Commercial Properties Must Comply With New EPC Minimum Energy Efficiency Standard by April 2018
Are You Prepared for the New MEES Regulations?
On the 1st of April 2018 there will be a new Minimum Energy Efficiency Standards regulation implemented in England and Wales. This new requirement will make it unlawful to create a new lease for any commercial property with an Energy Performance Certificate (EPC rating) below ‘E’ where the lease is longer than 6 months or shorter than 99 years. The legislation will be extended to all privately rented property with existing leases by April 2023. There are an estimated 20 percent of properties in England and Wales that currently do not meet the new EPC requirement. The impact on the cost to landlords from non-compliant properties will also result from reduced asset values on investor ledger reports.
Aim of the scheme
The MEES regulation has been set up by government to reduce Greenhouse Gas emissions from the built environment, which has been seen as a major threat to the ability for the UK to meet our carbon reduction targets by 2050. The scheme will help narrow the gap between Landlords interest’s in energy efficiency and the cost to implement.
The scheme has momentum now with the deadline getting closer and it is expected that the MEES limits will become an increasingly important part of the governments emphasis on building energy efficiency. With the Spring season getting closer, commercial properties across England and Wales are reminded to prepare themselves in advance as they realise both the dangers (e.g. valuation and secured loaning) and opportunity (e.g. prestige including openings) that the MEES regulation presents.
How can Ecova help you reduce your risk of penalty?
Our MEES Risk Management Service can assist you in preparing for the scheme and assessing and managing risks to your site portfolio. We can support you in the following ways:
- Review portfolio and assess scheme coverage and impacts
- Analysis of existing EPCs to validate ratings
- Deliver new EPC assessments to determine portfolio ratings or correct existing assessments
- Site surveys and data collection to identify improvement measures
- EPC re-modelling to determine benefit of improvement measures
- Provide implementation action plan, feasibility assessments and prioritisation of measures
- Financing schemes through guaranteed savings to realise benefit now