Businesses feel the heat with energy performance certificates

Businesses must act now to get an Energy Performance Certificate (EPC) for their building despite the deadline extension, say legal experts.

The EPC gives buildings a ‘fridge rating’, graded A-G, showing their energy efficiency. The original deadline was 1st October but a shortage of qualified Commercial Energy Assessors (CEA) means businesses now have until 1st January to obtain the certificate, unless the building is sold or rented before this date.

However, lawyers are urging businesses not to delay as the certificates can take weeks to organise.

Calire Egerton, partner at law firm Lewis Hymanson Small, said:

“Businesses may be tempted to delay arranging an EPC due to the extended deadline but this is a mistake. The low number of assessors means there are long waiting lists for assessments. Too many business owners don’t realise they are far more time and labour intensive than residential certificates.”

Nick Trowell, head of real estate at law firm Heatons LLP said:

“The onus is on the owner or lease holder of the property to meet the criteria of this new law and have all the documentation in place. There is no excuse for claiming ignorance as organisations need evidence to prove their energy saving credentials.

“Businesses also need to think about the potential damage to the value of a building if they don’t prepare their documentation in time. Failure to provide a valid EPC will not only damage their green credentials and risk negative publicity, but will hit the bank balance hard.”

Valid for ten years, an EPC must be produced when a building is to be sold or rented out and it should be supported by a report recommending how energy efficiency might be improved.

Businesses risk facing a financial penalty if they do not get a certificate. In most cases the fine will be 12.5 per cent of the rateable value of the building, with a minimum penalty of £500 and a maximum of £5,000.

“In the future it is possible that buildings with a poor energy rating may suffer a reduction in value or be subject to an increase in business rates, in addition to the higher energy costs of running the building. It is also possible that the implementation of energy saving recommendations may become compulsory.

“Buyers should take careful account of the energy performance rating of any building and any energy saving recommendations when thinking about investing,” Trowell added.