EPC Reform

Full review to the government’s Reforms to the Energy Performance of Buildings Regime Consultation; a consultation which has proposed wholesale change to Energy Performance Certificates (EPCs) in England and Wales.

In addition to proposed changes to both Domestic and Non-Domestic EPCs, the consultation also looked at potential revisions to Display Energy Certificates (DECs) required for public buildings and Air Conditioning Inspection Reports (ACIRs).  The outcome of the consultation and changes are likely to come into force in 2026.

Summary of Proposals

New EPC Metrics

The government is proposing to introduce a number of different metrics to be displayed on EPCs- representing a move away from the colourful A to G rating scale (A+ to G for Non-Domestic EPCs). The new metrics proposed are intended to provide a more complete representation of building energy performance.

• Energy cost: helping individuals understand the financial implications of a building’s energy efficiency and make informed decisions about potential improvements
• Fabric performance: assessing the thermal performance of a building’s envelope
• Heating system: providing information on the efficiency and environmental impact of a building’s heating source
• Smart readiness: assessing a building’s potential to integrate smart technologies that can optimise energy consumption
• Carbon: an estimate of the carbon emissions arising from the energy used in the building
• Energy use: offering insights into overall energy consumption and identifying areas for energy efficiency improvements

The consultation highlights that Domestic EPCs would use four headline metrics which includes: ‘fabric performance’, ‘heating system’, ‘smart readiness’ and ‘energy cost’. Other metrics would then be provided as secondary information which would be less prominent on the EPC.

Non-Domestic EPCs will likely maintain the single headline carbon metric in the short term, as they are already carbon-focused and aligned with net zero objectives.

Reduction in validity period of EPCs

The consultation proposes a change to when an EPC is required for a property. At present, the validity period of an EPC is 10 years, and a valid EPC is required when a property is marketed for sale or let or is newly constructed.

The consultation now poses the question as to what the validity period for EPCs should be, presenting 6 different options, ranging from less than 2 years to 10 years.

Reduction in validity period of DECS

A reduction of validity period is also being proposed for DECs, from 10 years to 7 years for buildings between 250-1,000m², and from 7 years to 5 years for buildings over 1,000m (DEC Recommendation Report Only).

Increased trigger points

As well as the validity period, the government is also considering increasing the requirements/trigger points for EPCs. One of the biggest proposals here includes the need for private landlords to get a new EPC when their current EPC has expired.

A redesign to Air Conditioning Inspection Reports (ACIRs)

The government is proposing a redesign to ACIRs which will aim to simplify them for system operators. A new look report will aim to include the following information:

• the likely efficiency of the system and any suggestions for improvement of any faults identified
• the adequacy of equipment maintenance and any suggestions for improvement
• the adequacy of the installed controls and control settings and any suggestions for improvement
• the current size of the installed system in relation to the cooling load and any suggestions for improvement
• consideration of the capabilities of the system to optimise its performance under typical operating conditions
• a summary of the findings and key recommendations

Increased penalties for non-compliance

The consultation aims to enhance compliance and enforcement of EPC requirements.

Proposed updates include revising penalties to better reflect the actual costs of compliance. At present, some fines may be lower than the cost of meeting regulatory requirements, making non-compliance a more attractive option.

Additionally, it has been highlighted that certain penalties have remained unchanged since 2007 and may no longer serve as an effective deterrent.

Review of training and standards

The consultation is also looking at energy assessors; the training they receive to qualify, as well as the ongoing competency they need to deliver energy certificates for different buildings.

Options have been proposed to tighten this up and identify areas where additional/optional training would be of use. This could include energy assessment of heritage buildings for example.