Landlords of non-domestic properties will have to make their assets more energy efficient from April 2017, thanks to new changes to the Energy Act 2011.
The closure of the first round of the ESOS scheme, the mandatory assessment scheme for organisations in the UK, has been followed by new guidelines for minimum energy performance standards: all qualifying businesses must undergo audits to see if energy efficient improvements can be made to their properties and transport.
For landlords, it’s a new regulation that’s vital to adhere to: should a property not meet new Minimum Energy Performance Standards (MEPS), they will be unable to continue to let it unless the tenant refuses permission for them to make the required business energy cost savings. If the standards aren’t met, Trading Standards officers will decide whether to impose a penalty, which could range from fines of £5,000 to £150,000, depending on the property size. Landlords will have 28 days to appeal if they receive a penalty.
While the details have not yet been finalised, it’s predicted that the new MEPS will fall in line with the current EPC rating of ‘E’. If a landlord’s non-residential property is unable to meet this standard, they will need to implement measures to improve the energy rating of their property or risk being fined. These measures, though, are subject to their own rules and regulations: any that are undertaken to improve a property’s energy performance rating must be deemed ‘cost-effective’. If a measure is ‘cost-effective’, this work can be contested by the landlord, and, should the decision be in their favour, the work may not actually need to be undertaken.
Luckily, however, there will be help available. Landlords will be offered loans to pay for energy improvements, these loans will pay for themselves in the form of cost savings down the line. Detailed guidance has been published by the DECC, which can be found here.
It’s essential that businesses are able to keep up with government regulations regarding energy performance and all other ‘red-tape’ schemes. If we’re honest, it can be a bit of a minefield.
That’s where our team can really help your business out of the starting block and keep your energy tariffs ticking along, not only cost effectively, but in-line with the latest guidelines.
If you have any queries regarding the new non-domestic energy performance criteria, get in touch with one of our business solutions experts today and we’ll put together a plan that ensures your business runs smoothly and never pays any more than it should for the energy it uses.
Simple.