The Minimum Energy Efficiency Standards (MEES) Regulations 2015 - non domestic - Print version

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From 1 April 2023, non-domestic rental properties will have to meet the minimum E rating even if they are already tenanted.
The regulations have been introduced to improve the energy efficiency of buildings in the domestic and non-domestic private rented sector (in England and Wales).

Trading Standards are responsible for enforcing the regulations in relation to non-domestic premises.

Since 1 April 2018, all properties that are being offered for let must have a minimum E rating on their Energy Performance Certificate (EPC).

This means that it is now prohibited to:

  • offer a new tenancy for an F or G-rated property
  • unless it meets one of the limited exemptions.

The MEES regulations rely on the EPC framework contained within The Energy Performance of Buildings (England and Wales) Regulations 2012. These rules required that all properties required a valid EPC (unless exempt) when offered for sale or rent.
If the property does fit an applicable exemption, this should be registered on the PRS national Exemption Register [https://prsregister.beis.gov.uk/NdsBeisUi/used-service-before]. Landlords and commercial letting agents can get advice or support on the MEES regulations, or Energy Performance Certificates. Please contact the Business Compliance team.

Domestic properties

The MEES rules relating to domestic properties are enforced by the Council’s Private Sector Housing team. For more information, visit their Domestic MEES advice page [https://www.coventry.gov.uk/housing-enforcement/private-sector-housing-enforcement-policy/6].

Further sources of advice

A guide to the Private Rented Property minimum standards [https://www.gov.uk/government/publications/the-private-rented-property-minimum-standard-landlord-guidance-documents] has been produced by Department for Energy Security and Net Zero [https://www.gov.uk/government/organisations/department-for-energy-security-and-net-zero] and Department for Business, Energy & Industrial Strategy [https://www.gov.uk/government/organisations/department-for-business-energy-and-industrial-strategy]

 

Business Compliance Team

Open 9am–5pm Monday to Friday (excluding bank holidays)

Energy Performance Certificates

You must have an EPC if:

  • you rent out or sell the premises
  • a building under construction is finished
  • there are changes to the number of parts used for separate occupation and these changes involve providing or extending fixed heating, air conditioning or mechanical ventilation systems

You can be fined between £500 and £5,000 based on the rateable value of the building if you don’t make an EPC available to any prospective buyer or tenant.

When you must display one

You must display an EPC by fixing it to your commercial building if all these apply:

  • the total useful floor area is over 500 square metres
  • the building is frequently visited by the public
  • an EPC has already been produced for the building’s sale, rental or construction

How much it costs

The cost of an EPC will depend on the building being assessed. All EPCs are valid for 10 years.

How to get a certificate

You can only get an Energy Performance Certificate (EPC) from a commercial energy assessor [https://www.gov.uk/get-new-energy-certificate].  
The type of assessor you’ll need will depend on the complexity and features of the building. If you need advice on choosing one, speak to a commercial (non-domestic) energy assessor or contact the approved accreditation scheme they belong to.
Landlords and commercial letting agents can get advice or support on the MEES regulations, or Energy Performance Certificates.
Please contact the Business Compliance Team.

Business Compliance Team

Open 9am–5pm Monday to Friday (excluding bank holidays)

Legislation and penalties

The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 establish a minimum level of energy efficiency for privately rented property in England and Wales.
Requirements are in force from 1 April 2018. This means that from 1 April 2018, landlords of privately rented property in England or Wales must ensure that their properties reach at least an Energy Performance Certificate (EPC) rating of E before granting a new tenancy to new or existing tenants.
These requirements will apply to all private rented properties in England and Wales, even where there has been no change in tenancy arrangements from 1 April 2023 for non-domestic properties. 
Trading Standards are responsible for enforcing the regulations in relation to non-domestic premises.

Since 1 April 2018 all properties that are being offered for let must have a minimum E rating on their Energy Performance Certificate (EPC).

