Property Search 
Energy Performance Certificates Introduced for Commercial Property
03/04/2008
Between now and October 2008, Energy Performance Certificates (EPCs) are being phased in and will be required by anyone constructing, selling or letting a commercial property. These are the direct result of the European Union Directive 2002/91/EC inspired by the Kyoto Protocol aimed at cutting back on energy consumption.
John Clark, Associate Director at property consultants Aitchison Raffety says “the certificates are intended to allow prospective purchasers or tenants to compare buildings and thus make decisions based on environmental grounds and likely future running costs. The energy rating will be on a scale from A-G, where A stands for the most efficient and G for the least efficient.” The intention is to affect the way occupiers procure accommodation through disadvantaging poorly performing buildings.
Implementation timescales are being staggered through 2008. EPCs for buildings in excess of 10,000m² will be required from 6th April 2008. Buildings over 2,500m² will require them by 1st July and from 1st October all commercial properties being constructed, sold or let will need to have an EPC. According to John Clark “It is the action of selling, letting or construction that triggers the requirement.” Therefore existing occupiers and tenants will not require one unless they sell, assign or sublet their interest.
In terms of the requirement for an EPC, buildings can have multiple tenancies, differing lease agreements, various sub-letting arrangements and different uses (eg. mixed retail, residential and office accommodation). In general terms an EPC should reflect the accommodation being sold or let.
- Selling or Letting a building as a whole
An EPC can be prepared for the whole building even if it is divided into parts designed to be used separately with separate heating systems. - Selling or Letting part of a building
If the building has a common heating system, then the seller has a choice to prepare an EPC for the whole building or to prepare one for the part of the building which is being offered for sale or let. - For buildings with separate parts and separate heating systems, an EPC is required for each part of the building that is being offered for sale or let.
Penalties exist for those who do not comply. Governed by Trading Standards these will be based on 12.5 per cent of rateable value with a maximum cap of £5,000.
As can be imagined, the amount of information and time required to produce a certificate is daunting resulting in additional expense and potential delays due to the Government’s slowness in providing adequate training for assessors.
Aitchison Raffety’s advice for those seeking to market commercial properties this year is to act sooner rather than later in planning for an EPC as delays may well occur. For further advice contact John Clark, Aitchison Raffety 01442 864713.
