Industrial Energy Efficiency Certificates (EPCs)

The Energy Functionality of Buildings (Certificates and Inspections) (England and Wales) Regulations 2007 SI 2007/991 as amended was the Government’s response to European Union Directive 2002/91/EC on the Energy Overall performance of Buildings. The Directive calls for member states to have a program for comparing the energy performance of buildings in spot by 4th January 2009 or fines will be imposed, so there is no additional scope for the Government to delay the introduction of industrial EPCs.

The EU directive was component of the Union’s response to the Kyoto Protocol, an amendment to the UN Framework Convention on Climate Change. All the major political parties in the UK are committed to action to cut CO2 emissions and as non-domestic properties contribute about 20% of our CO2 emissions it was inevitable that action would be taken to try to modify the behaviour of constructing owners and occupiers. EPCs are component of that action and they are here to remain.

Suggestions Report

In addition to the certificate the Commercial Energy Assessor (CEA) need to prepare a Suggestions Report which is created to assist owners and occupiers to strengthen the energy efficiency of their buildings. The report only consists of improvements that the CEA considers to be proper for the creating that has been assessed. For each recommendation indicative payback periods are noted. The recommendations are supplied in four categories, i.e. these:


with a short payback period of significantly less than three years


with a medium term payback of amongst three and seven years


with a extended term payback of higher than seven years


other suggestions based on the CEA’s expertise

The calculation process

For most properties the calculation approach is a piece of Government approved computer software referred to as the Simplified Building Energy Model (SBEM). Ahead of entering the required data into the SBEM computer software, the CEA requires to follow the following process:


The CEA splits the building into zones according to the variety of activity, heating, cooling, ventilation and lighting in every zone. A single space might include a number of zones. The floor area, wall, ceiling/roof and glazed areas for every zone must then be calculated.


The CEA then requires to ascertain the building of the creating and zone envelopes and may possibly require to calculate U Values (the quantity of heat that can pass via the material) and Cm Values (how much heat the material can hold).


The CEA requires to obtain out as a great deal info as doable on the heating, cooling and ventilation systems in addition to the lighting, glazing and water heating.


When all the facts has been obtained to the CEA’s satisfaction, they will input the information into the computer software and run the EPC calculation. They ought to also prepare the Suggestions Report.

For complicated buildings, or where little or no information has been provided by the particular person responsible for procure the EPC, the whole course of action can be incredibly time consuming. It is critical to keep in mind that the CEA owes a duty of care to all parties, not just the person or corporation that has instructed them, to assure that the EPC is accurate. CEAs might face criminal proceedings for generating an EPC fraudulently and anyone who believe that an EPC could be wrong can apply to the CEA’s accreditation body to have the matter reviewed.

General Info

EPCs are valid for 10 years in normal circumstances or until a newer EPC is prepared. From 1st October 2008 virtually all commercial properties will have to have to have an EPC following exchange of contracts for a sale or letting. From 4th January 2009 this requirement will be extended so that all such properties will require an EPC when they are placed on the industry and out there for interested parties to view the premises. A lease assignment is deemed to be a letting for these purposes. Responsibility for making certain that here is a valid EPC for the developing or any element that is becoming supplied for sale or to let rests with the owner or lessor respectively even if they have appointed an agent to act on their behalf.

EPCs are also essential when buildings are constructed. He celebration carrying out the construction is essential to acquire the EPC and Recommendations Report in this case and should inform Constructing Handle when this has been done.

epc scotland are not necessary for the following transactions:


lease renewals or extensions


compulsory obtain orders


sales of shares in a enterprise where buildings stay in corporation ownership


lease surrenders

EPCs are not necessary for the following forms of buildings:


areas of worship


short-term buildings with a planned time use of less than two years


stand alone buildings with a total beneficial floor region of significantly less than 50m2


industrial web pages, workshops and non-residential agricultural buildings with low power demand


The price of preparing an EPC will depend on the quantity of time that the CEA requirements to take to inspect the home, receive the data required for the SBEM calculation and to contemplate the contents of the Suggestions Report. This will differ based on the size and complexity of the developing and the solutions in it. The market will determine the charges of an EPC, but most CEAs will ascertain their expenses based on the time that all the perform involved in anticipated to take.

The Government’s regulations state that the EPC must be made offered to potential purchasers or tenants free of charge , but in some circumstances (usually exactly where a creating has a single heating system) landlords may be in a position to obtain a single EPC for a developing that is split into several parts and recover the charges involved from the tenants of the numerous components by way of the service charge. This will rely on the wording of the various leases.

Penalties for not possessing an EPC when expected

Regional authorities (commonly their Trading Standards Officer) are accountable for enforcing the requirement to have an EPC on sale or letting of a building. Failure to make an EPC available when required indicates that you will be liable for a civil penalty charge notice. If the Trading Standards Officer receives a complaint they may well request you to deliver them with a copy of the EPC and Suggestions Report within seven days. They can make such a request at any time up to six months after the last day for compliance with when the duty was to make it obtainable.

The penalty for failing to make an EPC out there to any prospective buyer or tenant is fixed , in most circumstances, at 12.five% of the rateable worth of the building, with a default penalty of £750 exactly where the formula can not be applied. The variety of penalties below this formula are set with a minimum of £500 and capped at a maximum of £5,000.

You have a defence against a penalty charge notice if you created a suitable request for an EPC to an suitable particular person at least 14 days prior to it was essential and despite all affordable efforts you have not received a valid EPC at the relevant time, or exactly where you rent to a tenant in an emergency requiring his urgent relocation.

In addition, if you fail to present an EPC there is a danger that any sale or letting may possibly be delayed.

Show Power Certificates

Display Energy Certificates (DECs) are also essential from 1st October 2008, but these are almost exclusively for public bodies with frequently visited public buildings. DECs record an Operational Rating, which is calculated directly by reference to the energy consumption in the constructing over the course of a year. DECs are valid for one particular year and the accompanying Advisory Report (equivalent to the Suggestions Report with the EPC) is valid for seven years.