This means that it is now prohibited to offer a new tenancy for an F or G rated property unless it meets one of the limited exemptions

Penalties for non compliance
Non compliance Penalty
Providing misleading information Financial penalty not exceeding £5,000 and publication of non-compliance
Renting out a non-compliant property for less than 3 months 10% of rateable value with a minimum penalty of £5,000 and a maximum penalty of £50,000 and publication of non-compliance
Renting out a non-compliant property for more than 3 months 20% of rateable value with a minimum penalty of £10,000 and a maximum penalty of £150,000 and publication of non-compliance

 

Business Compliance Team

Open 9am–5pm Monday to Friday (excluding bank holidays)

Exemptions from the energy efficiency regulations

The Private Rented Sector (PRS) Exemptions Register is for properties which:

  • are legally required to have an EPC
  • are let on a relevant tenancy type
  • cannot be improved to meet the minimum standard of EPC band E for one of the reasons set out
    • ‘7 Year Payback’ Exemption
    • ‘All Improvements Made’ Exemption
    • ‘Wall Insulation’ Exemption
    • ‘Consent’ Exemption
    • ‘Devaluation’ Exemption
    • ‘New Landlord’ Exemption    

Visit the GOV.UK - Guidance on PRS Register [https://www.gov.uk/government/publications/private-rented-sector-minimum-energy-efficiency-standard-exemptions/guidance-on-prs-exemptions-and-exemptions-register-evidence-requirements] to find more information on exemptions and how to register them. 

You don’t need an Energy Performance Certificate (EPC) if you can demonstrate that the building is any of these:

  • listed or officially protected and the minimum energy performance requirements would unacceptably alter it
  • a temporary building only going to be used for 2 years or less
  • used as a place of worship or for other religious activities
  • an industrial site, workshop or non-residential agricultural building that doesn’t use much energy
  • a detached building with a total floor space under 50 square metres
  • due to be demolished by the seller or landlord and they have all the relevant planning and conservation consents

Vacant buildings and demolition

A building is also exempt if all of the following are true:

  • it’s due to be sold or rented out with vacant possession
  • it’s suitable for demolition and the site could be redeveloped
  • the buyer or tenant has applied for planning permission to demolish it

Business Compliance Team

Open 9am–5pm Monday to Friday (excluding bank holidays)

Improving the energy efficiency of your properties

We have ambitious plans to make Coventry a net zero city by 2030.
Net zero means having a balance between the amount of greenhouse gases we put into the atmosphere and those we take out.
We have already committed to reducing the environmental impact of our own buildings, operations and transport.
However, to achieve our net zero goal and help prevent the severe effects of climate change we all need to lower our greenhouse gas emissions.

The benefits of going green    

As one of the more than 12,000 businesses in Coventry, we ask you to join us in making our city an even better place to live and work. No matter how small your business, your actions can make a big difference to the future of our city.
As a green business, that doesn’t negatively impact the environment, you can:

  • help protect the planet for future generations
  • enjoy incredible opportunities for business growth in the new green economy
  • save you money on energy costs

Save costs and increase resilience

Businesses are facing increasingly higher utility bills due to volatility in the energy market.
The Climate Change Levy has also imposed an additional cost on SMEs that rely on non-renewable energy sources such as gas.

Attract new customers

Improve your business reputation and competitiveness. Consumers are becoming more selective and, more than ever before, are looking for products that are "green", supplied by businesses that can prove they are actively taking steps to reduce their environmental impact’. A recent survey of customer views found that 65 percent of people plan to be more mindful of their purchases and their environmental impact.

You can help protect yourself from rising energy prices by reducing how much energy you use.

This might include.

  • installing insulation
  • draught proofing
  • extra window glazing
  • switching to less carbon intensive heating
  • installing LED lighting
  • generating renewable electricity

Download Energy Self Audits. 

Other ways of cutting your carbon impact, which may be easier than you think, include:

  • removing all unnecessary packaging from your products
  • limiting business travel
  • sourcing goods and services locally 

For more information, including ideas for small changes your business can make straight away, visit our practical energy and Net Zero small business resource page [https://www.coventry.gov.uk/trading-standards/minimum-energy-efficiency-standards-mees-regulations-2015-non-domestic/6].

Also, the greener your business, the more competitive you will be when tendering for contracts. Environment and social governance (ESG) questions are included in most tenders, and contractors will want to see evidence of how you intend to minimise your impact on the environment, as part of a successful tender submission. As well as opening your business up to new opportunities, having strong green credentials as part of your branding will help attract the best talent and can improve staff morale and productivity.

