Commercial heating
The ABC to improved EPC
Minimum Energy Efficiency Standards for the Private Rented Sector come into effect next year. Chris Meir, sales director at Remeha, looks at the implications for commercial landlords and the role of condensing boilers in achieving compliance
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n April next year, the Minimum Energy Efficiency Standards (MEES) set out under the Energy Efficiency (Private
Rented) Property Regulations 2015 will make it unlawful for landlords to let a non- domestic building with an Energy Performance Certificate (EPC) rating of F or G. Under the regulations, buildings that fail to achieve a minimum energy efficiency standard, set at an Energy Performance Certificate (EPC) rating of E, are deemed ‘substandard’. It will be an offence for landlords to let these ‘substandard’ properties unless they have made all possible cost-effective energy efficiency improvements or if exemptions apply. The MEES regulations will apply to both new leases and lease renewals for all non- domestic buildings private rented sector (PRS) properties requiring an EPC from April 1, 2018. From April 1, 2023, the regulations will apply to all eligible privately rented property, including existing tenancies where a lease is already in place and a property is occupied by a tenant. The government has published guidance on steps that landlords will need to take to meet MEES requirements. MEES is one of the most significant
pieces of legislation to be introduced in recent years to improve the least energy- efficient private rented stock in England and Wales. Through MEES, the government aims to support the nation’s long-term energy security and achieve the UK’s 80% carbon reduction target by 2050. The regulations also offer huge opportunities for the building services sector to help future-proof the built environment.
23% substandard offices
But what are the implications for landlords? Current estimates indicate that the regulations could affect a fifth of all non-domestic property falling under the scope of MEES. Put another way, that’s an estimated £165.49 billion of the UK commercial property market. The office sector was found to have the highest proportion of sub-standard units, with 23% rated F or G, and 18% rated E. While the regulations have been well signposted, many landlords are still ‘complacent’ about the impact of the new environmental regulations, according to a report by Property Week. Yet non- compliance could result in the landlord
Chris Meir, sales director at Remeha
A Remeha Gas 310 Eco Pro and two Remeha Gas 610 Eco Pro gas condensing boilers were installed in a phased refurbishment at 65 Fleet Street, the City headquarters of international law firm Freshfields Bruckhaus Deringer, to achieve high efficiency heating and improved energy performance with minimum disruption
being fined up to £150,000 or 20% of the rateable value of the property – whichever is larger.
And given the results of recent research
carried out by Arbnco, it’s not just landlords of F and G rated property who should be preparing for the potential impact of MEES. After re-running 3,500 EPCs using current Simplified Building Energy Model (SBEM) software on non-domestic EPC Re- Simulation Analyses, Arbnco concluded that a third of all D and E rated properties had dropped into the F and G bands. This result is particularly important as the analysis was conducted on well-managed building stock. In other words, there is potential to see a greater percentage drop in less well managed portfolios.
Take action
So what action should landlords take? First, commission an up-to-date EPC. Second, identify and carry out the necessary retrofit upgrades ahead of the April deadline. Under MEES, all improvements must pass a seven-year payback test – and this is where condensing boilers have a role to
26 November 2017
www.heatingandventilating.net
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