Making Sense of Energy Compliance

Getting a handle on energy compliance allows businesses, building managers and landlords to make significant energy savings, as well as gaining all-important mandatory certifications.

In this blog post, we unpack the themes from the latest Stroma Insights podcast where our resident Stroma expert Stuart Oakes is joined by guest speaker Sarah Edwards from our sister company, ACI Reports. In this episode, the pair break down the key requirements surrounding three areas of energy compliance: TM44 air conditioning inspections, Energy Performance Certificates (EPCs), and Display Energy Certificates (DECs).

You can listen to the episode in full below, or read on for an overview of your energy obligations and how you can avoid unwanted fines.

Episode 6: Making Sense of Energy Compliance

Key Takeaways

There are three areas of energy compliance to understand:

• TM44 air conditioning inspections examine your cooling system as energy efficient as possible day-to-day Energy Performance Certificates (EPCs) show the potential energy performance of a building to allow comparison with other buildings and potential improvement strategy
• Display Energy Certificates (DECs) show the reality of how much energy a publicly owned building is actually using
• Acting on any applicable recommendations means your building will become more efficient, your carbon footprint will drop, and you will stay compliant
• Certificates are logged on a centralised government database which will show if certificates have expired
• Local authorities can enforce regulations and penalties to those who fail to comply

TM44 Air Conditioning Inspections: What You Need to Know

Air conditioning is a significant use of energy for buildings in the UK and therefore it is crucial to make sure the system is working as efficiently as possible. A TM44 inspection aims to tackle this head on, essentially performing an energy efficiency “health check” for your air conditioning.

The terminology TM44 refers to guidance documentation produced by the Chartered Institution of Building Service Engineers (CIBSE) underpinning the legal requirements of energy inspections of air conditioning systems. The legislation currently in place comes from the Energy Performance of Buildings Regulations which is in force in England and Wales.

Which Buildings Require a TM44?

Any buildings with air conditioning systems with a total output of 12kW or above must have a TM44 inspection carried out by an accredited assessor.

The threshold applies to the entire system capacity, so the capacity of any individual units must be combined in your calculation.

What the Inspection Involves

An accredited assessor will make a visit to examine the system’s operating efficiency. This includes a visual inspection of the external condensers, the controller systems, the maintenance records, and an evaluation of whether the system is appropriately sized for the space.

Following the site visit, the assessor inputs the data into approved government software to produce a TM44 certificate and report which is lodged on the government register, visible to be viewed by all, and valid for a total of five years. The report will also highlight any advisories which could improve energy efficiencies.

The Consequences of Failing to Comply

If you are caught without a TM44 certificate, enforcement is typically by trading standards who can issue fines of up to £300 per offence. This can be repeated weekly until the inspection is completed and the government database has been updated so the costs can soon mount up.

If you aren’t sure whether you have a valid TM44 certificate in place, get in touch with ACI Reports who can check the database. In case of an expired certificate, don’t worry. Our accredited team can quickly arrange an inspection.

Display Energy Certificates: For Publicly Owned and Publicly Visited Buildings

A Display Energy Certificate (DEC) shows the actual operating efficiency of a building. The calculation is based on the measured energy usage of gas, electricity and other fuels over the previous 12-month period.

The Government dictates that DECs should be displayed in buildings occupied by public authorities and that are frequently visited by the public. This applies specifically to larger buildings sized at 250m2 or above.

An accredited energy assessor can produce a DEC and advisory report following a site visit, providing an energy rating of the building from A to G, where A is very efficient and G is the least efficient.

Thresholds and Advisories

If your building is over 1,000m2, the DEC must be renewed every year. If your building is between 250 and 1,000m2, the DEC is valid for 10 years with a desktop exercise being carried out every year.

The accompanying advisory report gives organisations valuable guidance into potential investment in the building and a roadmap to increasing energy efficiency.

Penalties You Could Face Without a Valid DEC

Any buildings failing to display the certificate when required could face up to £1,500 or £1,000 for failing to have the advisory report available on request. Again, this is enforced by local authorities.

Non-domestic Energy Performance Certificates

A commercial Energy Performance Certificate (EPC) shows the energy efficiency of a building, in terms of its construction, systems and fabric. The certificate is legally required whenever a building is constructed, sold or let.

Again, these are rated from A to G with A being the most efficient, and the certificates are valid for ten years.

Implications of Broader Legislation such as MEES

Under Minimum Energy Efficiency Standards (MEES), landlords cannot legally let a commercial property with an EPC rating lower than E (bar some registered exemptions).

The Government has also proposed pushing towards targeting EPC B by 2030 which means many existing many existing commercial buildings in the UK will require upgrades ahead of the deadline.

If a commercial landlord ignores the MEES government frameworks, they risk a penalty of up to £150,000 depending on the property value as well as damage to their reputation with details published on a public register.

Beyond Compliance: The Benefits of Energy Certificates

Putting penalties to one side, the biggest motivation to keeping up with energy compliance is the huge opportunities for saving energy. With energy costs high and expected to get higher, energy efficiency really does matter.

In addition to direct cost reductions, having a compliant building helps you to stay ahead of the market, especially when this is considered as part of a wider strategy. At Stroma, our energy compliance consultants offer a range of energy performance services to bolster your energy efficiency.

Safeguarding Your Reputation

The population is becoming increasingly aware of energy compliance and any non-compliance could damage your credibility. This is especially so for government-owned buildings where scrutiny is higher and taxpayer money is at stake.

Gaining a valid TM44 or a high EPC and DEC rating sends a clear message that you are taking energy efficiency seriously.

Becoming More Attractive to Tenants 

More than ever, we hear that tenants are now asking for copies of TM44 reports and certificates when negotiating leases, and investors are looking at EPC ratings as part of their ESG assessments.

Buildings with good EPCs generally cost less to run and are more desirable, ultimately affecting the property's rental value and marketability.

If you’re questioning whether your building is falling short of energy compliance, arrange a consultation with Stroma today to tackle regulatory requirements head on. We have years of experience in supporting businesses to become fully compliant and energy efficient.