It is the hope of the EU’s legislation makers that the Energy Performance of Buildings Directive (EPBD) will have a similar effect on the markets for commercial and domestic properties. The UK has already felt the effects of the EPBD in the form of the new Part L of the Building Regulations. This resulted in the introduction of a National Calculation Method for CO2 emissions from buildings, and new air tightness testing rules.

But the next significant development from the EPBD will be energy performance certificates (EPCs) on construction, sale or rent of homes or offices. In the words of a circular from the Department for Communities and Local Government (DCLG): “Implementing the EPBD will encourage owners and tenants to choose energy efficient buildings when seeking new accommodation and to improve the performance of the buildings they occupy.”

Articles 7, 9 and 10 of the EPBD are the most significant for the UK construction and property management sectors. The first requires production of Energy Performance Certificates, recommendations and advisory reports when buildings are constructed, sold or rented out. Large public buildings must have Display Energy Certificates (DECs) which will be placed so that any visitors can see the energy efficiency level achieved by that building. Article 9 requires regular inspection and reporting on the energy performance of air conditioning systems, and Article 10 that this work is carried out by qualified or accredited energy assessors working in an independent manner.

The EPC is an asset rating of a building. According to DCLG which oversees the Building Regulations, the EPC: “Must show the asset rating of the building which is a numerical indicator of the amount of energy estimated to meet the different needs associated with a standardised use of the building.”

This means that calculating the EPC uses the same data required for Part L compliance – and is based on modelled energy use rather than metered. The EPBD requires that the EPC takes into account only the energy used for heating, hot water, ventilation, cooling, humidification and lighting. Although there is still some debate on exactly how these asset ratings will be calculated, it seems likely that the Simplified Building Energy Model (SBEM) will be a key part of the process.

By contrast, the Display Energy Certificate is based on actual energy used in a building. DCLG states: “The DEC includes a numeric indicator of the amount of energy consumed during the occupation of the building over a 12 month period. These operational ratings are to be derived from meter readings.”

The current plan is that DECs will only have to be displayed in buildings with a total useful floor area over 1000m², and where the occupier is a public authority or an institution which provides services to the public and is frequently visited by them for example public museums and swimming pools. These buildings will also have an Energy Performance Certificate.

Although they are only to be used in a narrow band of buildings, DECs offer a number of advantages over EPCs. Firstly, they are based on simpler calculations and more readily available data from installed meters. Perhaps more importantly, the DEC gives an indication of how a building is being managed and how well energy use is being controlled – not simply how it should perform in theory. For example, in the proposed A to G labelling system, a building may achieve an EPC of grade B, but its operational rating could be a D. However, this does highlight the problem that the operational rating is an historical record and when a new tenant takes over a building, the actual energy use could change with better (or worse) facilities management.

Although this all seems relatively straightforward, it seems that the government is leaving the arrangement of details rather late in the day. David Bleicher, Principal Research Engineer at BSRIA says that there are more questions than answers currently available about how ratings will work. “For example, energy performance certification must be carried out by individuals who are trained and qualified but the standard for training is still under development,” says Bleicher.

There are other issues yet to be considered. The use of the SBEM software (designed originally by BRE for compliance with Part L) for calculating asset ratings will require changes to the system. “SBEM uses a notional building based on Part L 2002 Building Regulations to work out a Building Energy Rate. For asset ratings, the comparison will be a reference building. This means that the system will have to incorporate different building types for benchmarking,” Bleicher explains.

There are also questions to answer about Display Energy Certificates. Although these are more straightforward to calculate, there is still some debate over what constitutes a public building. As Bleicher comments: “Are railway stations, run by Network Rail, public buildings, or private sector?”

But the big question of course is how much will energy certification really influence the property market? Estate agents were advising clients to put homes on the market before the initial June deadline for the introduction of HIPs. And the Royal Institute of Chartered Surveyors is attempting to halt the introduction of HIPs on the grounds that it’s an unworkable system. It looks as though the scheme will go ahead eventually, but it is difficult in today’s housing market to imagine consumers putting an energy rating high on the list of priorities when looking for a new home.

The commercial market may be different. Already large well-known brands are taking a firm stand on sustainability. M&S and Asda have made public commitments to being ‘greener’, with Marks and Spencer announcing a ‘five year sustainable retail partnership’ with BRE. Corporate social responsibility is the buzzword in today’s boardrooms and if something as simple as occupying an energy efficient HQ can win points with customers and shareholders then it seems likely that organisations will be shopping around for a ‘green’ lease.

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