Commercial Epc: April 2018 Changes Explained
What is a commercial EPC?
A commercial energy performance certificate – or EPC – tells you how energy efficient a commercial property is, graded on a scale of A – G for CO2 emissions. The most efficient properties are in band A, with the least efficient in band G. More energy efficient properties benefit the environment, as carbon dioxide emissions are lower than in those properties which are less efficient.
Owners of commercial property are required to provide a valid EPC when they sell or lease a premises.
How long is a commercial EPC valid for?
Commercial EPCs are valid for a period of ten years.
How much does a commercial EPC cost?
The cost of a commercial EPC will depend on the size of the specific property, with current fees set at:
|Size of commercial property||EPC Cost|
|Up to 50m2||£154.80 inc VAT|
|51m2 to 250m2||£238.80 inc VAT|
|251m2 to 500m2||£298.80 inc VAT|
|501m2 to 750m2||£358.80 inc VAT|
|751m2 to 1000m2||£418.80 inc VAT|
|1001m2 to 1250m2||£478.80 inc VAT|
|1251m2 to 1500m2||£538.80 inc VAT|
|1501m2 to 1750m2||£598.80 inc VAT|
|1751m2 to 2000m2||£658.80 inc VAT|
|2001m2 to 2250m2||£718.80 inc VAT|
|2251m2 to 2500m2||£778.80 inc VAT|
|2501m2 to 3000m2||£838.80 inc VAT|
|3001m2 to 3500m2||£898.80 inc VAT|
|3500m2 to 4000m2||£958.80 inc VAT|
|4001m2 to 4500m2||£1018.80 inc VAT|
|4501m2 to 5000m2||£1078.80 inc VAT|
What do the new commercial EPC regulations mean for me?
The new EPC regulations mean from 1st April 2018 it is now illegal to lease or let a commercial property in the UK with an EPC rating of F or G, under Minimum Energy Efficiency Standards (MEES). These new minimum standards were released by the Department of Energy and Climate Change on 22nd July 2014 and confirmed on 5th February 2015.
The regulations state that the minimum energy efficiency standard a commercial – or non-domestic – property must meet is a grade E. The standards are intended to assist the UK government in achieving the obligations set out in the Energy Act 2011, specifically to improve the energy efficiency of property in the commercial sector.
Between 2008 and 2015, 35% of commercial buildings in the UK with an EPC certificate were rated E, F or G, suggesting a significant percentage of non-domestic property could be affected by the new regulations. This could cause issues when you are letting a commercial property, or alternatively seeking to renew a lease, as a property must be improved to at least an E rating before it can be rented to commercial tenants.
Are all commercial properties included in the new regulations?
All non-domestic property classified in the Energy Act 2011 – properties let on a tenancy which are not residential dwellings – are governed by the MEES regulations if they sit within the usage classes of A1 – D2.
The only exemptions from MEES are properties which are not required to adhere to EPC regulations.
What are the next steps?
If any of the commercial properties in your portfolio fall below the required energy efficiency standard of grade E, you should consult a specialist energy assessor in your local area who will be able to provide expert advice on how to improve the efficiency of the property. They can also provide an energy performance certificate if you require one.