The Government has recently introduced regulations to implement the 2004 Energy Performance of Buildings Directive.

The Regulations in question, namely the Energy Performance of Buildings (Certificates and Inspections) (England and Wales) Regulations 2007, lay down important new requirements, backed up by criminal sanctions, for:

  • the production of Energy Performance Certificates when buildings are constructed, sold or rented out;

  • the display of Display Energy Certificates in large public buildings; and

  • regular inspections of air conditioning systems.

Energy Performance Certificates

The need for an Energy Performance Certificate will be triggered in two situations:

  1. Where a building is to be sold or rented out and a plausible prospective buyer or tenant:

    • requests any information about the building from the seller/landlord or his agent for the purpose of deciding whether to buy or rent the building;

    • makes a request to view the building for the purpose of deciding whether to buy or rent the building; or

    • makes an offer, whether oral or written, to buy or rent the building,

    the seller/landlord must make available free of charge a valid Energy Performance Certificate ("EPC") to the prospective buyer or tenant. 

  2. When a building is constructed or modified, a valid EPC has to be provided to the new owner by the person carrying out the work.

EPCs have to conform to a particular format that is set out in the Regulations. They are valid for a maximum of 10 years unless superseded in the meantime by a fresh EPC.  Where handed over, they should usually be accompanied by a report containing recommendations for the improvement of the energy performance of the building in question.

The new rules on EPCs come into force as follows:

  • From 6 April 2008: EPCs required on construction, modification, sale and rental of non-dwellings of more than 10,000m².

  • From 1 July 2008: EPCs required on construction, modification, sale and rental of non-dwellings of more than 2,500m².

  • From 1 October 2008: EPCs required on construction, modification, sale and rental of all other non-dwellings.

There are limited exceptions to the new rules on EPCs. In particular, they do not have to be made available in respect of:

  • places of worship;

  • temporary buildings with a planned time of use of two years or less, industrial sites, workshops and non-residential agricultural buildings with low energy demand; or

  • stand-alone buildings with a total useful floor area of less than 50m² which are not dwellings.

In addition, EPCs do not have to be given or made available to a prospective buyer or tenant in respect of buildings that will be or are likely to be demolished.

Display Energy Certificates

There are further requirements in respect of buildings with a total useful floor area over 1,000m² that are: (a) occupied by public authorities; or (b) occupied by institutions providing public services and are frequently visited by the public.

On and after 1 October 2008, every occupier of any such building must:

  • have in its possession or control at all times a valid advisory report containing recommendations for improvement of energy performance; and

  • display at all times a valid Display Energy Certificate ("DEC") in a prominent place clearly visible to the public.

DECs and advisory reports are valid for 12 months and seven years respectively.

Air Conditioning Systems

Persons in control of air conditioning systems with an effective rated output of more than 12kW must ensure that the system is inspected at least every five years.

In the case of systems put into service after 1 January 2008, the first inspection must take place within five years of it being put into service. In the case of systems put into service before 1 January 2008, the first inspection must take place before:

  • 4 January 2009 (for systems with an effective rated output of more than 250kW); or

  • 4 January 2011 (for systems with an effective rated output of between 12kW and 250kW)

Role Of Energy Assessors

EPCs (and recommendation reports), DECs (and advisory reports) and air conditioning system inspections are all prepared by energy assessors. These must be members of an accreditation scheme approved by the Secretary of State. Energy assessors have to communicate all certificates and reports to the Secretary of State, who keeps a register of them.

Post Script

Generally speaking, the requirements of the new Regulations do not require buildings to be energy efficient. They merely seek to ensure that information on building energy efficiency, and ways to improve it, is recorded and disclosed at certain trigger points.

However, other developments may well have the effect of encouraging energy efficiency improvements to be made sooner rather than later. The Government has recently announced a proposal for the introduction of a system - the "carbon reduction commitment" - that will target private and public sector organisations with an electricity bill of over £500,000 per year. Essentially, these organisations will be penalised for not meeting energy usage targets. In time, this will provide every incentive for them to improve their buildings' energy efficiency.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.