Legislation fully implemented in October has made it easier for landlords and tenants to compare the energy performance of commercial buildings, encouraging sustainable business practices.
As of October 1st, all commercial properties must now have an Environmental Performance Certificate (EPC) when they are constructed, sold or let.
Designed to make comparing the energy performance of buildings quick and simple, this is part of The Energy Performance of Building Directive from Europe, which Britain signed up to in 2003 and which assesses energy efficiency and carbon emissions.
EPCs rate buildings for energy efficiency, with an assessment from A-G which is broadly similar to the labels on domestic appliances (where A is very efficient and G is very inefficient). The energy rating is designed to help with renting or selling a property as they indicate how energy efficient the property is and could also provide information that may help to reduce the running cost of the property.
Patrick Wood, Head of Commercial Property at Nottingham Solicitors Fraser Brown, said, “The impact of EPCs should be to differentiate good from poor performers and if a building’s energy performance can be measured it can be priced accordingly. Therefore the potential impact on the market will be to make properties with a better rating more attractive, with better performers possibly attracting a premium, thereby increasing the business case for energy efficient buildings.”
EPCs are supplied with a recommendation report that lists cost effective and other measures (such as low and zero carbon generating systems) to improve the energy rating of the building. The certificate is also accompanied by information about the rating that could be achieved if all the recommendations were implemented.
EPCs for commercial buildings contain two types of ratings: asset certificates and operating certificates. Asset certificates measure the basic energy performance of the building based on its design while operating certificates measure how the building is managed and actually performs. EPCs should be renewed every 10 years and produced whenever a property is marketed for sale or lease.
A further impact of the European regulations is an obligation now imposed on those who have control of air conditioning systems (with a minimum calorific output of more than 12KW) to ensure that the system is inspected at least every five years by an energy assessor. For systems already in place before 1 January 2008, the first inspection must take place before 4 January 2009 for systems of more than 250KW and before 4 January 2011 for all systems of more than 12KW.
To find out further information on EPCs contact Fraser Brown on www.fraserbrown.com
Fraser Brown is a dynamic law practice working at premises in Nottinghamshire through its branches in Nottingham, Radcliffe on Trent and Bingham.
Its philosophy is to deliver superior legal advice through a personal and highly professional service for both commercial and private clients. Since 1990, Fraser Brown has acquired eight established and respected local firms as part of its major growth strategy for doing business in the 21st Century.
Fraser Brown is one of the region's longest established firms of solicitors. Over the last 12 months, it has experienced significant growth in areas such as property, contract work, construction and general litigation.