Energy Performance Certificates - Frequently Asked Questions

• What is the background?
• How does the UK rate the energy performance of buildings?
• What is a DEC?
• What is an EPC?
• Who is responsible for obtaining an EPC?
• Are any buildings exempt from providing EPCs?
• Will the implementation of EPBD be different between homes and commercial buildings?
• How much will an EPC cost?
• Does rented accomodation require an EPC?
• Is there an average amount of time it takes to conduct an energy assessment?
• What will the certificate specify?
• What will the EPC not specify?
• Do the recommendations on the certificate have to be implemented?
• Who issues an EPC?
  

What is the background?
Buildings are major consumers of energy, accounting for approximately 40% of EU energy consumption. Research has shown that by improving energy efficiency carbon emissions from buildings could be reduced by 20%. This will help the EU to meet its climate change objectives under the Kyoto Protocol commitments as well as improve the energy performance of new and existing buildings. In May 2001, the European Commission published the proposed Energy Performance of Buildings Directive (EPBD) and in November 2002, the Directive was approved and became European Law on 5th January 2003.

The principal objectives of the Directive are to:
• promote improvement in the energy performance of buildings within the EU through cost effective measures, and
• promote the convergence of building standards towards those of Member States which already have ambitious levels.

Measures include:
• methodology for calculating the energy performance of buildings
• application of performance standards on new and existing buildings
• certification schemes for all buildings, and
• regular inspection and assessment of boilers/heating, and cooling installations.

How does the UK rate the energy performance of buildings?
Energy certificates rate the energy performance of a building. The idea is familiar with the public in the form of energy labels which are exhibited for the sale of white goods, such as fridges. Two types of energy certificate are required for separate situations: Energy Performance Certificates (EPCs) for all buildings when they are constructed, sold or rented out and Display Energy Certificates (DECs) which need to be displayed at all times for large, public buildings occupied by public authorities or institutions providing a public service.

The energy labels will be based on energy emissions per square metre, divided by a value typical for that building. The resultant numerical rating scale starts at 0 (for zero carbon developments) and moves upwards. A rating of 100 is considered to be a typical benchmark. The numerical scale is translated to a Grade A to G. Grade A is very effiicent (rating 0-25) and Grade G is very inefficient (rating over 150).

What is a DEC?
DECs are only required for buildings that are occupied by a public authority or an institution providing a public service with a total area greater than 1,000m². They allow the public to see the energy efficiency of a building by highlighting the actual energy usage and the Operational Rating. This is based on the actual carbon dioxide emissions for all uses as recorded by meters e.g. gas and electricity. The DEC must be clearly displayed at all times in a prominent place that is clearly visible to the public. An Advisory report is produced alongside the DEC and lists cost effective measures to improve the energy rating of the building.

DECs come into effect from 1st October 2008 and are valid for one year (it must be renewed every 12 months); the Advisory Report is valid for 7 years. In future this requirement might be extended to include private sector buildings occupied by commercial organisations where large numbers of the public regularly visit the building. This would be subject to separate legislation.

What is an EPC?
An EPC records the energy efficiency of a property. They are required for all non-domestic buildings on construction, sale or letting (not lease renewals).

Energy efficiencies between buildings can easily be compared with other buildings of the same type. This is due to the use of standard methods and allows prospective buyers, tenants, owners, occupiers and purchasers to analyse information on energy efficiency, fuel costs and carbon emissions to inform their investment decision. The values are based on predicted carbon dioxide emissions from normal building services, in standard use.

An EPC must be accompanied with a recommendation report which lists cost effective and other measures (low and zero carbon generating systems) to improve the energy rating. Information is also provided detailing what rating that could be achieved if all the recommendations were implemented. The EPC is valid for up to 10 years.

The EPC is registered on a national database, so that all potential lessees or purchasers can review ratings. The website is managed for CLG by Landmark Information Group Ltd: www.ndepcregister.com

Who is responsible for obtaining an EPC?
• New Construction – it is the contractors’ responsibility to provide the owner with both the EPC and Building Regulations Part L 2 certificate.
• Sale – it is the sellers responsibility to provide the EPC for prospective buyers
• Letting – it is the lessor’s responsibility to provide the EPC for new tenants

Are any buildings exempt from providing EPCs?
• Places of worship
• Stand-alone buildings of less than 50 sq m (except for dwellings)
• Temporary buildings with a planned time of use of 2 years or less
• Buildings with low energy demand (e.g. barns)
• Select buildings that are to be demolished
• Off-plan sales or lettings that occur before the construction has been completed

Will the implementation of EPBD be different between homes and commercial buildings?
The EPBD makes no differentation between homes and commercial buildings. However, differences do exist in relation to the build and use of these properties, and this must be taken into account during the certification processes. A detailed methodolgy is currently in place for providing EPC’s as part of Home Information Packs and it is likely this model will be applied in other sectors such as private rented dwellings, social housing and commercial buildings.

How much will an EPC cost?
Market and not government will set the price for providing an EPC. The price will reflect the time spent at the property which will be in relation to the buildings size, type, location and complexity.

Does rented accomodation require an EPC?
All buildings whether constructed, sold or rented are required to provide an EPC under EU rules.

Is there an average amount of time it takes to conduct an energy assessment?
There is no set time allocation for undertaking an energy assessment; it will vary according to the size and nature of the building. Due to the different complexities of buildings no average times can be given.

What will the certificate specify?
The certificate provides clear information on the energy performance of the property. It will recommend cost effective solutions for improving the building’s energy performance. The EPC has four elements:

1. an estimate of predicted carbon dioxide emissions per square metre. The emissions will cover the energy used for all uses i.e. heating, hot water, fans, pumps, cooling and lights

2. the rating of the building, known as the Asset Rating (AR). AR values will also be provided for benchmarking purposes of: a typical building, a building compliant with 2006 Part L, the predicted AR of the building being assessed, if all the recommendations were implemented

3. details of the certificate number, assessor name and information on accreditation, and

4. information on how to complain about an assessment or check its validity.

What will the EPC not specify?
The EPC does not predict the cost of future fuel bills and will not provide advice on which suppliers can undertake work to improve the energy efficiency.

Do the recommendations on the certificate have to be implemented?
The recommendations listed on the certificate are for consideration purposes only. They do not have to be carried out and no penalties are awarded if they are not implemented.

Who issues an EPC?
Only individuals that are members of an approved accreditation scheme with a nationally recognised qualification are able to issue an EPC e.g. Licensed Home Inspectors or Domestic Energy Assessors. The accreditation scheme must provide training, accreditation, support and quality checks.