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Commercial EPC

What is a Commercial EPC?

A Commercial EPC records how energy efficient a property is as a building and provides A-G ratings. These are similar to the labels now provided with domestic appliances such as washing machines and  refrigerators

Commercial EPCs are produced using standard methods and assumptions about energy usage so that the energy efficiency of one building can easily be compared with another. This allows prospective buyers, tenants, owners, occupiers and purchasers to see information on the energy efficiency and carbon emissions from their building so they can consider energy efficiency and fuel costs as part of their investment.

A Commercial EPC is always accompanied by a recommendation report that lists cost effective and other measures (such as low and zero carbon generating systems) to improve the energy rating. The certificate is important because nearly 50 per cent of the UK's energy consumption and carbon emissions arise from the way our buildings are lit, heated and used. Even comparatively minor changes in energy performance and the way we use each building will have a significant effect in reducing energy consumption.

Energy Performance Certificates (EPC's) are the Government's chosen way of complying with the Energy Performance of Building Directive (EPBD).

With complete knowledge of the requirements of  Commercial Energy Performance Certificate (EPC) inspections, we are not only able to deliver the EPC inspection services, but also provide advice to our clients on appropriate actions when considering the investment return or speeding up the disposal.

Are there any circumstances where I don't need a Commercial EPC?

EPCs are not required on construction, sale or rent for:

  • Places of worship
  • Temporary buildings with a planned time of use less than two years
  • Stand alone (entirely detached) buildings with a total useful floor area of less than 50m2 that are not dwellings
  • Industrial sites, workshops and non-residential agricultural buildings with low energy demand
  • On sale or rent for buildings due to be demolished

When do I provide a Commercial EPC?

A Commercial EPC should be provided to a prospective buyer or tenant at the earliest opportunity and no later than when a viewing is conducted or when written information is provided about the building. It must be provided before entering into a contract to sell or let. Where a building is constructed the EPC must be produced no later than 5 days after the construction work has been completed

An EPC is also required in specific circumstances when a building is modified structurally or in relation to fixed services.

How long is an EPC valid for?

EPC's are valid for up to 10 years, unless a newer EPC is produced for the property, in which case only the latter is valid.

What if I have a building that is subdivided into separate parts?

Selling or letting a building as a whole: You need an EPC for the whole building. If that building has parts designed or altered to be used separately with separate heating systems then it is also permissible to provide EPCs for each of the individual parts, plus an EPC for any communal areas.

Selling of letting part of building, where the building has a common heating system: If a building has a common heating system, then the seller or prospective landlord can prepare an EPC for the whole building or for the individual part designed or altered to be used separately (in which case Communal areas are ignored). 
Buildings with separate parts and separate heating systems: An EPC should be prepared (or made available) for each part of a building that is being offered separately for sale or let.  If selling or letting the whole building it is permissible to provide EPCs for each of the individual parts plus an EPC for the conditioned communal areas or provide one EPC for the whole building.

Implications of not having a Commercial Energy Performance Certificate?

The penalty for failing to make an EPC available to any prospective buyer or tenant when selling or letting non-dwellings is fixed, in most cases, at 12.5% of the rateable value of the building, subject to a minimum penalty of £500 and a maximum of £5,000. There is a default penalty of £750 where the formula cannot be applied. The EPC will still be required.

 

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