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Minimum Energy Efficiency Standards – re-writing the alphabet

07Aug2014

Minimum Energy Efficiency Standards – re-writing the alphabet

Forget apples, balloons, cats and dogs, if you’re a landlord it’s time for a new alphabet mnemonic: “A” for April “B” for building, “C” for compliance, “D” for deadline and “E” is definitely no longer for elephant.

Why?

On 1st April 2018, the new Minimum Energy Efficiency Standard Regulations come into force. They will affect all buildings that are currently required by the Energy Performance of Buildings (England and Wales) 2012 to have an Energy Performance Certificate (EPC). In order to be compliant by this deadline, landlords will have to show that their buildings have an EPC rating no lower than E.

Where are you at?

Statistics show that 18% of the buildings in the non-domestic private sector currently have EPC ratings of F and G. If your building is in this category it is worth beginning to consider improvements, however before that, if your building was given a rating of F or G before 2010, it may be worth recommissioning your EPCs. M & G Real Estate did so and saw the the proportion of their assets below E rating fall from 6% to 4% by rental value upon re-commissioning found.

If F or G ratings are upheld, it will be time to invest in improvements.

The government is anxious that landlords face no upfront cost and to ensure the Golden Rule is upheld, whereby repayments for improvements, including any interest charges, must be the same or less than the expected energy bill savings (in the first year). For non-domestic properties Green deal finance is still being considered but similar competitor schemes are expected to emerge and landlords with F and G rated properties will probably be required to have their properties assessed and carry out suggested improvements that follow the Golden rule either independently or making use of finance offered.

The bigger picture?

One of the UK’s legislative targets for the year 2050 is to have carbon dioxide emissions close to zero, which will require the EPC ratings of UK buildings to be close to A as well, so the Minimum Energy Efficiency Standards will be the beginning of the road in terms of eventual requirements.

In the end good energy management practice and infrastructure will become crucial in staying ahead of the legislation and protecting the landlord’s right to let property. The ability to harness accurate knowledge of how energy is being used (or wasted!) will become invaluable in making informed decisions on how best to improve the efficiency of the building.

What next?

Building Sustainability’s smart sub-metering allows energy-use data to be transmitted to a server and our Workplace Footprint Planner software interface allows this data to be accessed in a format that lends itself to analysis, helping you to make informed decisions on what improvements would be best to make on your path to efficiency… “E” for efficiency.”

  • 7 Aug, 2014
  • Building Sustainability

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