Energy Performance Certificates

Since 1st October 2008, an Energy Performance Certificate (‘EPC’) is required for the sale or let of all commercial (and residential) properties. This requirement is in compliance with an EU directive now in force in England and Wales.

The purpose of an EPC is to indicate how energy efficient a building is. It comes in two parts. Firstly, the EPC Certificate which will provide a standard energy and carbon emission efficiency a grade from A-G for the building, where A is most efficient, just like with fridges. Each energy rating is based on the characteristics of the building itself (the fabric) and its services (such as heating, lighting, ventilation) and is known as an asset rating. Asset ratings will reflect considerations including the age and condition of the building. The second part is the Recommendation Report which sets out recommendations on how the energy performance of the building could be enhanced, the costs involved and an indication of the pay back period.

The Seller/Landlord is responsible for making the EPC available to the potential Purchaser/Tenant free of charge - (although a Landlord may be able to recover the cost of producing the EPC via service charge - this will depend on the terms of the lease.) The Seller/Landlord is still responsible even if an agent or another organisation is acting on their behalf or providing an EPC.

Local authorities/trading standards officers are responsible for enforcing the requirement to have an EPC. If a Seller/Landlord fails to provide a copy of an EPC within 7 days of a request by a trading standards officer, then the Seller/Landlord will be liable to a penalty charge. In most cases the penalty charge will be 12.5% of the rateable value of the building. The minimum penalty is set at £500 and the maximum is £5,000. Sellers/Landlords should note that they will still be liable for a penalty charge even if the prospective Purchaser/Tenant waives his right to receipt of an EPC, although there are a few exemptions.

An EPC is only required for a building when constructed, sold or let.

Sale or Let
If a property is in the process of being sold or let the Seller/ Landlord should obtain an EPC at the earliest opportunity and in any event (i) when written information about the building is first provided to the prospective Purchaser/Tenant (ii) when the building is viewed and (iii) before a contract to sale or let is entered into.

An assignment of a lease is considered a sale and the assignor should provide the EPC. An EPC is not required for a rental property where the Tenant is already in occupation before 1 October 2008. Lease renewals or extensions; compulsory purchase orders; sales of shares in the company or buildings remaining in company ownership; lease surrenders; sale/lease of buildings due to be demolished are not considered to be a sale or let.

Construction/ Modification
When a building being constructed is physically complete, it is the responsibility of the contractor to give an EPC to the building owner and to notify building control that this has been done, (Building Control will not issue a certificate of completion without sight of the EPC). Where a building is modified to have more or fewer parts than it originally had and the modification includes the provision or extension of fixed services for heating, air conditioning or mechanical ventilation, an EPC will be required. A building can be either the whole of the building or a part, where that part is designed or altered to be used separately eg a unit in a shopping centre or a floor in an office building. Buildings that are exempted include non residential buildings of less than 50 square metres floor area; places of worship; temporary buildings with a planned user period of 2 years or less and industrial sites.

In order to be valid EPC’s must be registered on the national register, so the authenticity of any EPC can be verified by looking up the reference number. EPC’s are valid for up to 10 years or until a newer EPC is produced. If there are other certificates for the building on the register that are less than 10 years old only the most recent certificate will be valid.

The person/agent who conducts the energy assessment and produces the EPC must be an energy assessor. Energy assessors can be self employed, employees of service organisations such as estate agents, surveyors or energy companies. Energy assessors must act in an independent manner and be a member of a government approved accreditation scheme (such as the Royal Institute of Chartered Surveyors, Quidos, Northgate, EPC Limited, National Energy to name but a few). If you have up to date information and plans for your building the assessor may be able to base his assessment upon these without the need for a site inspection, but not always. If there are no plans for the buildings then the assessor will need to survey the premises.

There are no set costs for EPCs. Price will vary according to size, type and location of the property, reaching several £1,000’s for larger properties.

Please note that this is a basic overview of the Regulations and you should not rely on this guide as being exhaustive. If you require more detailed information, please feel free to get in touch with us.

© nexus solicitors 2008
*Energy Performance of Buildings Directive & The Energy Performance Buildings (Certificates and Inspections) (England and Wales) Regulations 2007

Employment Law Bulletin
REMINDER - IMPORTANT DATE - 1 OCTOBER 2004

Disciplinary and grievance procedures

On 1 October 2004 mandatory disciplinary and grievance procedures will exist which if not followed will have important consequences for both employers and employees.

· If employers do not follow the minimum statutory disciplinary procedures when dismissing employees they will be subject to claims for automatically unfair dismissal from employees subject to a 1 year qualifying period.

· Mandatory grievance procedures mean that an employee will not be able to bring the majority of claims in the Employment Tribunals unless they have lodged a written grievance with the employer and waited 28 days before bringing a claim.

Disability Discrimination Act 1995 ("DDA")

There are to be a number of changes from 1 October 2004 but the main ones are:

· Employers with less than 15 employees will have to comply with the DDA.

· The justification defence is abolished for failure to make reasonable adjustments.

· A new definition of direct discrimination and a formal definition of harassment.

National Minimum Wage Increases from 1 October 2004

· Adult rate for workers over 22 years old increases to £4.85 per hour.

· Development rate for workers aged 18 to 21 years old inclusive increases to £4.10 per hour.

· New rate for 16 and 17 year olds of £3.00 per hour although there is an exemption for 16 and 17 year old apprentices.

For further information on the above or any other employment law issue, please contact Carl moran on 0161 819 4915

Employment Law Healthcheck

No business can afford to ignore developments in the area of employment law. This rapidly evolving area of law impacts on everybody; you need to make sure you have the necessary documentation and procedures in place to avoid falling foul of existing laws and regulations, or changes in the law. We are therefore offering a free Employment Law Healthcheck to all our clients and contacts between now and 30 March 2004. At no cost to you, you can arrange:

· an on-site discussion with an experienced employment lawyer

· an appraisal of your existing employment documentation

· an appraisal of your procedures

· an opportunity for us to identify and for you to raise queries on any potential problem areas.

The service is free of charge and without obligation. To learn more, please contact Carl moran on 0161 819 4915 to arrange a mutually convenient time for a visit by our team.

New legislation affecting employers

From December 2003 three important new sets of Regulations came into effect:

1. prohibiting discrimination in the workplace on the grounds of sexual orientation;

2. prohibiting discrimination in the workplace on the grounds of religion or belief;

3. banning hand held mobile phones in cars.

Employers' potential liability is therefore extended, and it is important that businesses have systems in place to ensure compliance, preferably by way of a company handbook.

All staff, particularly those involved with recruitment or management, need to be aware that discriminating or harassing a person on the basis of their sexual orientation or religion or belief could expose both them and the company to liability.

In addition, companies can now become liable for fines for employees using hand held phones in their cars during the course of employment.

For further information on this or any other employment law issue, please contact Carl moran on 0161 819 4915.