Why have them at all?
Back in the ‘70s there was a tall tale doing the rounds about how if the entire population of China were to stamp their collective feet simultaneously, the resultant shock wave would trigger a tsunami of sufficient power to travel half way around the world.
True or not - this shows two things: firstly one person acting alone has little or no effect, but a large number acting together can make big things happen. Secondly, if such a thing is to happen, information is the key (after all they would all need to know precisely when to stamp their feet for the effect to take place).
This is the approach which has been adopted by the EU following on from the Kyoto Protocol of 1997. The idea is that in supplying information for each individual home or business premises, the occupants are thus better informed and then enabled to stamp their individual foot so to speak on the matter of climate change. If enough people do it, a big change will occur. However for change to occur, we all need to know where we are now – at the effective start point – in order to be able to implement and then measure improvements. This is precisely where the Energy Performance Certificate fits in to the process. Not one gram of CO2 will be saved simply by having an EPC, but at least it gives a measure of where we are now – at the start of the process.
How do I interpret my commercial EPC?
The Energy Performance of Buildings Directive of 2002 calls for, amongst other things, certification of buildings when they are constructed, rented out or sold. This is the chosen mechanism of providing the information to get things moving, and in the UK takes the form of the EPC. The most obvious feature is the so-called fridge chart which is designed to express the energy performance of the building in a transparent manner –so that a prospective buyer or tenant can readily compare the performance of two similar buildings and take this information into account when making a decision. Pre the EPC this was not possible as wildly varying tariffs meant that utility bills alone would not suffice. The logical inference here is that savvy buyers or tenants would choose the more energy efficient building over the lesser one ( or demand a reduction in rent)  thus encouraging the owner of the lesser one to make improvements.
The banding here is key. At a glance it is easy to see a Band B property will cost you less to run per square metre than say a Band F. But what about the numerical score also featured on the chart?
For this to make real sense, it must have at least one other number for it to be compared against. These are known in the jargon as ‘benchmarks’. On commercial EPCs there are two: ‘If Newly Built’ and ‘Typical Of The Existing Stock’. When the data for a specific building is entered into the calculation software, it also simultaneously ‘constructs’ the building as if built today to the latest Building Regulations Part L. This gives the ‘If Newly Built’ figure. Secondly it also compares the specific building details with known data for the exact same building type, size and usage, which allows the production of a ‘Typical of Existing Stock’ figure. Thus the EPC user has two easily understood comparables against which to judge their prospective new premises.
Does it really matter how accurate my EPC is?
Consider the case of the automotive industry as an example. A few years ago, when manufacturers started to produce CO2 per km emission figures nobody took much notice. Now however, it forms the basis of the Road Fund Licence charge. In buildings terms, larger companies are already involved in the trading of the right to pollute via the Carbon Credit scheme – already a $30 billion industry in the City of London alone! ACEA claim no prior knowledge of future government taxation plans, but it is not difficult to see which way the wind is blowing.
There is already anecdotal evidence that the more alert prospective tenants or buyers are using a poor rating to drive down prices. As energy costs rise and feature more heavily as a proportion of total costs, this pressure is bound to grow. An EPC has at present a validity of ten years. It is therefore more likely than not that during its’ lifespan your EPC result will have an impact beyond that which is evident in these early stages. It therefore makes sense to use an Energy Assessor who is concerned not just with offering value for money, but accuracy and quality of service as well.
What about the Recommendation Report?
For an EPC to be valid it must be accompanied by a Recommendation Report which offers general suggestions as to what might be done to improve the buildings’ rating. These are drawn up in principal from a list generated by the software and then edited by the Energy Assessor. However as the EPC is asset based (it only takes account of what is physically there and not how it is used ) the recommendations are also asset based. Further they are expressed in industry jargonese and are largely un-costed both in terms of capital cost and energy cost reduction. Unsurprisingly, research has shown that advice is more likely to be acted upon when it is clearly understood and made relevant to the case in question. Choosing an ACEA member means you will automatically receive a plain English version of the Recommendation Report in addition to the legally required version. Members also have the facility to calculate indicative energy cost savings of the measures which helps evaluate the benefits of the main recommendations featured. This is usually provided at an extra cost on request. Finally an experienced ACEA assessor will also note down certain behavioural improvements which could be made thus extending the usefulness of the EPC as an energy saving tool.
Do I have to act on the Recommendations?
Absolutely not – it is entirely up to you if you accept the measures suggested or not. The entire approach is market led at present, and an Energy Assessor is not there to act as a sort of environmental policeman. However they do provide a good start point for landlords and tenants alike to set about cutting their energy bills.
Why are Commercial EPCs more expensive than domestic ones?
Put simply, because they are significantly more complex to produce. Whereas a domestic property has one principle use – they are all homes – a commercial property may be used for anything from an office to a hotel to a factory and so on. And within these categories, different areas will be used for different purposes. This level of detail is required to accurately reflect the energy performance of a building. Hence both the initial survey and the calculation process is more complex and time consuming.
