EPC Network

What actually is an Energy Performance Certificate (EPC)?
Why do I need an EPC?
When do I need an EPC?
What happens if I don’t have an EPC when I need one?
When should I arrange for an EPC to be produced?
Do I need to produce a new EPC each time the building is sold or leased?
How do I obtain an EPC?
How much does an EPC cost?
How is an EPC produced?
Are there any exemptions?
What type of rating can I expect my building to achieve?
Should I be concerned that my property achieves a low rating?

What actually is an Energy Performance Certificate (EPC)?
An Energy Performance Certificate is a single sheet of A4 paper which contains a graphic illustration of the energy efficiency of the building, based on carbon emissions and is graded from Band A to Band G. The certificate also includes certain factual information with regard to the property, details of the person or firm providing the certificate and a reference number.

Why do I need an EPC?
The UK Government is committed to implementing directive 2002/91/EC from the European Union in relation to the energy performance of buildings. Implementation of the directive is a devolved matter and the system used in Scotland is different to the remainder of the UK, although the general principles remain similar.

When do I need an EPC?
Under the regulations implemented by the Scottish Government an Energy Performance Certificate is required where a building is to be sold or let. There is no clear guidance from the Scottish Government as to whether this includes the assignation of a lease or a sub-letting and some solicitors are of the view that these two instances are not covered by the regulations, whilst most surveyors and assessors hold the opposite view.

Owners and operators of public buildings over 1000m2 also need to display an EPC. These should have been in place by 4 January 2009.

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What happens if I don’t have an EPC when I need one?
The regulations recognise that in certain circumstances, property transactions can take place relatively quickly and enforcement action will not be taken as long as a request for an EPC has been made within certain timescales. However, if you have taken no steps to obtain an EPC then you may be liable to a penalty charge notice of £1,000, imposed by the local authority. Transitional arrangements are in place until 31st March 2009, which allow owners further leeway with regard to the provision of an EPC.

When should I arrange for an EPC to be produced?
Since the Energy Performance Certificate should be made free of charge to a prospective buyer or a prospective tenant, it follows that the earlier that a certificate is produced, the better. In theory, the EPC should form part of any sales particulars.

Do I need to produce a new EPC each time the building is sold or leased?
No, but you do need to ensure that one is available. An EPC once obtained has a lifespan of 10 years and after the 10 years have expired an EPC is only required at the time of the next sale or letting. However, if improvements are made to the energy efficiency of the building over the course of that 10 year period, it would be sensible to have the existing EPC revised to reflect the improved performance.

How do I obtain an EPC?
EPCs are provided by trained assessors who are members of organisations that have entered into a protocol agreement with the Scottish Government. There are 10 protocol organisations and most assessors are members of the Royal Institution of Chartered Surveyors (RICS) or Chartered Institute of Building Services Engineers (CIBSE).

How much does an EPC cost?
The cost of preparation of an EPC is related to the type of building and the quality of information available. A relatively modern building with up to date record plans will be less costly to assess than an older building of similar layout for which no record drawings exist. The size of the building is also important but a large warehouse is not directly comparable to an office or retail premises of similar size. The process of producing the information necessary to undertake the calculation is complex and time consuming and the cost of producing an EPC for the simplest of buildings will be several hundred pounds.

How is an EPC produced?
Assessors use specialist computer software which collects information and calculates the production of CO2 which is expressed as a numerical value. This number corresponds to ratings from A to G. The work of producing an EPC is concerned mainly with providing accurate measurements of the building, correctly assessing the uses which areas of the building are put to, correctly identifying the forms of construction and the items of plant and machinery used in respect of heating, ventilating and cooling and correctly identifying other factors, such as the effects of daylighting and orientation. The quality of the data reflects the accuracy of the calculation and this is why the process is time consuming and costly.

Are there any exemptions?
Yes. Places of worship are exempt from the regulations relating to public buildings and standalone buildings smaller than 50 sqm are exempt from the requirement in respect of buying or leasing. Temporary buildings with an expected life of less than 2 years and unheated buildings are also exempt.

What type of rating can I expect my building to achieve?
“A” rated buildings are exceptionally rare and would be modern purpose built structures designed to achieve zero carbon emissions. Most brand new buildings would be “C” or “C+” rated but many existing buildings will struggle to achieve a rating of more than “E” and a large number of buildings, particularly in established town centres and those built before the middle of the 20th Century are likely to be “G” (the lowest rating). EPCs are accompanied by a report generated by the computer software advising on measures which can be taken to improve energy ratings and the report also includes the indicative pay-back period for these measures.

Should I be concerned that my property achieves a low rating?
No, not necessarily. Although there are high level discussions ongoing with regard to the possibility of linking energy performance with business rates, there are no firm proposals in place to penalise poorly performing buildings. Some people believe that better performing buildings may achieve higher rental levels and as a result, be more valuable. There is currently no evidence for this, given that the energy performance of buildings is only one of a number of factors which would have an effect on value.