Commercial EPCs and DECs

The Energy Performance Certificate, or EPC, provides energy efficiency A-G ratings and recommendations for improvement. The ratings - similar to those found on products such as fridges - are standard so the energy efficiency of one building can easily be compared with another building of a similar type.

EPCs were first introduced for the marketed sale of domestic homes, as part of the Home Information Pack. If you are buying or selling a home it is now law to have a certificate. This also applies to newly built homes and large commercial properties.

Acting on an EPC is important to cut energy consumption, save money on bills and help to safeguard the environment. EPCS are produced by accredited energy assessors.

Why the need for the legislation?

Commercial properties and public buildings currently account for nearly 25% of the UK's carbon emissions, contributing to global climate change. The way in which we light, heat and use buildings all contribute to this. Even small improvements to the energy performance and the way we use our buildings could have a significant effect on our fuel bills and carbon emissions.

What is a DEC? (Display Energy Certificates)

Since October 2008 Display Energy Certificates (DECs) are required for larger public buildings enabling everyone to see how energy efficient our public buildings are.

The DEC should be displayed at all times in a prominent place clearly visible to the public - and they are accompanied by an Advisory Report that lists cost effective measures to improve the energy rating of a building. A DEC is valid for one year and the Advisory Report is valid for seven years.

What does an assessment for an EPC involve?

An accredited energy assessor needs to visit a property to conduct an energy assessment for an existing building. During the assessment they collect information on the property, which includes details of its dimensions, construction and heating/hot water provision.

The time taken to perform an energy assessment will vary according to the size and nature of the property. Because of the wide variation of commercial buildings, any form of 'average time' would not be meaningful.

This information is fed into the approved software programme which produces the EPC and recommendation report. The energy assessor will then record the certificate onto a national register via his or her accreditation scheme and provide the seller, or prospective landlord with a copy. The certificate is then ready to be given to new building owners or made available to prospective buyers or tenants.

What are the obligations for agents, landlords?

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% or 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. A formula is used as the costs of producing an EPC for non-dwellings are expected to vary according to the size, complexity and use of the building. The EPC will still be required.