A tale of two buildings: are EPCs a true indicator of energy efficiency?

Energy Performance Certificates (EPCs) are not enough by themselves to deliver the government’s targets to de-carbonise the UK’s built environment, says Jones Lang LaSalle in a joint report with the Better Buildings Partnership, a collaboration between leading commercial property owners in London and allied organisations. Whereas EPCs focus on the ‘design intent’ or theoretical energy efficiency, the firms say emphasis should be put on the measurement and achievement of lower actual energy consumption in buildings.

The report uses two London office properties for comparison: Ropemaker Place, which has an EPC rating of ‘B’, and 10 Exchange Square, the rating for which is ‘E’. While you might expect Ropemaker Place therefore to be more energy-efficient, the report says that 10 Exchange Square is actually 66% more efficient in terms of actual energy consumption.

“As surprising as this is, this scenario is far from unique, with similar findings being found in a number of buildings across London,” the report points out. It says the area of actual energy consumption is currently neglected by government policy and puts forward the case for introducing mandatory Display Energy Certificates (DECs) for commercial property. These are based on actual metered consumption. While EPCs do help to set goals for the improved design and refurbishment of buildings, there is little or no correlation between EPC ratings and actual energy performance, it argues. The research thus questions how effective the government’s proposed minimum performance standards will be in reducing actual energy consumption and associated CO2 emissions.

The report also says it is crucial that the property industry understands the mutual benefit to occupiers and to owners of a more efficient building: the owner of an efficient building can offer a more attractive space to prospective occupiers, who in turn benefit from reduced energy costs. “It is the security of the lease that will enable the owner to justify the capital expenditure needed to improve the performance of the building,” the report adds. The Better Buildings Partnership has identified key tools to enable occupiers and owners to work together on this issue, including an examination of the role that managing agents can play; better metering and monitoring; frameworks to enable dialogue between the parties; the agreement of financing arrangements; and the setting-up of Green Building Management Groups. The report includes a number of easily accessible toolkits available to owners and occupiers to help to achieve successful collaboration.