A new energy certificate will be needed for new and exisiting commercial buildings, and larger public buildings will need two.
From Jan 09 air conditioning systems over 12KW will have to be inspected every five years.
Energy Performance Certificate (EPC)
An EPC sets out an energy rating from A (best) to G (worst) and will include information on CO2 emissions and advice on cost effctive improvements.
From April 08 all new built non dwellings, and all existing buildngs over 500sq m will need an EPC when they are sold or rented. From October 08 this will apply to all non dwelling buildings of all sizes -from Harrods to the Corner Shop.
Display Energy Certificate (DEC)
From 6th April 2008 this will be required for public buildings over 1000 sq m occupied (or part) by public authorities or institutions providing public services - and so frequently visited by the public.
The certificate must be publicly displayed.
The DEC is based on actual energy use over 3 years (if available) and gives an operational rating on how efficently the building is run. They must be renewed every year and are in addition to the EPC.
What happens when?
April 08 - EPC required for sale or rent of non dwellings over 500 sq m
-EPC required on construction of all non dwellings
-DEC for all public buildings over 1000 sq m.
1st Oct 08 - EPC required for all remaining non dwellings
4th Jan 09 - First inspection of all air con systems over 250 KW must be done
4th Jan 11 - First inspection of all air con systems over 12 KW must be done
Who will produce the certificates and who will enforce the legislation?
Only accredited assessors will be able to produce the EPCs & DECs. All assessors must be registered with an approved government accreditation scheme. It is expected there will be 3 levels of assessor for each certificate - basic, intermediate and advanced.
The RICS has lodged a proposal with DCLG to run an accredited scheme.
Building Control will enforce the legislation for new buildings. From 06.04.08 a certificate of completion will not be issued untill the owner has been supplied with an EPC.
Trading Standards will enforce the certification of existing buildings.
Penalty fines will apply if a valid EPC is not produced or a DEC not displayed.
The EPC must be available at the earliest opportunity, no later than the request for marketing details or a request to visit.
The EPC is needed when the building changes occupiers, so it is needed for a new tenant but not an already exisiting tenant renewing their lease.
A certificate is valid for 10 years, and if a valid EPC exisit when changing tenants, no new certificate is needed.
More information from
What will this mean for the market?
The information in the reports could become a new issue for negotiations in the sale & letting of properties.
Tenants are likely to want lower rents for properties with poor energy certificates as this implies higher running costs .
Landlords and tenants may impose 'Green Clauses' or energy efficiency targets upon each other.
The reports will probably tend to change the way properties are valued with efficient buildings attracting higher premiums and an associated reduction in capital values of buildings perceived as inefficient/inferior.