The Department for Energy Security & Net Zero (DESNZ) has published an interim response on commercial Minimum Energy Efficiency Standards (MEES) in England and Wales. The consultations, published under the previous government in 2019 and 2021 sought to strengthen the trajectory of the non-domestic Private Rented Sector MEES up to 2030.

EPC B rating from 2031

The interim response outlines the Government’s intention that from 2031 all private rented commercial buildings over 1,000 square metres will need to reach an EPC B rating in England and Wales. This is in all cases where reaching this energy efficiency standard is deemed to be cost effective.

Where a building is less than 1,000 square metres, it will continue to be subject to the current minimum EPC E energy efficiency standard.

Transition

There was an interim EPC C milestone proposed for 2027. This will now not be taken forwards, to ensure that both landlords and tenants have enough time to make the necessary efficiency improvements in the right way.

RICS previously highlighted concerns over the practical usefulness of the 2027 interim date, given landlords could strategically decide that there is no point in upgrading to EPC C at that juncture given that they will have to ultimately upgrade to EPC B. This would have added substantial pressure to the retrofitting industry.

The single date for EPC B by 2031 should now bring simplicity and clarity to the property industry.

Flexibility mechanisms

Existing flexibility mechanisms will remain. This includes the seven-year payback test, which is where the cost of works required to reach the minimum EPC rating is more than the expected value of saving on energy bills over a period of seven years.

Secondary legislation

Currently, the proposed changes, which can be read in full here, are subject to secondary legislation, which is yet to pass through Parliament. There will also be further detail on the proposals in a full government response in due course.