Taking a considered approach to improved efficiency
June 1st 2007

With all the media coverage of the introduction of energy performance certificates, it is important to read past the headlines in order to work out the real implications for building other than domestic houses, says Alan Aldridge,Executive Director of the Energy Services and Technology Association (ESTA)

lthough a number of details have yet to be decided, at least outside Scotland where the new regulations seem simpler but maybe not as useful, the basic framework for the introduction of Energy Performance Certificates and Display Energy Certificates is now in place – and is not about to be derailed by a court challenge as happened in the domestic sector. So organisations need to be preparing for the imminent arrival of this certification process.

That having been said, it is important to stress that the impact of the new rules will be progressive and cumulative – everything does not have to be done on Day One.

The system will also make quite different demands on different organisations. For many, there may be no immediate action required at all. A 'cliff-face' of urgent compliance work that some have predicted may not prove such a massive obstacle.

Energy performance certificates EPCs will only be required where a building is constructed, sold or let.

So for most organisations liability under the new rules will be limited to the extent to which it is planned to expand, reduce or re-let parts of the estate over the coming years. For a large number of organisations there will be no immediate urgency to complete the energy assessments.There may, however, be benefit in carrying out the assessments of the property portfolio now.

Display energy certificates For a small number of large organisations, there is a need to act immediately. Publiclyfunded buildings of more than 1000m2 (i.e. this does not just concern the public sector, it also covers PFI contracts for example) where the public have regular access will need to publicly display their energy ratings from April 2008.

The Display Energy Certificate as it is known includes an 'operational rating'.This is a measure of how efficiently a building is run and need a year's meter readings – actual, not estimated. Organisations affected need to ensure now that the relevant meter readings are available. If for any reason they are not, then arrangements need to be put in place now so that no more time (and data) is lost.There will be a few months 'leeway' as the new regulations bed in, but not much.

Further guidance is available from Communities and Local Government at www.communities.gov.uk/ index.asp?id=1510795 The opportunity While the immediate focus for many energy and facilities managers is – understandably – compliance, the new regulations offer a major opportunity to engage senior managers in the energy management process.

The A-G banding on the certificates is much more readily understandable to non-specialists than kilowatt-hours per useful square metre of floor space. Also it will be familiar to anyone who has bought a fridge/freezer or a new car recently.

The fact that energy efficiency will now be a factor in purchasing/letting decisions should also be a matter of interest to finance departments since this will affect the asset value of the properties within the building portfolio.

Importantly, it should be easier to quantify the costs of improvements by explaining how much investment is needed to lift a building from one band to another.While the limits to each band may seem to some extent arbitrary, they provide excellent steps to better managed and more efficient structures.

The energy performance rating process is here – and here to stay.

Energy managers need to use it to their advantage from today.

More articles from ESTA: