ENERGY PERFORMANCE CERTIFICATES IN SCOTLAND –
WHAT YOU NEED TO KNOW
What is an energy performance certificate?
An energy performance certificate (''EPC'') certifies a property's energy efficiency based on its carbon emissions and grades it from band A (good) to band G (poor). The certificate looks similar to the certificate displayed on a new fridge or freezer, and is prepared by an energy assessor using approved software packages.
Key dates
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1 MAY 2007 - a certificate is required for all new commercial buildings unless the developer obtained a building warrant for the building prior to 1 May 2007. This requirement was introduced by the Building (Scotland) Amendment Regulations 2006 and is already in force.
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4 JANUARY 2009 - a certificate will be required for all existing commercial buildings if sold or leased, in whole or in part. This requirement was brought in by the Energy Performance of Buildings (Scotland) Regulations 2008.
Penalties for non-compliance and other repercussions?
An EPC must be produced for inspection within 7 days of a request by a relevant local authority. Failure to do so may attract a penalty charge of £1,000, and the penalty for non-compliance can reach £5,000. An EPC also has a commercial significance as an EPC rating is likely to affect the future value and commercial attractiveness of a property.
Exceptions
An EPC is not required if you construct or intend to buy, sell or lease the following buildings:
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a property with a life span of less than 2 years (for example a temporary structure);
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a stand-alone building of less than 50 square metres; or
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a building that does not use fuel or power to control the internal temperature of the property (for example a garage).
How long is an EPC valid?
An EPC is valid for 10 years from the date of issue.
Why is an EPC important to me?
| I am a building owner | If you are constructing a non-residential property, and you have been granted a building warrant after 1 May 2007, then you are required to obtain an energy performance certificate. This certificate can apply to the whole of the property constructed, or, if there will be separate units separated by fire separated elements you can obtain a separate certificate for each unit as required. You must also make available, free of charge, a copy of an EPC to any prospective buyer or tenant either when requested to do so, or when an offer (oral or written) is made. |
I am a designer/ |
Designs will be expected to meet specific requirements to achieve the EPC rating sought by a developer. |
I am a buyer |
If you are buying a non-residential property, then you should inspect the property and confirm the building has an energy performance certificate affixed to it. If not, the seller is obliged to obtain an energy performance certificate. |
I am a seller |
If you are selling a non-residential property, then if the property does not have an energy performance certificate already, you should arrange for the property to be assessed and for the certificate to be fixed to the property. |
I am the landlord |
If you are the landlord of a property let to one tenant, you should arrange for an assessment to be carried out prior to any tenant taking occupation. If the property is let to more than one tenant, you either obtain a certificate to cover the entire property or, if there are fire separated elements between units, you could/should obtain a separate certificate for each unit as required. However, if the building has one air conditioning or heating system, it is likely that one certificate will suffice. When you let a unit to a new tenant no energy performance certificate has previously been obtained, again, you should carry out the assessment and obtain the certificate. |
I am the tenant |
If you are leasing the whole of a building owned by the landlord you should ask the landlord for sight of the energy performance certificate or, if no certificate has previously been obtained, you should request the Landlord to carry out an assessment prior to you taking occupation. If you are leasing part of a property which is let to more than one tenant, then there should either be one certificate to cover the entire property or, if there are fire separated elements between units, there might be a separate certificate for the unit you are leasing. |
Do the Regulations apply in England?
Similar regulations apply, but there are significant differences, for example in England:
- certain properties will require a Display Energy Certificate along with an EPC;
- key dates for compliance are different – 1 October 2008 was the date when all buildings over 1,000 square metres had to have EPCs in place;
- penalty charges range from £500 to £5,000.
If you would like to discuss the relevancy of EPC's to a building in which you have an interest, and the steps which need to be taken to protect that interest, please contact:
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Zivile Plyciute-Smith Solicitor Construction Procurement Tel. +44 (0)141 567 9440 zivile.plyciute-smith@mcgrigors.com |
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