A minimum level of energy efficiency for privately rented properties was established in 2015 as part of the Energy Efficiency (Private Rented Property) (England and Wales) Regulations.
Under these regulations, in 2018 a new legal standard for minimum energy efficiency was applied to rented commercial buildings. This change made it unlawful to rent or lease a commercial property with an Energy Performance Certificate (EPC) rating below an E.
These requirements will now apply to all private rented properties in England and Wales, even where there has been no change in tenancy arrangements from 1 April 2023 for non-domestic properties.
How TEAM can help
Our energy assessors can help organisations be compliant with the MEES legislation by producing MEES reports to highlight what changes to buildings are needed to improve their asset ratings to a minimum of E. Whether there is a valid EPC in place or not, we can calculate the current asset rating and offer cost-effective solutions to compliance.
Our service includes:
- Review of the current property rating
- Conduct a full assessment of the property
- Provide simulation of energy demand
- Outline detailed suggestions of energy saving opportunities to achieve a higher rating
- Calculations of energy savings, CO2 savings and payback for all suggested opportunities.
MEES Penalty Charges
There is a financial penalty for non-compliance which is based on 10-20% of the rateable value of the property up to a maximum of £150k per breach. The landlord in breach may also be published on a public register giving details of the breach.
There are some exemptions:
- If the consent of a third party is required to carry out works but this is refused (such as a local planning authority)
- When improvements would result in a devaluation of the property by 5% or more or that the works would damage the property
- When all cost-effective improvements have been carried out, but they do not result in an EPC rating of E or higher
- Where the cost of purchasing and installing a recommended efficiency improvement would not meet the 7-year payback test.
Exemptions require registration in advance on a Government register and need to be renewed at least every 5 years.
How do Energy Performance Certificates (EPC) link to MEES?
The Minimum Energy Efficient Standards (MEES) affects landlords of privately rented properties. Under MEES these properties must have at least an Energy Performance Certificate (EPC) rating of E before granting a new tenancy to new or existing tenants.
EPCs act as a guide to let potential buyers or tenants know how costly a property will be to heat and light, and what its carbon dioxide emissions are likely to be. An EPC will also state what the energy-efficiency rating would be if it was newly built or typical of the existing buildings, plus highlights cost-effective ways to achieve a better rating. Even if you rent your building, some improvements noted on the EPC may need to be implemented, such as switching to more energy-efficient light bulbs, to comply with regulations on the minimum EPC rating.
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Speak to an accredited energy assessor on 01908 690018