The no stress guide to Minimum Energy Efficiency Standards

The Minimum Energy Efficiency Standards (MEES) for non-domestic buildings come at a turbulent time for the UK. Political instability means that the future of much legislation is uncertain, while investment in green technologies is being threatened as government incentives are withdrawn. Stephen Booth, Building Services and Industry Sales Manager at Xylem UK, cuts through the issues to take a look at MEES and what landlords can do to meet these standards.

The phrase “government introduces new legislation” can strike fear into the hearts of even the most stoic of landlords, particularly if that legislation carries hefty penalties  for non-compliance. It’s understandable, then, that the new Minimum Energy Efficiency Standards ( MEES), which were designed to provide a clear and consistent message on minimum standards for non-domestic buildings, have got many landlords talking.

Minimum standards they may be, but clear and consistent they most certainly are not. Cross-referenced with additional regulations from the Building Regulations 2010 and the Energy Performance of Buildings 2007 and 2012, as well as the rules surrounding Energy Performance Certificates and the obligation to meet other legislative targets, the MEES present an Herculean task for anybody trying to make sense of it all and translate government spiel into tangible objectives, actions and results. Nevertheless, from 2018 onwards landlords will be under an obligation to meet these standards, and this may not necessarily be a bad thing.

Why the focus on non-domestic?

Non-domestic buildings have come under particular scrutiny recently as being responsible for 12 per cent of the UK’s emissions. To give this some context, transport as a whole was responsible for 24 per cent, according to a 2015 report by the Department for Business, Energy and Industrial Strategy[1]. A disproportionate number of these buildings are also holding inadequate ratings for their energy performance, with around one in five currently operating with an Energy Performance Certificate (EPC) of F or G. This is largely due to ageing buildings using inefficient or inadequate heating and water systems. Under the MEES, all non-domestic buildings will soon be required to hold no less than an E rating for their EPC certificate.

What is an EPC?

An Energy Performance Certificate is a rating given by an accredited energy assessor based on a building’s construction, type and relevant fittings, such as heating, insulation or double glazing. An EPC assessment doesn’t discriminate between new and old equipment, but rather evaluates how much each system costs to run.  Therefore, no matter how shiny and new your heating and water systems may be, they will receive a low rating if their running costs are in any way excessive.  EPCs are important because they allow prospective tenants to gain an idea of the general running costs of the property, and every landlord of a non-domestic building needs to supply one.

Meeting the minimum

As a landlord requesting an EPC assessment can be costly and time-consuming, and it’s often hard to predict what kind of rating your property will receive. Therefore, you should consider conducting a full energy audit before applying for an EPC assessment. This will allow you to analyse your systems from the inside out and see what’s working, and what’s letting the side down, in order to meet the E rating, or above.

Each building is judged on its own merits, but for systems under 25 years old, improving your EPC rating could be as simple as retrofitting existing systems with efficiency-enhancing technology, such as variable speed drives. For systems older than 25 years, we often recommend replacing ageing or inadequate features, which may not reap the full benefits of retrofitted technologies. By conducting an energy audit before committing to an EPC assessment, you can target the areas of your systems that need replacing or enhancing, which will allow you to meet or exceed an E rating for your building.

Consider the variables

A simple way to help improve the efficiency of your building is to retrofit it with variable speed drives (VSD) such as Lowara’s Hydrovar. Most water and heating systems currently work with fixed speed technology. This means that the system runs at one consistent level whenever it is used, no matter what it is being used for. This is particularly problematic for non-domestic buildings. For example, one person using the shower on the fourth floor in a building with no VSD, will use as much energy as ten people on each floor where a VSD has been fitted.

Variable speed drives for your water systems are easily retrofitted to existing systems – in many cases you simply attach them to the top of a pump.  As the name suggests, they vary the flow and power of the water depending on where it is being used, and by how many people.  This is an easy and cost-effective way of hitting the targets for MEES, and keeping bills down.

Can I be exempt from MEES?

There are five cases where landlords and their buildings may be exempt from MEES.  First, the landlord must be able to show that any changes needed in order for the systems to meet the required efficiency would result in excessively high costs. They may also be exempt if these changes will negatively impact the value of the property, or if they could damage the structure of the building.  Landlords can also apply for exemption if they have been unable to receive any required consent from third parties, such as their tenants, although they must be able to show that reasonable efforts have been made to try and achieve consent. Finally, new landlords will have a six-month respite before they are required to meet MEES. 

 If landlords meet any of these criteria, they will be added to an exemption database.  However, be aware that any meaningful changes to your tenants or the structure of your building may require you to file for exemption again.

Where do we go from here?

The MEES are certainly a step in the right direction, as it’s important that landlords strive to improve the efficiency of their buildings. After all, a more efficient heating and water system would mean significant cost savings for both landlords and tenants. 

 However, are the MEES as “clear and consistent” as they claim to be?  This is certainly up for debate. The legislation on top of regulation and certification does leave room for perhaps a little too much interpretation. If you dig a little deeper, you can even uncover loopholes and contradictions that could cause a few headaches further down the line. For example, there may be instances when meeting an E rating could come at the cost of a good Environmental Impact Rating!  This is because of conflicting bases for evaluation, and it might be worth debating what the true measure of efficiency is – economy of cash, or economy of carbon – in the future.

 There’s a lot to take into consideration here, and the penalties for non-compliance, barring any exemptions, can be severe. However, by partnering with an expert in heating and water systems, such as Xylem, to improve your infrastructure in a cost-effective way, you can feel confident that this piece of government legislation will benefit both you and your tenants in the long-term.