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Minimum Energy Efficiency Standards (MEES)

With Minimum Energy Efficiency Standards (MEES) soon coming into effect, organisations need to take action to ensure that any properties held are fully compliant as soon as possible.

Under the MEES legislation, after 1st April 2018, any property with an Energy Performance Certificate (EPC) rating lower than ‘E’ cannot be rented out to new tenants, or renew any existing tenancy contracts until they obtain at least an ‘E’ rating. There are still many landlords in danger of falling foul of the new legislation and will face significant financial consequences. A report published in 2017 stated that there are 115K commercial properties in the UK with an F or G EPC rating – totalling 17.5% of all commercial buildings.

Currently, there are still as many as 300,000 landlords in danger of non-compliance and anyone who does not comply with these regulations will face significant penalties. If landlords continue to let a property in breach of MEES for up to three months, they will face a fine of 10% of the property’s rateable value, up to a maximum of £50,000. Letting out a non-compliant property for longer than three months will result in a fine of 20% of the property’s rateable value, which is capped at £150,000 – so clearly, it pays to be compliant.

There’s also a seven-year payback test, meaning that you will only be required to make energy efficiency improvements that have an expected payback of seven years or less. Measures are likely to meet the payback test which is good news for landlords, as it means that any measures they implement as a result of the MEES legislation should provide sufficient energy savings to prove worthwhile.

Ensuring that you are compliant before the MEES deadline offers a wide range of benefits and is easily achieved with support from Inenco and includes:

  • Avoiding unwanted fines and leasing restrictions
  • A higher asset value for your property
  • A reduction in energy costs and maintenance
  • A better return on investment (ROI)
  • Improved carbon reduction (Did you know commercial properties within the UK currently contribute 17% of the UK’s total emissions?)
  • Achieve better Feed-in-Tariff (FiT) rates and more…

 

If you have an EPC rating of F or G, you will need to take immediate action to improve your rating as soon as possible. It’s a good idea to put an energy efficiency plan in place, but this doesn’t need to be complicated or expensive. Making small changes, such as replacing traditional lighting to LED lighting, can make a big difference to the efficiency of a building. When assessing the affordability of any efficiency measure, you should also think about the energy savings you could make as a result.

Why choose Inenco?

We know that it can be difficult to know where to begin when it comes to creating and implementing an energy efficiency plan, and with the MEES deadline looming it’s important that landlords are prepared.

Inenco will ensure your organisation meets all legislative obligations and we will aim to identify extra savings and benefits to mitigate upcoming incremental costs. With 50 years experience, our industry experts can work with you to ensure that your properties are compliant and improve your energy efficiency now and into the future

 

Need support with your MEES compliance?

Get in touch today on 0845 46 36 26 or email enquiries@inenco.com