From 1 October 2008 all commercial buildings on the market for sale or let require an EPC to be in place. Newly constructed buildings require an EPC before completion can take place. From April 2012 updated Regulations require that an EPC be in place from the first day the building is marketed (or within 7 days of that date)
It is illegal to market a commercial property for sale or let without a commercial EPC.
What is a Commercial Energy Performance Certificate (EPC)?
The commercial Energy Performance Certificate (EPC) will tell you how energy efficient the commercial property is on a scale of A-G, with A being the most efficient. The certificate will also compare the building to a stock average and new built rating for that building type.
The certificate covers all types of buildings from shops to small offices, industrial units and large commercial buildings such as train stations and airports. Building Control is responsible for enforcing these changes in the newly built properties and it’s the Trading Standards department responsibility to enforce certificates on existing buildings. The commercial EPC is combined with a recommendation report on how the property’s energy efficiency can be improved. Commercial EPC’s are valid for a 10 year period.
The Law for a Commercial EPC
Property agents will ask whether a commercial EPC is provided before they market a property, as of April 2012 a Commercial Agent has a responsibility by law to ensure an EPC is in place at point of marketing; they may refuse to market the property if an EPC has not been commissioned. The purchasers/prospective leaseholders solicitor will also certainly ask to see the commercial EPC before contracts can be exchanged.
It is now mandatory that a commercial EPC is in place prior to marketing a commercial property, and newly constructed commercial buildings are also required to have an EPC. Non-compliance with commercial EPC legislation will result in a penalty. The penalty is of up to 12.5% of the rateable value of the property, with a minimum of £500 and a maximum of £5,000. This is in addition to the cost of a compliant commercial EPC.
Commercial Property Exemptions
Under current commercial EPC legislation a commercial EPC is not required on the following exempt premises: On lease renewals or extensions that were in place prior to 1st October, 2008
Places of worship
Stand alone buildings less than 50 square meters
Properties with consent to be demolished within a 2 year period.
Industrial, agricultural or warehousing with low energy demand (no fixed heating)