Non-Domestic MEES

By Josh Wakeling, Operations Manager

Since 2018 it has been unlawful to grant new leases for private rented commercial properties with an Energy Performance Certificate (EPC) rating below an ‘E’. This scope will be expanded further in 2023 to include existing leases*.

*Note - If the EPC has expired or no EPC exists/haven’t legally been required to obtain an EPC then they don’t need to meet the E rating until the EPC is legally triggered. The government has also established a long term target of EPC rating B for all private rented commercial properties by 2030, with the industry waiting on how this will be implemented. The government has proposed that this standard be raised with interim targets of EPC rating D by 2025 and C by 2028, however this has yet to be confirmed. This is estimated to cover around 85% of the non-domestic rented stock, deliver up to 10.3TWh in energy savings by 2030, and 4.1MtCO2e of carbon (non-traded) over Carbon Budget 5 (2028-2032). Modelling suggests bill savings to business in 2030 would be around £1 billion. In total, it is anticipated that the trajectory would deliver an overall net present value of £2.5 billion to the UK economy!

The UK’s Industrial Strategy set out how the Government intends to build a Britain fit for the future. Clean growth - meaning growing the national income while cutting greenhouse gas emissions - is at the heart of the industrial strategy. As one of the UK’s ‘Grand Challenges’, its success relies on the UK being able to maximise the advantages of the global shift towards low carbon. MEES has a vital role to play in this wider goal.

Following the consultation “EPC B Future Trajectory Implementation” there are a number of areas government is dedicated to commit to improving, these include:

n Improve the implementation of the payback test and general enforcement of the regulations - Proposed a national standardised calculator tool.

n Improve how the regulations currently apply to older buildings and to premises rented in a shell and core state - Proposed a temporary 6 month renovation exemption.

n Introduce a compliance window approach designed to simplify compliance and enforceme.

Government suggested the outcome to this consultation would be published late 2021, yet we are still waiting!

https://assets.publishing.service.go v.uk/government/uploads/system/ uploads/attachment_data/file/8395 65/non-domestic-prsconsultation-ia.pdf