From April 2018, a new legal standard for minimum energy efficiency will apply to rented commercial buildings.
These changes will make it unlawful to rent or lease a commercial property with an Energy Performance Certificate (EPC) rating below an E.
This will expand to include all privately rented property from 1st April 2023.
What is MEES?
The Minimum Energy Efficiency Standard (MEES) was introduced in March 2015 by the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015. The MEES Regulations originate from the Energy Act 2011, which contained energy efficiency policies including the Green Deal scheme.
The current energy efficiency rating goes from A-G, G being the worst performing. Now the minimum standard is set to an Energy Performance Certificate (EPC) band E or better. This means that if any of the buildings of your portfolio has an EPC with a rating of F or G you will not be able to lease that property.
MEES will apply to new leases after the 1st of April 2018. Landlords will need to ensure that their properties comply with MEES before the lease is completed.
However, from 1st of April 2023 all privately rented properties will be required to meet a minimum standard.
There are some exemptions:
- Properties that are exempt from the EPC Regulations, they are also exempt from MEES.
- Only improvements to the building with a payback of seven years or less will be affected by MEES (cost effective measures).
- If third party consents are not available despite reasonable effort.
- Where the property cannot be improved to an EPC rating of E because certain energy efficiency measures will devalue the property
You can find the full list of exemptions and more information about the MEES regulations here.
Penalties for MEES non-compliance
Financial penalties for non-compliance will be linked to the rateable value of the property, but could be as much as £150,000.
1 April 2018
It will be unlawful to grant new leases of commercial properties with an EPC rating below an ‘E’.
1 April 2023
This will be extended to include all existing commercial leases.
How TEAM can help you?
We have been working with clients to prepare them for the forthcoming changes. If you have a building or a property portfolio, we can help you on the best approach to deal with MEES regulations.
We will assess the current situation and give you advice on how to achieve an EPC rating of E or better for each building or portfolio of properties.
TEAM has Chartered Engineers, level 5 Non-Domestic Energy Assessors and ESOS Lead Assessors who can also prepare and produce the energy reports for you.
For more information on how TEAM can help you to comply with MEES, please contact us.