For over 16 years, the Energy Performance of Buildings (EPB) framework has played a crucial role in enhancing building energy efficiency and reducing carbon emissions in the UK. However, as energy costs rise and climate change remains a pressing issue, the need for comprehensive reform has become undeniable. The UK Government’s commitment to achieving net zero by 2050 has driven a renewed focus on updating the EPB framework.
Timothy Holman, Head of Consultancy at TEAM Energy, examines the proposed changes outlined in the Government’s latest consultation, “Reforms to the Energy Performance of Buildings Regime.” These reforms seek to improve Energy Performance Certificates (EPCs), Display Energy Certificates (DECs), and TM44 air conditioning inspections, making them more effective and relevant in today’s evolving energy landscape.
Enhancing Energy Performance Certificates (EPCs)
EPCs have been instrumental in assessing building energy performance, influencing property transactions and guiding efficiency improvements. However, the current system, particularly for domestic properties, has notable shortcomings. It primarily focuses on theoretical energy use, often failing to capture a building’s actual energy performance.
The proposed reforms aim to modernise EPC metrics by incorporating additional factors such as energy cost, carbon emissions, and smart readiness. While no immediate changes are expected for commercial EPCs—already measured by a single carbon metric—new elements may be introduced in the future.
A significant uncertainty remains regarding the Minimum Energy Efficiency Standards (MEES). Under the previous Government, proposals were made to raise the minimum rating for leasing or selling a building from an E to a C, or even a B, by 2030. The new Government has pledged to review MEES under its Warm Homes Plan, with an anticipated transition to a C rating for both domestic and commercial properties. A consultation on these changes is expected soon, and updated legislation is needed swiftly to provide property owners with clarity on investment requirements.
Strengthening Display Energy Certificates (DECs)
DECs promote energy efficiency by displaying the actual energy consumption of public buildings, ensuring transparency and accountability. The proposed reforms seek to strengthen their impact by reducing the validity period for smaller buildings under 1,000m² from 10 years to a shorter timeframe.
This revision is essential to ensure energy performance data remains current and accurately reflects recent energy usage patterns. The accompanying Recommendation Reports will also have shorter validity periods, enabling building owners to make more informed energy management decisions. These changes are critical in advancing the public sector’s net zero ambitions and setting a benchmark for private buildings to follow.
As the UK approaches its net zero deadline, immediate action is needed to reduce building-related emissions. The current 10-year validity period for DECs does not support the necessary annual reporting of carbon reductions, highlighting the need for a more dynamic and responsive approach.
Improving TM44 Air Conditioning Inspections
TM44 air conditioning inspections ensure that systems operate efficiently and safely while identifying opportunities for energy savings. Proper implementation of TM44 recommendations can result in energy savings of 30-40%, with even simple adjustments, such as modifying system settings, delivering 10-20% reductions.
The proposed reforms will enhance the format and content of TM44 certificates and their accompanying reports to make them more practical and user-friendly. However, compliance with TM44 regulations has been inconsistent, with many organisations neglecting energy-saving recommendations.
While the reforms include increased fines for non-compliance, the proposed penalty remains a low fixed amount. This is particularly inadequate for larger systems, where the cost of obtaining a certificate often outweighs the fine. To drive real change, a more significant deterrent is needed to ensure widespread adherence to inspection requirements.
The Urgent Need for Reform
Buildings contribute approximately 20% of the UK’s total greenhouse gas emissions, making improvements in energy efficiency essential for meeting net zero commitments. The EPB framework, while foundational, must be updated to facilitate these critical advancements.
Encouraging businesses to reduce their carbon footprint is a key objective of the reforms. By providing more accurate and comprehensive energy performance data, organisations will be better equipped to make strategic energy efficiency investments. Additionally, stricter penalties for non-compliance and improved enforcement mechanisms are long overdue.
A Renewed Focus on Energy Efficiency
In recent years, energy efficiency has been pushed aside, despite the introduction of initiatives such as the Energy Savings Opportunity Scheme (ESOS) in 2014 and the Streamlined Energy and Carbon Reporting (SECR) framework in 2018. Reforming the EPB framework brings energy efficiency back into focus at a crucial time.
If implemented, these reforms will enhance the accuracy and relevance of EPCs, DECs, and TM44 certificates, helping the UK meet its climate targets. Beyond reducing carbon emissions, the updated framework has the potential to instil a culture of energy efficiency and sustainability across all sectors.