There has been an important change in the law which may require you to take action. The Government have implemented the EU Directive on the energy performance of buildings with the aim of reducing the UK’s CO2 emissions. This Directive introduces the need for energy certification of buildings through Energy Performance Certificates (EPCs).
What is an EPC?
An EPC can be compared to an energy efficiency rating of an electrical appliance. It details the energy efficiency of a building and identifies the environmental impact of that building in relation to carbon emissions.
What information does an EPC contain?
EPCs describe a building’s theoretical energy performance, assuming standard useage, based on its construction geometry, materials, heating, ventilation, cooling and lighting. EPCs also suggest improvements that can be made to a building to improve its energy performance.
How long are they valid?
10 years.
Who requires to take action and when?
From 4 January 2009 EPCs will be required for Scottish residential and commercial properties when sold or leased. An EPC will not be required for existing lets, assignations, renewals, extensions or on the surrender of a lease. However, if the sale of a homeowner’s residential property triggers the requirement to obtain a Home Report an EPC will be required from 1 December 2008. In relation to new build properties, an EPC must be attached to the completion certificate if the building warrant for the building was applied for after 1 May 2007.
Are there special provisions in relation to public buildings?
Yes. Public buildings must publicly display an EPC from 4 January 2009. In other buildings, the EPC must be located in a place which is easily accessible and protects the Certificate from damage.
What buildings are defined as “public”?
A building is classed as a public building if all of the following apply to the building:-
- the conditioned (heated/cooled) area of the building is over 1000m2;
- the building is occupied by public authorities or provides public services to a large number of persons;
- the building is frequently visited, at least weekly, by members of the general public;
- the public have a right of access to the building, or parts of the buildings providing services directly to the public; and
- public funding, including part funding, is used to operate, for general upkeep, or to fund staff costs.
Are any buildings exempt from the new EPC requirements?
Yes. EPCs will not be required for the following buildings:-
- buildings which do not use fuel or power for controlling temperature;
- buildings that are ancillary to a dwelling, that stand alone and have an area less than 50m²;
- limited life buildings which have an intended life of two years or less;
- residential buildings used as emergency accommodation (12 week limit); and
- residential accommodation used for short term holiday letting (but letting the property to someone for a period of 12 weeks or more will trigger the requirement for an EPC).
Who prepares EPCs?
An EPC must be produced by a member of an accredited body. A list of the accredited bodies can be found online at http://www.sbsa.gov.uk/european_issues/epcprotocols.htm
Are there penalties for a failure to comply?
Yes, a fine of up to £5000. A criminal conviction can also be tagged onto the fine.
Failure to comply with the new regime could result in delays and complications in the sale or letting of property.
If this change in the law affects you or your business and you are unclear as to the steps you need to take please feel free to contact bto.
Contact
James Dickson
(Information posted in December 2008 may not have been updated at time of reading).