​Government proposes changes to energy performance certificates

The government is proposing to change the way it measures the energy performance of homes.

In a consultation paper published this week, the Ministry of Housing, Communities and Local Government (MHCLG) and the Department for Energy Security and Net Zero (DESNZ) outlined a shake-up to energy performance certificates (EPCs).

Changes proposed in the paper including replacing energy efficiency ratings for domestic buildings with four new headline metrics and shortening the period for which EPCs are valid.

EPCs have been required to be produced for certain domestic dwellings and non-domestic premises since 2007 and are intended to ensure transparency about energy performance for prospective buyers, tenants, policymakers.

However MHCLG and DESNZ in its consultation paper said the single headline metric used in EPCs - the environmental energy rating (EER)- “is proving to be insufficient to meet the diverse needs of users and policy objectives”.

EERs are a measure of the calculated costs of energy used per floor area.

The paper said this presents challenges as assumptions about fuel prices can become outdated, while updated price assumptions can cause dwellings to move between EPC bands despite no changes in a building’s energy performance. It also said a cost-based metric may not incentivise switching from fossil fuel heating to low-carbon alternatives because of the effects of the relationship between fuel prices incorporated within the methodology.

The government said that while there should continue to be a calculation of predicted costs of the energy used in the building, this should not be the sole, headline metric used to determine EPC ratings for domestic buildings.

Instead, the government is proposing four headline metrics are used; ‘fabric performance’, ‘heating system’, ‘smart readiness’ in addition to ‘energy costs’.

It said: “These metrics together convey the key, complementary aspects of building energy performance, allowing the user to distinguish where the home performs more or less well.”

The paper also asks for views on reducing the period for which an EPC is valid from its current 10 years. It said: “Reducing the validity period of EPCs could allow building upgrades, such as fabric changes, to be captured more frequently. This would provide prospective buyers and tenants with more accurate and up-to-date information to inform decision-making which may directly impact their cost of living.”

>>>>See also: Let’s hear it for the humble Energy Performance Certificate

The government is proposing requiring a valid EPC throughout a tenancy period, rather than requiring one when a property is re-let.

The paper said the government is not proposing to change headline metric used for non-domestic buildings - the Environmental Impact Rating - which measures modelled carbon emissions. However, it is asking for views on retaining it. 

The recommendations are among dozens in the consultation paper, which asks for feedback on 48 questions on different aspects of the energy performance buildings framework and how it could be changed.

Responding to the proposals, Rob Wall, assistant director at the British Property Federation, said the government should “think carefully” before changing the validity period of EPCs.

He said: “Reducing the validity period from 10 years, combined with a requirement that valid EPCs should be required throughout a tenancy period, will raise practical, logistical and cost challenges. It could also be disruptive to tenants.”

Wall added that EPCs only provide a prediction of a building’s energy performance and the government should also support the use of in-use metrics, such as NABERS UK to measure actual energy performance.

The consultation runs until 26 February.