Energy Performance Certificates
The Energy Performance of Buildings (Certificates and Inspections)
(England and Wales) Regulations 2007 introduced the requirement of the production
of Energy Performance Certificates (EPCs).
The 1st October 2008 marked the final roll-out of Energy Performance Certificates
to all building sectors whether buying, selling or renting homes or buying, selling
or renting commercial buildings. Large public buildings will need to have on public
view a Display Energy Certificate showing the building's energy efficiency rating.
EPC’s can only be produced by an energy assessor who must be a member of an accreditation
scheme approved by the Secretary of State and they must have the appropriate qualifications
or competence to carry out the work. A list of accredited schemes approved by the
Secretary of State is provided on the Communities and Local Government website.
The EPC record shows how energy efficient a property is as a building and provides
A-G ratings. In addition the EPC also contains a rating on the environmental impact
based on carbon dioxide emissions. The ratings are similar to those found on products
such as fridges and are standard so the energy efficiency of one building can easily
be compared with another building of a similar type. The EPC is accompanied by a
Recommendation Report which shows the approximate cost of improvements and the typical
cost saving per year achievable by the recommended improvements. The Recommendation
Report also provides a performance rating once the improvements have been implemented.
They are produced using standard methods and assumptions about energy usage so that
the energy efficiency of one building can easily be compared with another building
of the same type. This allows prospective buyers, tenants, owners, occupiers and
purchasers to see information on the energy efficiency and carbon emissions from
their building so they can consider energy efficiency and fuel costs as part of
their investment.
An Energy Performance Certificate is only required when a building is constructed,
sold or rented out.
It is the responsibility of the person selling or renting a building to have a valid
EPC to show to prospective buyers and tenants. The EPC must be given to the eventual
buyer or tenant.
An EPC is valid for ten years, except for sales of homes which are subject to the
Home Information Pack Regulations 2007, where a Home Information Pack (HIP) is required.
In these cases an EPC must be
no more
than 12 months old when the property is first
marketed.
Enforcement Officers from building control and trading standards divisions of local
authorities are responsible for ensuring that, when required, buildings have an
Energy Performance Certificate. Failure to provide an EPC can result in the Enforcement
Officer ordering production of the EPC and a penalty charge. A penalty charge for
non-compliance of £200 applies to domestic properties. The penalty charge for non-
domestic properties will be 12.5 per cent of the rateable value of the building
with a default penalty of £750 where the formula cannot be applied. The range of
penalties under this formula are set with a minimum of £500 and capped at a maximum
of £5,000. It is the Seller or Landlord who will be liable for the penalty charge.
An EPC is generally not required in circumstances where it can be demonstrated the
building is suitable for demolition and the resulting site is suitable for redevelopment
and that on reasonable grounds the prospective buyer or tenant intends to demolish
the building. Generally this can be demonstrated by having the relevant planning
permission or evidence that planning permission has been applied for.
Further information and guidance can be found on the Communities and Local Government
Website by
clicking here.
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For More Information Contact:
Anjli Bhatt
TPP Law Limited
53 Great Suffolk Street
London SE1 ODB
t 020 7620 0888
f 020 7620 0778
e info@tpplaw.co.uk
Email:
Anjli
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