The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015

These Regulations introduce measures to improve the energy efficiency of certain private rented property in England and Wales.

It provides that, the landlord of a non-domestic private rented property must not grant a new tenancy of the property after 1st April 2018, and must not continue to let the property after 1st April 2023, where the energy performance of the property is below the minimum level.). It prescribes a minimum level of energy efficiency for private rented properties: that is, is an energy performance indicator (evidenced on the energy performance certificate for the property) of band E.

This legislation is triggered by new leases and lease renewals although not sales.

Why force minimum standards for energy efficiency in existing buildings?

Research in 2014 conducted by Consumer Focus1 shows that only 17% of those who have received an EPC have acted on the recommendations. EPCs were introduced to reduce energy use and CO2 emissions and perhaps a lack of action by building owners has required mandatory improvements to be made.  Minimum requirements have resulted from a recent EU directive, resulting UK legislation and the Climate Change Act Scotland 2009.

In England and Wales, the Department of Communities and Local Government has announced that by Autumn 2018 buildings for sale or to let will be required to meet a minimum EPC rating (likely an English E, which is often easier to achieve than a Scottish E) before they can legally be sold.  In Scotland, rather than set a minimum EPC grade before a building can legally be sold or let the Scottish Government are introducing improvement measures that must be legally met under an Action plan.

The Investment Property Databank (IPD) Sustainability Index was introduced in March 2008 and monitors the ungeared performance of sustainable commercial properties in comparison to standard investment properties.

Results are published twice a year showing performance results or more and less sustainable properties in the UK market. Performance data is drawn from over 1,200 properties, from over 100 portfolios and worth £23.1bn (as at March 2011).

The data is collated from all sectors of property including retail (£12,336m), office (£7,742 million), industrial (£2,487 million) and other (£553 million). 

The Kyoto Protocol introduced many initiatives to reduce CO2 emissions, one was Carbon Trading; however carbon credit prices have fallen by 50% since June 2011.

The idea behind Carbon Trading was that a limit would be established to emit greenhouse gases from high emissions. Once the limit was established then polluters would either have to buy the right to pollute or stop polluting or a combination of the two. Paying to pollute would involve purchasing carbon credits.

These are the latest greenhouse gas emissions as of 2015.

The Department of Energy and Climate Change (DECC) released the greenhouse gas emissions for 2010 during February 2012. In 2010, UK emissions of the basket of six greenhouse gases covered by the Kyoto Protocol were estimated to be 590.4 million tonnes carbon dioxide equivalent (MtCO2e). This was 3.1% higher than the 2009 figure of 572.5 million tonnes.

CRC Energy Efficiency Scheme to be abolished

The CRC Energy Efficiency Scheme (formerly known as the "Carbon Reduction Commitment") will be closed following the 2018-19 compliance year. The scheme applies to large energy users in the public and private sectors across the UK, including supermarkets, water companies, banks, local authorities and all central government departments. Organisations that meet the qualification criteria are required to participate, and must buy allowances for every tonne of carbon they emit.

In the Budget on 16 March 2016, the Chancellor of the Exchequer announced that the government has decided to close the CRC scheme following the 2018-19 compliance year. Doing this will significantly streamline the business energy tax landscape by replacing it, in a revenue neutral way, with an increase in the Climate Change Levy.

Organisations will report under the CRC for the last time by the end of July 2019 and surrender allowances for emissions from energy supplied in the 2018-19 compliance year by the end of October 2019.

Previous Post: February 2014: The league table ranks each participant (2,103 in total) based on a weighted average. The CRC energy efficiency scheme was set up to improve energy efficiency and reduce CO2 emissions of the UK's largest energy users. It is said that the participants energy use account for 10% of energy use in the UK.

Where an equal ranking occurs the participant is sorted alphabetically. The full rankings can be obtained by going to the Environment Agency website at www.environment-agency.gov.uk/business/topics/pollution/134754.aspx

22 bodies were ranked in number one in the league table and included the likes of 99 Bishopsgate Management Ltd, Barnsley Hospital NHS Foundation, Centre Parcs, Department of Energy & Climate, Manchester United Football Club and UBS UK Properties.

Scotland: Non-domestic property Energy Performance Certificate (EPCs) central register.

In November 2011, the Scottish Government issued a consultation seeking views on the introduction of a fee for each EPC registered on the electronic database as described in the Energy Performance of Buildings (Scotland) Regulations 2008. This proposal coincides with the expansion of the database to include EPCs for both dwellings and non-domestic buildings.

January 2013 - The Scottish Government has concluded that a central lodgement system will be created and it will be mandatory for non-domestic EPCs to be lodged. It is anticipated that from 1st october 2012 the Scottish Government introduce a lodgement fee for dwellings (£1.15 + VAT) and non-domestic buildings (£5.36 + VAT).

Costs

The level for non-domestic buildings has been set at £5.36 + VAT per property plus accreditation costs will bring the true cost of non-domestic lodgement to around £25. EPC software costs are not included in this with private specialist software being in addition to this where the assessor opts not to use iSBEM.

The Energy Act 2011 along with the Climate Change (Scotland) Act 2009 has introduced the reality of minimum energy efficiency standards for properties in the England and Wales and perhaps Scotland.

The Energy Act 2011 has extended the freedom of information for EPCs & DECs in England & Wales. The measure will enable buildings located in England and Wales to be openly benchmarked based on the EPC rating.

Currently the situation in England and Wales is that EPCs, Display Energy Certificates and Air Conditioning Reports are only made available to the Energy Savings Trust, Trading Standards and those with a unique document reference number for the EPC.

The decision to remove restrictions on accessing the data and make English and Welsh data on EPCs more accessible. By publicly listing ratings, similar to the CRC Energy Efficiency league table, the intention is that owners will be encouraged to improve the energy efficiency of their building stock and support the forthcoming Green Deal.

Approximately 7 million domestic & non-domestic EPCs have been lodged on the central database in England and Wales.

No central database currently exists in Scotland however at time of writing a Scottish Government consultation is open proposing to start a Scottish EPC register.

Servers and associated equipment required to run websites and general internet communication is housed in data centers. Electricity consumed in data centres, including enterprise servers, ICT equipment, cooling, power equipment is expected to contribute substantially to the electricity consumed in Western Europe commercial sector in the near future.

Between 2007 and 2020 electricity consumption is expected to increase from 56 Terawatt hour (TWh) to 104 TWh. In order to reduce carbon emissions and reduce costs through creation of this electricity demand for data center efficiency should be maximised.

In contrast to many conventional buildings, cooling is one of the largest energy users and as such represents the biggest opportunity to improve efficiency.

Metro Commercial has experience in providing EPCs for data & telecom centres. In addition to meeting legislative requirements, an EPC for a data center can begin to identify opportunities to reduce energy and carbon emissions. Within a data center there are a number of energy efficiency measures than can be taken to reduce energy consumption over and above those that may be identified in a conventional EPC report. These can be provided in addition to the EPC.

More interesting information about energy efficiency in data centers.

With the introduction of the Scottish Government non-domestic EPC register comes the ability to access EPCs online. EPCs can be accessed and viewed online by any party with access to the Report Reference Number (RRN) and to organisations (‘authorised recipients’) delivering energy efficiency and carbon reduction initiatives on behalf of the Scottish and UK Governments.