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New Minimum Energy Performance Standards for non-domestic landlords

decc logoNew rulings dictate that all privately rented non-domestic properties with an EPC rating must meet Minimum Energy Performance Standards (MEPS) in order to continue letting.

While the final regulations have not yet been announced, new regulations are due to be enforced under the Energy Act 2011 from April 2018.

This is the next step in energy efficiency after the recent closure of the ESOS scheme that has been imposed on large businesses. We are still unaware of what will happen to those businesses that have not complied.

The Energy Savings Opportunities Scheme dictates that all qualifying businesses must have their buildings and transport audited to see if they are able to make their assets more energy efficient.

The MEPS ruling however does enforce energy efficient improvements by offering landlords a loan to pay for improvements that will pay for themselves subsequently through energy cost savings. It’s expected that the MEPS will be in line with current EPC rating ‘E’.

So any properties failing to meet this, will be required to implement measures to improve the property’s performance subject to these improvements being ‘cost-effective.’ Any work that is not ‘cost-effective’ can be contested and may not need to be carried out.

These standards will be enforced by Trading Standards Officers, who will decide if a penalty should be imposed or not. Penalties range from a £5,000 fine to £150,000 fine depending on the property. Should a landlord receive a penalty, they’ll have 28 days to appeal it.

In most cases, if a property doesn’t reach MEPS then they will no longer be allowed to let it unless they are unable to make improvements due to the tenant refusing permission.

While the DECC have provided some guidance about the new regulations, it’s difficult for landlords to understand exactly how they’re affected and what they are required to do before 2018.

That’s where Business Juice can help. With years of expertise in the energy market and industry regulations, we are best placed to advise our customers on the task at hand.

Don’t get caught out by new rulings and receive a hefty fine!

Call us on 0800 051 5770.