less
  • industrial sites and workshops
  • non-residential agricultural buildings with low energy demand (difficult to define and an inspection wil be required to ascertain whether a building falls into this category)
  • any "off plan" sales or lettings before construction is completed

The obligation to provide an EPC does not apply to a dwelling which is to be sold or rented or where the seller/landlord can show that the dwelling is suitable for demolition or where the site is suitable for redevelopment and all necessary consents have been obtained.

It is the owners and developers of the buildings who are responsible for providing a valid EPC to a prospective buyer or tenant free of charge at the "earliest opportunity". The obligation to provide an EPC arises when whichever of the following first occurs:

  • The prospective buyer/tenant requests information about the building from the landlord/ seller or agent
  • The prospective buyer or tenant makes a request to view the building
  • The prospective buyer/tenant makes an offer to buy or rent the building

There are some exceptions from the obligation to provide an EPC. The obligation does not apply if the seller/landlord has reasonable grounds to believe that a prospective buyer/tenant:

  • Is unlikely to have sufficient funds to buy or rent the building
  • Is not genuinely interested in buying or renting that type of property
  • Is not someone to whom the seller or landlord would be prepared to sell or rent out the building

A developer must produce an EPC when a new building is erected or where an existing building is converted and the services are modified. The building control department will not issue a completion certificate in respect of the works until an EPC is produced.

Obtaining an EPC involves having an Energy Assessor visit the property to conduct an energy assessment. Only approved Commercial Energy Assessors can issue commercial EPC's. The cost is not dictated by the Government so you may shop around.

The Assessor collects information including dimensions, construction and provisions for heating and hot water. This information is fed through a Government approved software program that produces the EPC and recommendations.

The EPC also provides information showing the energy efficiency and carbon emissions from the building.

The recommendation report provides information on how the energy performance of a premises and the energy rating could be improved if all the recommendations are implemented.

Failure to obtain an EPC can result in a fine. This will represent 12.5% of the commercial value of the building subject to a minimum of £500.00 and a maximum of £5000.00.

On the related topic of energy efficiency, the Government has introduced a requirement for 5-yearly air-conditioning inspections. Air-conditioning systems with an output of over 250kW must be inspected by 4 January 2009, and those with an output of 12kW must be inspected by 4 January 2011. Where a system was first brought into service on or after 1 January 2008, the inspection must be carried out within five years of when it was first put into service.

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