What is a Commercial or Non Domestic Energy Performance Certificate?

If you are offering any commercial space for sale or let (this includes sub-letting) you will need to make an EPC available that reflects the energy performance of the space on offer. An 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 or in any event before entering into a contract to sell or let. As a seller or landlord you are responsible for ensuring there is an EPC available for the space being sold or let even if an agent or another service organisation is acting on your behalf. You should therefore ensure any agents acting on your behalf are complying with the Regulations.

What is an Energy Performance Certificate?

The Commercial or Non Domestic Energy Performance Certificate looks similar to the Domestic EPC certificates but contains less information on recommended improvements. It tells potential buyers and tenants about the energy performance of a building so they can consider energy efficiency as part of their investment or business decision to buy or occupy that building. All EPCs come with a recommendation report which includes advice and suggestions on improvements you could make to save money and energy. The definition of an eligible building is..

“A roofed construction having walls, for which energy is used to condition the indoor climate, and a reference to a building includes a reference to a part of a building which has been designed or altered to be used separately”.

For a building to fall within the requirement for an EPC it must:

• Have a roof and walls
• Use energy to condition the indoor climate

How long are EPCs valid for?

An EPC for a commercial building is valid for 10 years, or until a newer EPC is prepared. During this period the EPC may be made available to buyers or new tenants. If any major changes are made to the building the EPC will need to be reissued.

How do I know whether my building requires an EPC?

If you have a building (with a roof and walls) that uses energy to condition the indoor climate then you will require an EPC when it is sold or let. Parts of a building designed or altered to be used as separate accommodation may require their own EPC. The sale and let of commercial buildings can be complex with floors let to different tenants, and with a mixture of retail, office and residential accommodation.

The EPC required for any space you offer for sale or let must reflect the energy performance of the accommodation on offer.

Selling or letting part of a 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 (or make available) an EPC for the whole building. This EPC may then be made available for any part of the building subsequently offered for sale or let. It is also possible to prepare (or make available) an EPC for a part designed or altered to be used separately, if required.

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. The EPC should reflect the services in those part(s) being offered for sale or let. A separate EPC should be provided for any common areas that exist solely or mainly for access to the part.

Selling or letting a building as a whole: You can prepare (or make available) an EPC for the whole building, even if that building has parts designed or altered to be used separately with separate heat-ing systems. If the building has a common heating system, the EPC may subsequently be used for any part of the building offered for sale or let.

Residential accommodation: Any separate residential accommodation that is self-contained will require its own EPC (using SAP or RdSAP as appropriate). Residential space that can only be ac-cessed via commercial premises (i.e. a house with a shop in a downstairs room or a shop with ac-commodation where the access is through the shop) will be assessed with the commercial premises as a single building (where SBEM is more appropriate).

Modifications to a building: If a building is modified to have more or less parts that are designed or altered to be used separately and the modification includes the provision or extension of heating, hot water, air conditioning or mechanical ventilation then an EPC for the building must be provided on completion of the work.

Further guidance on whether buildings require an EPC can be found in “a guide to energy performance certificates for the construction, sale and let of non-dwellings” which can be downloaded from the Communities and Local Government website.

Are there any circumstances where I don’t need an EPC?

EPCs are not required before the construction of a building is completed. Nor are they required on the sale, rent or construction of:

• Places of worship;
• Temporary buildings with a planned time of use less than 2 years;
• Stand alone 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.

As the purpose of EPCs is to enable potential buyers or tenants to consider energy performance of a building as part of their investment, transactions which do not involve a new owner or tenant may not require an EPC. Examples might include:

• Lease renewals or extensions to existing tenants
• Compulsory purchase orders
• Lease surrenders.

What happens if I do not have an 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. 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.

The Survey Process

The EPC is produced using the Simplified Building Energy Model (SBEM) software. We attend your building and make measurements of the internal geometry and construction methods, We survey and record the fixed building services such as: heating, cooling, and lighting and also makes a note of the occupancy use of the different areas or zones within the building. This allows the software to build up a picture of the buildings and produce an Asset Rating and guide recommendations for energy improvement in the property.

The Recommendations Report which accompanies the EPC is produced from generic assumptions based on inputted data. We would advise on practicalities of energy improvement within your property and the assumptions made. Finally the report is lodged on the Scottish EPC register and is available to any interested parties.

If you require further information please contact us.

Copyright: AYRSHIRE ENERGY REPORTS 2014

Mailen House, Low Milton Farm, Maybole, South Ayrshire, KA19 8EG

Tel 01655 882561 Mobile 0794 1387211

Web www.ayshireenergyreports.co.uk Email:ayrshireenergy@btinternet.com