| Commercial Energy Performance Certificates (Commercial EPCs) |
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What are they and who needs one? The Kyoto Protocol became a legally binding treaty on 16 February 2005. It is an international agreement setting targets for industrialised nations to cut green house emissions - to which the EU is a party. The Protocol has found its way into domestic UK Law in the form of The Energy Performance of Buildings (Certificates and Inspections) (England and Wales) Regulations 2007 as amended, and The Home Information Pack (No 2) Regulations 2007. An Energy Performance Certificate (“EPC”) is at its simplest, a document setting out a building’s energy rating, much like you have on electrical appliances like fridges and washing machines. It is accompanied by a recommendation report suggesting ways in which to improve the energy efficiency of a building and is required whenever a property is constructed, sold or let. - The need for an Energy Performance Certificate (‘EPC’) has been effective, for certain residential buildings since 2 July 2007 and now applies across the board (since 14 December 2007). - For commercial buildings the EPC was phased in according to size - from 6 April 2008 applying to all commercial buildings of more than 10,000m2; from 1 July 2008 applying to commercial buildings of more than 2,500m2; and from 01 October 2008 it now applies to all commercial buildings. (There was some confusion over whether the Regulations meant ‘m2’ or ‘square metres’ with telephone enquiries of the relevant authority doing nothing to help clarify – however, as size is no longer the determining factor one hopes that this has become academic!) The obligation to provide an EPC lies with the party constructing, selling or letting the property. It must be provided at the earliest opportunity - usually meaning at the point of first marketing or viewing and in any event, before contracts are exchanged. Once produced, a commercial EPC is generally valid for 10 years. There are a number of exemptions but the rules are fairly complicated and it would be inappropriate to deal with this in an article of this nature. One should seek further advice on the issue of whether any exemption may apply to their specific situation. Other points to bear in mind: 1. An EPC may even be required where a building has been modified. 2. There are certain transactions which are exempt as they are not classed as a sale or let and therefore will not act as a triggering event (e.g. lease renewals or extensions, lease surrenders, CPO’s, etc) 3. Costs of producing an EPC are estimated to be approximately £0.50 per square metre, though likely to be greater where more complex premises are involved. 4. The EPC regulations will be enforced by the local weights & measures authorities (i.e trading standards) and breaches may result in a penalty charge, at 12.5% of the rateable value of the Property (with a maximum of £5,000) – although in certain circumstances a defence may be available. 5. Every EPC must be registered with a national database, to be administered by Landmark Information Group Limited. This is only a brief summary of what an EPC is and when it is required. This summary does not contain full details of the relevant laws and regulations and does not constitute legal advice. In the event of any queries, where you require legal advice and assistance, please contact either : Ajmal Hussain (Bishop's Stortford): Tel: 01279 506421 or e-mail John O’Connor (London) : Tel: 020 7821 8211 or e-mail
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