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Energy Performance Certificates - Requirements for Commercial Property
Energy Performance Certificates-NON-DWELLINGS/COMMERCIAL
Regulatory Requirements as of 1st October 2008
When is an EPC required?
An EPC is only required for a building when constructed sold or let.
Transactions not considered to be a sale or let:
- Lease renewals or extensions
- Compulsory purchase orders
- Sales of shares in a company where buildings remain in company ownership
- Lease surrenders
Definition of a Building
For the purposes of the regulations, a building is defined as:
"A roofed construction having walls, for which energy is used to condition the indoor climate, and a reference to a building included a reference to a part of a building which has been designed or altered to be used separately."
For a building to fall within the requirement for an EPC it must:
- have a roof and walls
- use energy to condition the indoor climate.
Services that are considered to condition the indoor climate are the following fixed services:
- Heating, mechanical ventilation or air-conditioning.
Although the provision of hot water is a fixed building service, it does not "condition the indoor environment" and would not therefore be a trigger for an EPC. The same argument applies to electric lighting.
A building can be either:
- the whole of the building
- part of a building, where the part is designed or altered to be used separately.
How to determine the requirement for an EPC
In general terms the EPC provided should reflect the accommodation being sold or let. To determine the requirement for an EPC in a building, the following should be considered:
Buildings with a common heating system
- one EPC can be produced for the whole building and used when the building, or any part of it, is sold or let.
Buildings without a common heating system
- an EPC should be prepared for each part being offered for sale or let. If an EPC does exist for the whole building (e.g. as a result of construction) it is not possible to use this unless the whole building is being sold or let.
How long are EPCs valid?
An EPC for a non-dwelling will be valid for 10 years or until replaced with a newer one.
Who is responsible?
It is the responsibility of the seller or prospective landlord to make an EPC available to all prospective purchasers or tenants free of charge, even if an agent or organisation is acting on their behalf.
Penalties for non compliance
Local authorities are responsible for enforcing the requirement to have an EPC on sale or let of a building. The penalty for failing to make an EPC available when selling or letting non-dwellings is fixed, in most cases, at 12.5% of the rateable value of the building.
Exemptions
An EPC is not required in the following cases:
- Stand alone buildings with a useful floor area of less than 50mē
- Industrial sites, workshops and non residential agricultural buildings with low energy demand.
- Buildings that are due to be demolished (if evidence of this is provided)
Further Information
The Energy Performance Inspection must be carried out by a Government accredited Commercial Energy Assessor. Please call Rhiannon on 01435 864020 if you need any further information or to arrange for an Energy Performance Certificate for your buildings.
