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Recent Carbon Trust research shows non-domestic buildings account for 18 per cent of the UK’s overall carbon emissions. The government has already outlined its plan to become the greenest in history, and reducing energy consumption generally is one of the EU’s main goals.

The UK has pledged to reduce its CO2 emissions by 20 per cent in time for 2020 and a major part of this strategy is the introduction of the Green Deal, a home energy efficiency policy aimed at reducing household energy wastage. It will be inconceivable for Chris Huhne, in his role as Secretary of State for Energy and Climate Change, not to explore the opportunities to decrease carbon emissions from inefficient commercial property.

There is significant potential for reducing consumption as 40 per cent of our energy is consumed in buildings by heating, hot water, cooling, ventilation and lighting. It is said that commercial buildings pump out more than a third of London’s carbon emissions and, faced with such figures, it is inevitable commercial EPCs will follow a similar path to residential EPCs and become a much more widely recognised tool in the fight against climate change.

Lack of awareness
If you are selling, renting or building a commercial property you need a commercial EPC. Some industry experts suggest, however, there is only a 20 per cent uptake - meaning 80 per cent of commercial properties are not being assessed as per legislation. This is largely due to lack of awareness.

Although the commercial EPC requirement has been mandatory since 2008, many private landlords have chosen to ignore it. The penalty for failing to make an EPC available to a prospective buyer or tenant when selling or letting non-dwellings is fixed, in most cases, at 12.5 per cent of the rateable value of the building. It is important that landlords don’t presume it is the responsibility of the letting agent – it is not.

The fines are supposed to be enforced by trading standards but at present the clampdown isn’t thorough. It may be for this reason a large proportion of landlords and agents are yet to get into the routine of EPC assessments and why there is still a high proportion of property owners who are completely unaware of the legislation. Worryingly, many commercial property professionals state they have no intention of complying with commercial EPC guidelines and will take the risk of substantial fines.

I would warn those agents: EPCs have gone past the phasing-in stage now so it is more than likely there will be a clampdown in the near future with tougher penalties imposed.

The future of EPCs
From December this year the second cast of the Energy Performance of Buildings Directive (the EPBD), the EU legislation, will be introduced. It is likely to state that all property marketing brochures, including commercial, must display the EPC graph. This will lead to a huge uptake in commercial EPCs as they can no longer be swept under the carpet.

Saving energy is becoming big business. Toolkits helping businesses cut down their carbon emissions and save money on their energy bills in the process are growing in popularity.

The significant level of emissions produced by commercial property in the UK, coupled with an increasing number of businesses and organisations looking to maximise their corporate and social responsibility programmes, will mean the commercial EPC will play an increasingly important role moving forward.

The EPC is the only mechanism available to accurately measure energy performance and the recommendations contained within the EPC will be used by government to meet strict emissions targets.

With residential property it is proposed that recommendations contained within the household EPC will form the basis for loans to be granted for energy efficiency improvements. It is probable commercial property grants or loans will, in time, be based on the same criteria.

The exceptions
There are exceptions where an EPC is not required but these are few and far between. Examples include places of worship, non-residential agricultural buildings with low energy demand and temporary buildings planned for less than two years’ usage. On the other hand, a commercial property which is split into parts, to be used as separate accommodation for instance, may need separate EPCs.

Currently the EPC is usually commissioned at the end of the sales process at the same time as the conveyancing, as the solicitor will be unable to complete the transaction without this documentation being in place. However, this goes against the intention of the EPBD which says the EPC must be made available to the prospective purchaser or tenant to help them make an informed decision. This is crucial in the commercial sector as a poorly performing commercial building will impact greatly on future energy bills.

Added to compliancy issues and helping the environment, the EPC for commercial property buyers is about saving money. In this sense, a current EPC can be an additional marketing tool for the agent to promote the efficiency of the commercial property in question. Undoubtedly, energy efficiency is moving up the commercial property wish-list for businesses re-locating.

EPC providers can do more than issue certificates and help you obey rules. They can give valuable recommendations for improvements which will benefit businesses and the environment and cut costs in the long-term.

As the nature of commercial buildings varies vastly, some people hastily jump to the conclusion that obtaining a commercial EPC will be a complicated process. With the right help it can be very simple and compared to the potential fines for not having one, cost-effective too.

Marc Blomfield is Managing Director of The National EPC Company.