Energy Performance Certificates: Fit for purpose?

This article features in the autumn 2024 issue of the Channel Islands Property Newsletter.

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Last year in the autumn edition of the Channel Islands Property Newsletter we looked at green leases and Energy Performance Certificates (EPCs). As we explained at that time, an EPC is a performance certificate which sets out how energy-efficient a property is and gives it a rating from A (very efficient) to G (inefficient) using information about how the building was built and how it is heated.

The purpose of an EPC is intended to provide a standardised way to compare properties. At that time, we flagged that regulation might be on the horizon requiring more onerous energy efficiency regulation, such as the minimum energy efficiency standards (MEES) giving minimum EPCs which will need to be built into leases.

The UK introduced EPCs in 2007 and requires properties to have an EPC rating of at least E to be let. This requirement has driven property owners to make necessary improvements, ensuring buildings meet minimum energy efficiency standards and reducing overall carbon emissions.

A recent report by Which? found that the system, introduced in 2007, is in desperate need of reform and that the EPCs produced were unreliable and inaccurate, with many properties being rated in the wrong EPC band. 

EPCs in Jersey and Guernsey

The specific form of an EPC regime in Guernsey is still yet to be decided, although it is expected that some form of energy performance assessment will be in place before the 2050 when Guernsey is aiming to be carbon neutral.

It is expected that this will draw from the UK EPC model and it would be useful if the experience of the UK to date could be considered when this is being developed. In Jersey, a mandatory EPC regime was scheduled for 2026. It is now understood that this may be delayed whilst the government prioritises updating building byelaws and carbon emission standards.

Despite this potential delay, subsidies for home energy audits (currently £100 for one-two bedroom properties and £150 for larger properties) will remain available for Jersey residents, decreasing as we move towards a mandatory regime.