NON DOMESTIC ENERGY PERFORMANCE CERTIFICATES
Non-dwellings are responsible for almost 20 percent of the UKs energy
consumption and
carbon emissions. As such the Energy Performance of Buildings Directive (EPBD)
is currently
being implemented in the UK with a view to reducing carbon emissions. This
Fact Sheet
outlines the requirements laid out by the regulations for the construction,
sale or letting of non
dwellings.
What is an Energy Performance Certificate (EPC)?
An EPC is a certificate which provides an energy rating of the building from A
to G, where A is
very efficient and G is the least efficient. The energy performance of the
building is shown as a
Carbon Dioxide based index. The certificate looks very similar to the energy
labels found on
vehicles and kitchen appliances.
The asset ratings in the EPC reflect the characteristics of the building and
its services such as the
heating, lighting and air conditioning. This rating also takes account of the
age and condition of
the building.
The recommendations reports contains guidelines on how to use the building
more effectively.
The EPC contains the unique EPC number, the date of issue and the date when it
is valid to as
well as the Energy Assessors details and information on how to complain and
confirm the
validity of the certificate.
Timing on Non Domestic EPC Implementation
Implementation dates are based on the size of the property. You will need an EPC
in place on
sale, letting or construction of non domestic property as follows:-
Over 10,000 square meters 6th April 2008
Over 2,500 square meters 1st July 2008
Any size under 2,500 square meters 1st October 2008
Air Conditioning Systems over 250kW 4th January 2009
All remaining Air Conditioning Systems over 12 kW 4th January 2011
Even if the property was being marketed for rent or sale before these dates,
unless a sale has
been agreed you will need to have an EPC in place in order to continue marketing
the property.
New Guidelines on transitional implementation
The Department of Communities and Local Government (DCLG) amended their approach
in
mid-March to introduce a transitional period for buildings already on the market
at 6th April
2008.
Any buildings over 10,000 m2 which are on the market before then and remain
on the market
afterwards will not need an EPC until 1 October. If the property is sold or
rented out in the
meantime, an EPC must be commissioned and then handed over as soon as
practicable.
This amendment is in response to industry pressure (apparently necessary due to
a shortage of
suitable energy assessors) and will make it easier for owners and landlords of
large buildings to
comply with the legislation. Similar provisions will apply for the introduction
of EPCs on
buildings over 2,500 m2 that were on the market before 1st July, again, these
properties will
need an EPC commissioning as soon as the property is rented or sold and by 1st
October at the
latest.
As for the uncertainty of the definition of 'on the market', the guidance
from DCLG has pointed
towards the following milestones:
when any written information about the building is provided in response to a
request
for information received from the prospective buyer/tenant; or
when a viewing is conducted; or
in any event, before entering into a contract to sell or let.
An exemption also applies if the buildings were taken off the market but put
back on the
market within 28 days following withdrawal or rejection of an offer previously
accepted by the
seller or landlord.
However, on 1 October 2008 (and assuming no contract has been entered into)
the transitional
arrangements end and an EPC will have to be made available for all property
sizes.
Where the seller/landlord is taking advantage of the transitional arrangements
but then takes
the building off the market, if the seller/landlord remarkets the building
before 1 October (and
has not taken advantage of the 28 day exemption mentioned above), an EPC will
have to be
made available in accordance with the marketing stages above.
Where the seller/landlord has benefited from the transitional arrangements and a
contract for
the sale or letting of the building is entered into before 1 October 2008, the
seller/landlord
must, if it has not already been done:
(a) make a request for an EPC as soon as reasonably practicable;
(b) make all reasonable efforts to obtain an EPC as soon as reasonably
practicable; and
(c) when an EPC is obtained, ensure that it is given free of charge to the
person who has bought
or rented the building.
Such a requirement would also appear to apply to a completion of the
sale/letting before 1
October 2008 where there was no prior contract. If a contract for the sale or
letting of the building is entered into on or after 1 October 2008, the standard
EPC requirements apply (see marketing stages above).
How long with a Non Domestic EPC be valid for?
All Non Domestic EPCs whether used for construction, sale or rental purposes
will last for 10
years unless major modifications are made to the building.
Responsibilities for providing and EPC
Regarding construction it will be the responsibility of the person carrying out
the construction
to give an EPC and recommendations report to the owner of the building and to
notify Building
Control. An EPC is required immediately if a property is marketed for sale or
rent. The EPC
must be made available to prospective purchasers or tenants.
It is the seller or the landlord that is ultimately responsible for ensuring
the building has the
appropriate EPC. However, the person responsible for marketing the building for
sale or let
must also ensure that the EPC is made available.
Penalties for not having an EPC at the required time
Trading Standards Officers are responsible for enforcing the requirement to have
an EPC.
Failure to provide an EPC when required by the regulations means you may liable
to a civil
penalty notice. If asked by Trading Standards to provide your EPC and
recommendation report
you must do so within 7 days of the request or you will be liable to a penalty
charge notice.
