Energy Performance Certificate - Commercial Property

            What is an EPC?

            An Energy Performance Certificate or 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.

            When do I need one?

            An EPC is only required for a building when constructed, sold or let but certain modifications of existing buildings may also give rise to a requirement. For a building to fall within the requirement for an EPC, it must have a roof and walls and use energy to condition the indoor climate.  Public Authorities and Institutions providing public services must display a valid EPC at all times. It is the date of exchange of contracts which is relevant when considering the point at which the regulations apply.

            The EPC and Recommendation Report must be made available free of charge by the seller or Landlord and must be available at the earliest opportunity and no later than

•·         Firstly when any written information about the building is provided in response to a request for information received from the buyer or tenant

•·         Secondly when a viewing is conducted

            - and in any event, before entering into a Contract to sell or let. The requirement for an EPC is completely irrespective of whether or not the purchaser or tenants wants one.

            Who is responsible for providing the EPC?

            As soon as a building is in the process of being offered for sale, it is the responsibility of the seller to make available an EPC to prospect buyers free of charge.   As soon as a building is in the process of being offered to let, it is the responsibility of the prospective Landlord to make available an EPC to prospective tenants.

            In the case of Auctions, the EPC need not be made available in the catalogue but special rules apply and the general rules as to availability should be followed as above.

            What about residential properties?

            This leaflet only deals with non-residential buildings.  Residential buildings require a domestic EPC on sale or lettings whether as part of a Home Information Pack or otherwise.

            When is the legislation effective?

            The requirement to have an EPC for all buildings applies from the 1 October 2008.   Buildings with a total useable floor area greater 10,000 square metres came into the requirements on the 6 April 2008 and those with an area greater than 2,500 metres squared came within the scheme on the 1 July 2008.

            Are there any exceptions?

            EPC's are not required for

•·         Places of Worship

•·         Temporary Buildings -useful life two years

•·         Stand Alone Buildings with a total useful floor area of less than 50 square metres that are not dwellings

•·         Industrial Sites, Workshops and Non-Residential Agricultural Buildings with low energy demand

•·         Buildings due to be demolished.

Not all transactions are to be considered as a sale or letting and these include

•·         Lease renewals or extensions

•·         Compulsory Purchase Orders

•·         Sales of Shares in a Company where building remain in Company ownership

•·         Lease Surrenders

            Where do I get an EPC?

            An EPC can be obtained from a number of sources including Surveyors and Agents.  The price of an EPC is likely to be highly variable due to the size of the building being assessed. We can help you get your EPC.

            How does the system work?

            Energy Assessors through their accreditation schemes lodge each EPC after they produce it and each is given an unique Certificate reference number. All EPC's are stored on a National Register.  This is the single source of EPC information for a building.   Once EPC's have been registered they cannot be altered. The Energy Assessor has a duty of care under the regulations both to the seller or prospective Landlord and to the prospective buyer or tenant to carry out an energy assessment on a building with reasonable care and skill.

            How long does an EPC last?

            Once an EPC has been produced for a building it is valid for ten years or until a new EPC is         produced.    The EPC is stored in a central register and subsequent owners or tenants can make             the EPC available in the course of any transaction while it remains valid.   It can only accessed         using the unique reference number.

            What are the enforcement provisions?

            Enforcement Officers can request a copy of an EPC from a Landlord or seller at anytime up to six months after it was required.    Local Authorities, usually by their Trading Standards Officers, are responsible for reporting the requirement to have an EPC on sale or let in the building.   Failure to make available an EPC when required means you may be liable to a Civil Penalty Charge Notice.   They may request you to provide them with a copy of the EPC and Recommendation Report.  If asked you must provide this information within seven days or be liable to a Penalty Charge Notice. 

            Penalties

            The penalty for failing to make an EPC available is fixed in most cases at 12.5% of the rateable value of the building with a default penalty of £750.00p when the formula cannot be applied.  The range of penalties under this formula are set with a minimum of £500.00p and capped at £5,000.00p.  You have a defence against a Penalty Charge Notice if you made a proper request for an EPC to an appropriate person at least fourteen days before it was required and despite all reasonable efforts you have not received a valid EPC at the relevant time, or where you rent to a tenant in an emergency requiring his urgent relocation.

            Problem areas?

            Lots of common heating systems and independent heating systems and air conditioning have their own problems and reference should be made to the regulations.