Minimum Energy Performance Standards (MEPS) / Minimum Energy Efficiency Standards (MEES)

What does this legislation mean?

Under the Energy Act 2011, from April 2018 onwards, there will be amendments made to the EPC requirements for property owners, under the name of the Minimum Energy Performance Standards (MEPS) which is also referred to as the Minimum Energy Efficiency Standards (MEES). The new changes will make it unlawful to let residential or commercial properties with an EPC rating of F or G, until their energy efficiency has been addressed. Furthermore, buildings with a current EPC rating of E, may also be affected, as the rating may fall beyond this point upon re-assessment or the minimum standard may be raised to D.

Applicable properties that fail to achieve the minimum E rating, will be required to implement the necessary changes to improve the asset’s performance, until the property reaches the minimum standard. Until this has been done, a landlord may not let or in some cases continue to let, a property that fails to achieve the minimum standard.

It has been reported that 75,000 commercial properties have F or G ratings, with a further 65,000 with an E rating.

What is the purpose?

The purpose of the new legislation is to increase the rate of upgrades to energy inefficient buildings and the general awareness of energy-related issues. The new legislation aims to trigger cost-effective investments in a variety of building types, in order to reduce energy use and carbon emissions, thereby reducing the occupiers’ costs.

Although the amount of spend is higher when increasing a buildings EPC rating to D, the associated energy savings will also be higher. Not only this, but it is not known when the minimum standard may rise again, therefore by undertaking the work now, it will prevent double overheads for future legislative changes.

Implications for property owners?

It is predicted that the cost of energy and mandatory energy efficiency improvements will influence market pricing. This may result in potential buyers and tenants being more cautious when choosing properties, due to the risks attached with F or G rated buildings. This is predicted to have a negative impact on landlords that have not pursued the necessary actions in order to prevent this before the 1st of April 2018.

The measures associated with the new legislation will be beneficial to occupiers, as it will reduce their costs and provide various energy saving opportunities in the future.

How can Compliance365 help you?

Compliance365 can help your organisation begin to put the necessary changes in place, in order to become compliant in good time before the deadline approaches:

 

  • Provide advice on the legislation and the implications for property owners.
  • Assess the Energy Efficiency of a building, by producing an Energy Performance certificate (EPC).
  • Produce an EPC Review on an EPC carried out by ourselves, which proposes the changes that could be made to the property, matched with the expected change in rating these would cause (Scenario Analysis).
  • Budget the implementations we propose, helping companies to distinguish what steps they need to take, to ensure they are fully compliant by 2018.

EPC

 

Scenario Analysis

 

EPC Review