The fine relates to the rateable value of the building and in most cases is set
at 12.5%. When a
rateable formula cannot be applied the penalty will be between £700 and £5,000
dependent on
the size and complexity of the building. Importantly you will be requested to
commission an
EPC after the fine, so you would end up paying for the fine and the EPC.
You can defend the penalty charge if you commissioned an EPC at least 14 days
before it was
required and despite all reasonable efforts you have not received a valid EPC at
the relevant
time.
Who can produce Non Domestic Energy Performance
Certificates?
EPCs must be carried out by suitably qualified energy assessors who are
accredited with an
approved Government accreditation scheme.
There are 3 levels of non domestic energy assessors:-
Level 5 Large buildings over 10,000 m2 as well as smaller buildings that
have
particularly complex feature such as curved fascias, atriums and complex service
systems.
Level 4 - Medium sized buildings between 2,500 m2 and 10,000 m2, smaller
buildings
that have complex service systems and features
Level 3 - Small buildings below 500 m2
We can provide EPCs for all of the above levels on a National basis. Our bespoke
IT systems will
ensure the efficient pricing and delivery of your EPC requirements.
How much will EPCs cost?
The size and complexity of the building will obviously have an effect on the
time required to
carry out and complete the EPC and will, therefore, have an impact on the price
of the EPC.
We have developed a matrix calculator which enables the input of some basic
information
about the building in order to provide a price guide, however, we cannot confirm
prices for
Level 4 and 5 without receiving detailed information on the building, its
complexity and its
services. The matrix calculator will shortly be available on our Commercial
Departments area
of our website.
Information required in order to conduct a Non
Domestic EPC
The information we require relates to the building as a whole as well as zones
or individual
spaces, examples of these include retail and office space, storage space,
kitchens, operations
rooms etc.
We will require the following information:-
The dimensions of the building as a whole together with a breakdown of the
dimensions
of the individual zones and details on what the zones are used for so we can
assess the
demands of each zone
The heating and ventilation services for each zone
Lightings and controls used in each zone
The materials used to construct the building and any information on the
thermal
efficiency of those materials such as the roof, walls, windows, doors and wall
insulation
Plans of the building if they are available preferably in electronic format
If there are no plans we may need to survey the building and gather
information which
adds to the overall cost
The energy assessor must ensure that the information provided is accurate and
may
need to check various aspects of the information provided
Any construction records available
Records of modifications to the building
At which point you need to provide an EPC?
An EPC and recommendation report must be made available at no cost to
prospective
purchasers or tenants at any time and certainly when:-
A viewing is taking place
Written information about the building is provided to a prospective purchaser
or
tenant
Aprospective purchaser of tenant requests the EPC
Buildings requiring an EPC
All buildings that have a roof, walls and use energy to condition the indoor
climate will require
an EPC, this would include heating, mechanical ventilation or air conditioning.
Importantly a
standalone hot water system without a heating system does not condition the
indoor
environment and therefore the building would not require an EPC.
Exemptions
The purpose of an EPC is to provide potential purchasers or tenants to consider
the energy
performance of the building as part of their decision process. Where
transactions would not
amount to the sale or let of a building to a new owner there are exemptions:-
Lease renewals or surrenders
Compulsory purchase orders
An EPC is not required for the following:-
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 50 square
meters that
are not dwellings.
Industrial sites, workshops and non-residential agricultural buildings with
low energy
demand
Buildings due for demolition
Existing tenancies
There is no requirement to have an EPC for an existing tenancy as an EPC is only
required when
a property is marketed for sale or rent or on construction.
Selling or letting a building as a whole
An EPC can be completed for the whole building even if the building is divided
into parts
designed to be used separately with separate heating systems.
Sale or letting of part of a building with a common heating system
If a building has a common heating system there are the following choices:-
To instruct an EPC for the whole building
To instruct an EPC for a part designed or altered to be used separately being
offered for
sale or let. The EPC would be based on energy used per square metre of the whole
building. The EPC may be based on an assessment of a similar representative unit
in the
same building.
Sale or letting of separate parts of buildings with
separate heating systems
An EPC is required 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.
The EPC can also be
based on an assessment of a similar representative unit win the same building.
Communal areas in buildings with independent heating
systems
Where there is an independently conditioned shared or communal area where the
main
purpose of the space is to provide access to individual units the energy
consumption would be
allocated to each unit in relation to the proportion of the floor area for each
unit.
Mixed domestic and non domestic buildings
Using an example of a shop with a flat above, the shop would require a non
domestic EPC and
the flat would require a separate domestic EPC. The software used for domestic
EPCs is
different to that used for non domestic EPCs and therefore the two types of
property cannot be
created as one EPC.
Buildings with mixed use and split tenancy
arrangements
Buildings with mixed occupancy patterns are a complex matter. For example, a
shopping
centre or offices with individually let units can be assessed as a whole or
individually but the
ability to do this relates to a number of complex conditions. Please contact us
for bespoke
advice on your building if you feel it falls into this category.
For further information please contact us on
Energy Assessment Ltd
24 Stanley Road,
Stourbridge,
West Midlands,
DY8 2DN
Tel: 0845 094 0891 Email: info@energyassessment.biz
Website: www.energyassessment.biz