The Energy Act 2011 and Commercial Landlords
Insight Contacts
Anita Gupta
Head of Energy & Infrastructure Group
DD +44 (0)161 603 5131
M +44 (0)7809 586 784
Add vCard View BiographyDate: 09/02/12
On 18 October 2011, the Energy Act 2011 received Royal Assent. One aim of the Act is to improve energy efficiency. There is one area in particular where it appears that the stick is to be used rather than the carrot, namely the provisions relating to commercial property.
The Act requires regulations to be made that will compel a landlord to achieve and maintain a specified level of energy efficiency for his property as set out in its energy performance certificate. If the landlord allows the level of energy efficiency to fall below the specified level, he will not be allowed to let his property until he has carried out prescribed energy efficiency improvements. A breach of the regulations may result in a fine.
The Act specifies that these regulations must come into force no later than 1 April 2018. Until regulations are made, there are a lot of uncertainties for commercial landlords, including whether their property will actually fall within the regulations (it appears that the types of commercial properties affected will be specified in the regulations), what level of energy efficiency they will be required to maintain in accordance with the energy performance certificate for the property and how long they will have to undertake energy efficiency improvements if their property is not compliant with their EPC, before being subject to sanctions.
The underlying message from this is that landlords need to start thinking about the energy efficiency of their buildings now to stay ahead of the game. If they do not, they face the risk of either not being able to let their property or having to carry out potentially costly improvements in a tight timescale.
Incidentally, similar provisions will apply to domestic premises, with the deadline for regulations being even earlier than for commercial properties, i.e. 1 April 2016, although fines will be limited to £5,000 for domestic properties.
If you require any further information, please do not hesitate to contact Clare Miller, Solicitor, on 0161 603 4968 or email clare.miller@dwf.co.uk
