MINIMUM ENERGY EFFICIENCY STANDARDS (MEES)
Visit us at the RICS Commercial Landlord and Tenant essential update 2020
Three years after their introduction (see timeline below), April 2018, saw the introduction of the much-anticipated Minimum Energy Efficiency Standards (MEES) Regulations across England and Wales. We are here to guide you through to MEES-compliance.
To eliminate the risk of undertaking potentially costly works for marginal EPC rating improvements, we recommend modifications are only undertaken in consultation with a qualified consultant.
In his capacity as director and lead consultant at Core Sustainability, Daniel Montlake’s credentials and unequivocal experience – Chartered Surveyor, Energy Consultant (including Level 5 EPC assessments) and consultant to RICS as a MEES key speaker and policy advisor – ensures he and the team are best placed to conduct accurate and in-depth EPC surveys for you. Whether a single property or significant portfolio used for industrial, office, leisure, retail or residential, we offer strategic advice regarding MEES compliance.
To find out about key dates for the Minimum Energy Efficiency Standards (MEES) see graphic below:
When engaging with us for your MEES-focused EPC survey, as well as assessing your property’s existing rating, and depending on requirements, the report will include EPC improvement scenario modelling to determine the potential impact improvement works will have on the building’s EPC rating.
Our full-service commitment to you ensures we revisit once energy efficient improvement works have been completed to reassess and award the final EPC rating. This degree of service ensures you are best equipped to manage installations and achieve MEES-compliant ratings most efficiently.
Whilst there are penalties for non-compliance, our extensive experience has shown there are potentially significant commercial gains to be made through conscientious compliance. By increasing a property’s energy performance standards, not only should you enjoy reduced energy costs, we also foresee an improvement in the calibre of tenant and its degree of rent-elasticity.
MEES non-compliance commercial penalties
| < 3-month rental | > 3-month rental |
|---|---|
| Fine: £5,000-£50,000 Equivalent to 10% of the rateable value |
Fine: £10,000-£150,000 Equivalent to 20% of the rateable value |
The lease between landlord and tenant remains valid in circumstances where a property is found to be in breach of MEES regulations and/or a penalty has been imposed.
It is worth noting that, despite their 10-year validity, due to varying degrees of assessment quality and updates in software capabilities, it is widely estimated that a significant percentage of EPC ratings have been miscalculated. In many known instances, the variance has resulted in ratings being as much as two grades lower than initially reported. To ensure compliance, we strongly advise the reassessment of all properties where this may apply.
Included in our MEES consultation service is:
Remote support by your qualified assessor
Onsite survey
Building modelling in accredited software
Confirmation of current EPC rating
Current rating advice
Lodgement of EPC certificates
EPC improvement reporting including:
- Recommendations of works separated into scenarios where applicable
- Post-works EPC rating estimation
- Post-works onsite survey
Final EPC rating and lodgement of EPC certificates
Read here a recent article in the RICS Property Journal The stick that became a carrot about MEES and the potential impact on the market.
MEES - Potential Exemptions
Read this link here to know more about exemptions.
| Seven-year payback rule | Consent | |
|---|---|---|
| The cost to implement energy efficiency improvement works - as advised by a qualified, independent contractor - are not estimated to pay for themselves through energy savings within seven years. | The occupational tenant, or relevant third party, refuses consent or access, or elicits unreasonable conditions. We advise, where possible, improvement works are undertaken during vacant periods to minimise disruption to the tenant and to avoid consent issues. | |
| EPC exemptions | Devaluation | |
| Places of worship, standalone buildings of 50m2 or less, temporary buildings, non-residential buildings with low energy demand. | The cost to implement energy efficiency improvement works - as advised by a qualified, independent assessor - would reduce the property's capital by > 5%. |