What is a Commercial Energy Performance Certificate and why do I need one?   

An Energy Performance Certificate (EPC) will show the energy rating of a building basing it on the probable performance of the building and its services. The energy rating shown on the EPC reveals the regular energy performance of the building against a standard that can be used to compare buildings of the same category.

A Commercial EPC in London is a legal requirement for the trading of a property, and the awarding of a new or existing rent. This shall include transfers within a company, sales made by liquidators, and leasebacks.

Trigger events for a Commercial EPC:

• April 6, 2008 – for buildings that have a total gross floor area of more than 10,000 m2.
• July 1, 2009 – for buildings that have a total gross floor area of more than 2,500 m2.
• October 1, 2008 – for the rest of the buildings that are not categorized as homes.

Who needs a Commercial EPC

• The vendor of the building or the tenant if the building is rented.
• The potential landlord of the building for rent or the tenant in case of sublease.
• The person doing the works on the building whether it is newly built or just alteration work.

The Commercial EPC must be provided by the relevant person without cost to the potential buyers or tenants. Nevertheless, the owner of the property who arranged an EPC for the entire building may recover the expenses by means of the service charge.

A Commercial EPC must be provided at the earliest opportunity

• Prior to marketing the building.
• Before it can be viewed by potential buyers or tenants.
• Before accomplishing a sales contract, rent or assignment agreements.

Properties that are exempted from Commercial EPCs

• Detached or stand-alone buildings that have a total gross floor area of under 50 m2. However, a small cabin will not be exempt if it is part of a bigger building.
• Buildings that are utilized for worship.
• Temporary buildings that will be used for under 2 years.
• Agricultural buildings, industrial locations such as warehouses with minimal energy consumption.
• A Building that is to be demolished by the potential buyer.

Validity period for a Commercial EPC

A Commercial EPC is normally valid for 10 years. And you do not need a new Commercial EPC each time you put your property on sale or rent for as long as you have a valid EPC.

Penalties for non-compliance

• The maximum penalty for a building without a Commercial EPC is £5,000.
• £200 is the penalty for failing to present an EPC within 7 days when demanded by proper authorities.

Why get a Commercial EPC?

One of the purposes of a Commercial EPC is to inform the landlord of the property and the prospective buyer or tenant about the energy efficiency rating of the building in question. This permits the prospective buyer or tenant to check the present carbon consumption of the building and how they can save if the recommended measures are implemented.

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