GN 4.2: Energy performance standards

Guidance Note purpose 

The purpose of this Guidance Note is to provide information for asset managers, property managers and facilities managers in relation to the requirements of Energy Performance Certificates and Display Energy Certificates.  Minimum Energy Efficiency Standards are also described as an additional reference. 

Context 

Energy Performance Certificates (EPC) and Display Energy Certificates (DEC) 

Both EPCs and DECs provide a rating of a property’s energy efficiency through a grade range from A (best) to G (worst). The ratings are intended to allow owners and occupiers to compare the energy performance of different buildings or properties.  

Whilst EPCs and DECs have a similar purpose, they rely on different inputs to calculate the energy rating. In general terms, an EPC is based on a theoretical model of the building, and a DEC is based on actual consumption data.  

An EPC is required when a building is constructed, majorly renovated or marketed for sale or letting.   In order to be valid, the certificate and recommendation report must be lodged with the online registry.  

There are some buildings which are exempt from requiring an EPC, these include:  

  • Places of worship. 
  • Temporary Buildings. 
  • Stand-alone buildings with a floor area of less that 50 sq. m. 
  • Industrial and agricultural buildings with low energy requirements. 
  • Protected buildings where compliance with energy efficiency requirements would unacceptably alter their character or appearance. 
  • Buildings that are suitable for demolition. 

DECs are required in England, Wales and Northern Ireland for all public buildings with a total useful floor area of over 250 sq m, that are occupied in whole or part by public authorities, and are frequently visited by the public. Although private organisations are not required to have DECs, they can be obtained voluntarily.  

  • For buildings over 1,000 sq.m, the current DEC, along with the two previous year’s ratings, must be prominently displayed.  
  • In Scotland, EPCs are generally required instead of DECs. However, a DEC can be used as a method of deferring any required Section 63 Action Plan improvements in relation to The Assessment of Energy Performance of Non-domestic Buildings (Scotland) Regulations 2016.  
  • In order to be valid, the DEC and Advisory Report must be lodged with the online registry. This is also true in Scotland, however there is a separate Scottish EPC Register.  

Minimum Energy Efficiency Standards (MEES)

MEES were introduced by the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015.

These regulations introduced a minimum required EPC rating of an E for rented property in England and Wales.

Why this is important 

The desired outcomes of EPCs and DECs are broadly similar, but subtly different. 

  • A DEC is intended to raise public awareness of energy use and to inform visitors to public buildings about the energy use of the building.  
  • An EPC is intended to allow the energy performance of different buildings to be compared to allow tenants, purchasers, building users to make informed choices.  

Stakeholders may often find a DEC more meaningful than an EPC as it measures performance based on actual energy consumption rather than theoretical performance, and therefore provides information on how efficiently a building is currently being operated.  

There are a range of penalties for non-compliance with the requirements of EPCs and DECs.  As of March 2021, these included: 

  • The penalty for failing to make an EPC available to a prospective buyer or tenant when selling or letting a commercial property is 12.5% of the rateable value of the building, with a minimum fine of £500 and a maximum of £5,000. 
  • Failing to have a DEC include:  
    • £500 for failing to display a DEC at all times in a prominent place clearly visible to the public, and 
    • £1,000 for failing to possess or have in control a valid advisory report. 

Responsibilities & Interests

The table below summarises the key activities associated with energy performance standards, and highlights where asset managers, property managers and facilities managers are likely to have a responsibility or specific interest. 

  • AM - Asset Manager
  • PM - Property Manager
  • FM - Facilities Manager

Step 1: Understand whether an EPC or DEC is required  

Stakeholder:

Step 2: Clarify responsibilities for EPCs and DECs 

Stakeholder:

Step 3: Identify a registered EPC or DEC assessor 

Stakeholder:

Step 4a: Collate the information required for a DEC 

Stakeholder:

Step 4b: Collate the information required for a DEC 

Stakeholder:

Step 5: Host site visit by assessor 

Stakeholder:

Step 6: Preparation and registration of either the DEC and advisory report or the EPC and recommendation report 

Stakeholder:

Step 7: Display and retention of DEC and advisory report 

Stakeholder:

Show less

How to

Related Guidance Notes 

The following Guidance Notes contain related information: 

Additional Resources

Solutions Scrapbook

Workspace’s Sustainable Refurbishment at The Record Hall

During the refurbishment and redevelopment of The Record Hall, Workspace made BREEAM Excellent a priority from the outset, exceeding planning requirements. The whole project team worked collaboratively to successfully embed sustainability into every aspect of the scheme and create a location of choice for occupiers.

Read the case study here.

Energy Centre at Spring Mews

CLS Holdings’ aim at Spring Mews was to design an energy centre that had the flexibility to supply different demands to mixed-use requirements in the most efficient way possible, while exceeding planning requirements on Part L 2010 Building Regulations. To achieve this, CLS appointed a Swedish energy consultant, EGMA Systems, which had previously supported the firm on a similar system at Vänersborg in Sweden in 2001. CLS wanted to build on the lessons and success there, and so EGMA Systems designed the energy centre at Spring Mews in partnership with Hoare Lea.

Read the case study here.

CLS Holdings De-risks Entire UK Portfolio for MEES

CLS Holdings has fully mitigated its UK portfolio against the Government’s upcoming Minimum Energy Efficiency Standards (MEES), which come into force from 2018. The CLS Holdings Sustainability team worked in partnership with EPC assessors to review properties at risk, providing assessors with complete information, giving them full access to properties and upgrading equipment where needed. All UK properties now have Energy Performance Certificate (EPC) ratings of D or above.

Read the case study here.

Page 18 of 70