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New legislation coming into force 6th April

From 6 April 2008 it will be necessary for commercial buildings over 10,000 m² to produce an Energy Performance Certificate (EPC) when sold or let.

From 1 July 2008 all commercial buildings over 2,500 m² will need an EPC. From 1 October 2008 all remaining commercial buildings will need an EPC when sold or let, and all buildings let to any government organisation (schools, fire stations, libraries, offices, etc) will also need a Display Energy Certificate. 

The EPC will be generated by a Simplified Building Energy Model (SBEM) for most buildings, although the SBEM and sufficient assessors are not yet in place.

The building will need to be divided up into assessable zones on the plan. Each zone will need an assessment of its construction details such as the heating system, lighting, energy insulation and information on the mechanical and electrical engineering plant. 

The assessment will feature a calculation of the actual kgCO2/M², compared to the potential rating of that type of building.

The Government has recently announced transitional arrangements as the scheme is introduced.  Buildings marketed before 6th April or 1st October and then continually marketed from then on will remain exempt until 1 October. 

Exemptions will apply if buildings are taken off the market but put back on the market within 28 days following withdrawal or rejection of any previously accepted offer.  However, buildings marketed on or after 7 April or 2 July will need an EPC.

EPCs will not be required for lease renewals or extensions or lease surrenders, but will be required where a tenant leases one unit in a multi-let building. They will not be needed where there is a shell & core building to be let or sold, which does not yet have a gas or power supply.

It is important to note that the conversion of an existing building may be liable as it will be deemed a "new building".

If there is no EPC in place at the completion of a new building, it may be difficult to obtain a Building Regulation Certificate.

To enforce the scheme, fines will be applied.  The minimum fine is £500 which could rise to £5,000 for not producing an EPC on time.

For more information read the Government’s guidance.

Author: MBL

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