MEES - Minimum Energy Efficiency Standards
Whilst
a year may be a long time in politics in the energy industry it can soon pass
and the reason for mentioning this now – the impending introduction of the
Minimum Energy Efficiency Standards due in April 2018.
Background
The
government has identified buildings as a major contributor to Greenhouse Gas emissions
and decided that these buildings pose a threat to the government achieving its carbon
reduction targets for 2020 and 2050. Government figures show that around 18% of
commercial properties hold the lowest F and G ratings and whilst more recently
completed buildings are usually more energy efficient it is the older buildings
that this legislation is aimed at targeting. This new legislation goes under
the acronym of MEES (Minimum Energy Efficiency Standards) and dates back to the
Energy Act of 2011.
Existing Rules
Currently
the energy ratings for commercial buildings runs from A+ (the most energy
efficient buildings) through to G which represents the least energy efficient
of buildings. First introduced in 2008
and applying to most commercial properties this rating system has proved
invaluable for tenants and landlords alike - from the tenants point of view
they are able to gain an insight as to how much energy the building will use
whilst from the landlords perspective the more energy efficient the building is
then it will likely be more readily tenanted as opposed to a building that is
less energy efficient, i.e. costs more to run.
MEES
From
April 2018 the introduction of MEES (Minimum Energy Efficiency Standards) means
that the rules and regulations surrounding the energy efficiency of commercial
buildings will be more strictly enforced
leaving the commercial property owner open to potential fines and could
result in some commercial properties being unlettable.
Any
commercial property that requires a non-domestic EPC energy assessment has to,
from April 2018, not be any worse than an E rating – basically if you own a
commercial property that is currently an F or G rating under the current system
then they will need to be improved as the new legislation means that after
April 2018 the landlord / owner will not be legally able to either rent or sell
the property.
Landlords
must not let a property below an E rating to any new tenants and they cannot
renew or extend an existing tenancy agreement after April 2018.
Potential
Exceptions to MEES
Where
an independent assessor determines that all relevant energy efficient
improvements have been made OR where the improvements that could be made would
not pay for themselves through energy savings within seven years. Level 4 Non
Domestic Energy Assessors are permitted to determine expected savings. Here
at CEAUK we are qualified to Level 4 and we are permitted to determine the repayment
cost of improvements to satisfy the Payback Test.
There
are a number of other exemptions that apply and you can discuss whether or not these
apply with us here at CEAUK.
If
a property qualifies for exemption then this must be registered on the PRS
Exemptions Register (the Register won’t be available until October 2017 and not
until April 2018 for public use).The only other exemptions include properties
let on a maximum six month lease or a
property let on a 99 years or more
lease. However landlords may want to improve the energy rating of the
building in any event.
IF YOU WISH TO REGISTER A PROPERTY FOR EXEMPTION
THEN LANDLORDS CAN DO SO AT THIS TIME – CONTACT US HERE AT CEAUK FOR GUIDANCE.
What to do
between now and April 2018
We
here at CEAUK have as a matter of course started contacting our clients who may
be effected to advise them of this change. As a property professional be it a commercial
landlord, local authority, private landlord or commercial agent then you may
want to advise your clients to review their portfolio at this moment in time.
If you have a number of commercial properties in your portfolio you may want to schedule a programme of improvements for
those properties that are rated F or G.
If
you are unsure what your responsibilities are then please feel free to contact
us here at CEAUK either by email dave@devsol.biz
or telephone 0330 381 8585 and we will help with your query.
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