Landlords across East Anglia are being warned to act now to bring their buildings into line with new energy efficiency rules - or risk fines of up to £150k.
Shawn Galliers, director of sustainability at East Anglia-based property and construction consultancy Ingleton Wood, warned measures to achieve the new standard - such as through boiler replacements and roof insulation - require time but the clock is ticking.
Landlords need to bring their premises up to an Energy Performance Certificate (EPC) rating of E or above by April 1 this year - unless they are registered as exempt.
The rules are part of the UK's bid to achieve net zero carbon emissions by 2050.
Currently, the rules apply only to landlords granting new leases for commercial premises except where the premises are registered as exempt under the Minimum Energy Efficiency Standards (MEES).
"While it may be tempting to only carry out the necessary upgrades to meet the new bare minimum standards, we are also cautioning against adopting a short-sighted approach, because the tightening of the MEES regulations doesn’t end in April 2023," he said.
"Under current government plans, the thresholds are set to rise again to a C rating by 2027 and a B rating by 2030."
Government estimates suggest around 10% of commercial buildings fall below an E rating. Official data for April to June 2022 reveals just 12% of EPCs lodged for non-domestic properties achieved a B rating or higher.
"We know carrying out sufficient energy efficiency improvements is a major challenge but it is imperative that landlords seek expert advice to find cost-effective solutions and factor MEES compliance into their financial planning," said Mr Galliers.
MEES was introduced in March 2015. Non-compliance is subject to a financial penalty based on 10-20% of the rateable value of the property between a minimum of £10,000 and a maximum of £150,00 per breach. Landlords also risk a publication penalty.
"Our message is to check what EPC ratings you have and consult the experts to work out a realistic plan to at least get your buildings up to scratch in time for April 2023.
Ingleton Wood - which has offices in Colchester and Norwich - has worked on more than 1,000 buildings to date to bring them into line with MEES regulations.
Measures have included installing air or ground source heat pumps, solar panels and LED lighting upgrades.
Mr Galliers warned companies not to be complacent about what is achievable.
"You can’t just swap a boiler for a heat pump if the building’s design or fabric doesn’t allow for it, for example. There might also be better cost-effective alternatives such as underfloor heating systems or roof insulation," he said.
"The practicalities, timescales and benefits – short-term and long-term – all need to be weighed up and carefully considered to stay ahead of ever-changing legislation this decade."
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