Government consults on energy efficiency for non-domestic properties

Government consults on energy efficiency for non-domestic properties

How will company voluntary arrangements fare in 2021?

Two consultations have been opened up by the government on energy efficiencies and non-domestic properties. The first consultation seeks views on the proposals to increase the Minimum Energy Efficiency Standard (MEES) to a B rating by 2030. The second consultation seeks views on the government’s proposal for a national performance based policy framework for assessing energy use and carbon emissions.

 

 

Consultation on a proposed framework to implement and enforce the target for MEES to increase to a B rating by 2030

The requirement that a new tenancy of a non-domestic property must have a minimum rating of E has applied since 1 April 2018. From 1 April 2023, this requirement will extend to all non-domestic properties, even where there has been no change in tenancy. However as part of the government’s commitment to bring all emissions to net zero by 2050, it has been clear that the minimum rating would increase at some point in the future.

Last year, the government confirmed that its preferred future trajectory for non-domestic MEES is for the minimum rating to be a B rating by 2030. The new consultation sets out proposals on how to achieve this. The proposal is to have a stepped increase in the minimum rating in order to achieve the minimum B rating by 2030 and as part of this, there would be a minimum C rating requirement by 2027. There is particular focus on improving the implementation and enforcement of MEES and ensuring that the policy can be delivered in practice.

Consultation on a performance-based policy framework in large commercial and industrial buildings 

The second ongoing consultation set outs the government’s plans to have a national performance-based policy framework for assessing energy use and carbon emissions in commercial and industrial buildings over 1,000m² in England and Wales. There would be a requirement to obtain an annual rating, which would be achieved by benchmarking a property against similar building types, and publishing the rating online would be mandatory. The initial phase of the framework would apply to commercial offices over 1,000m², with two more phases to cover the remaining commercial and industrial sectors. Both building owners and tenants who occupy a building will be affected.

Further information

Both consultations close on 9 June 2021. Click on the links below for further details including how to respond to the consultations:

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