Business Compliance Team

Open 9am–5pm Monday to Friday (excluding bank holidays)

Resources for small businesses

Businesses, small and large have an important role to play in helping protect and enhance the environment. There is a wealth of information and support for businesses and other organisations freely available on the internet.

British Business Bank

The British Business Bank website [https://www.british-business-bank.co.uk/] includes various jargon-busting guides on business sustainability.

Their knowledge share pages are broken down into topics such as:

  • Learn what’s possible
  • Prepare for the change
  • Take practical action
  • Where to find support. 

The National Federation of Self-Employed and Small Businesses (FSB)

FSB provides some useful free online resources designed for small business owners embarking on the wider sustainability journey or path towards becoming a net zero business. Subscribing members to FSB get access to more resources but subscribing is not essential to access their free resources. Their free resources can be found on the sustainability knowledge sections of the FSB website [https://www.fsb.org.uk/knowledge/fsb-infohub/small-business-sustainability-hub.html]. Some current suggested useful resources are listed on this page but many others are available:

FSB regularly add new guides and resources to its website. You can keep up to date by subscribing to their newsletter. [https://www.fsb.org.uk/join-us/register.html]

Have a look at the FSB Small Business Sustainability Hub [https://www.fsb.org.uk/campaign/small-business-sustainability-hub.html] which is regularly updated with the latest resources, tools and information to help your small business prepare for changes, go green and be more sustainable.

Calculating your business' carbon emission (carbon footprint)

Zero Carbon Business

Sustainable Business Toolkit

SME Climate Change Hub

  • SME Climate Hub [https://businessclimatehub.org/uk/] is a free resource but requires an initial commitment, which is a pledge to act and given the quality of the resource making the pledge should not deter businesses.  The commitment is simply a pledge to act by completing the commitment to halve emissions by 2030, achieve net zero by 2050, and report on your progress yearly. By committing to reduce your emissions through the SME Climate Hub, you will be counted in the United Nation’s Race to Zero campaign. This allows you to partner with thousands of businesses and governments globally to reach net zero emissions by 2050 as well as gain access to a pool of free resources.
  • One of these resources is Climate Fit [https://smeclimatehub.org/climate-fit/], developed by experts in the areas of business and sustainability from The University of Cambridge Institute for Sustainability Leadership [http://www.cisl.cam.ac.uk/] and BSR. Climate Fit is a free online training course to help SMEs reduce their carbon emissions and join the collective race to net zero. Climate Fit has been specifically designed for SMEs.

How it works:

  • Seven modules break the tasks down into achievable steps.
  • 20-30 minutes per module, this self-paced course is designed so you can set the pace.
  • Highly interactive, featuring videos, activities, and quizzes to assist your learning journey.
  • Learn from your peers, with case studies on other businesses that are leading the way on climate action
  • Set concrete actions, which you can take back to your business to effectively implement change.
  • Official help on businesses energy complaints, microbusiness gas or electricity and advice on energy efficiency schemes from Great Britain’s energy regulator, Ofgem [https://www.ofgem.gov.uk/information-consumers/energy-advice-businesses].
  • British Gas Business [https://www.britishgas.co.uk/business/blog/category/videos/]is committed to helping support businesses comply with UK plans to reach Net Zero by 2050.

Other free learning, knowledge and resources

Food waste prevention

Guides to help you and your business increase available product life for consumers.

Business Compliance Team

Open 9am–5pm Monday to Friday (excluding bank holidays)

Small Business Climate change information

What is the role of businesses in tackling climate change?

In the UK businesses are responsible for 17 percent of Co2 emissions, just ahead of residential emissions which account for 15 percent.

graph showing the percentage share of the UK's greenhouse gas emissions per sector. Transport is 27%, Energy Supply is 21%, Business is 17%, Residential is 15%, Agriculture is 10%, Other is 5% and Waste Management is 4%.

It's not just big businesses either, SMEs account for 61% of total employment. Therefore, SMEs will play a big role in reducing the carbon footprint of the business sector.

The Benefits of taking action

We all recognise the environmental benefits of taking action against climate change however it can also benefit your business too.

  • Save money- investigating ways you could reduce your consumption of energy and resources use will inevitably identify potential cost saving opportunities too
  • Answer customer questions- customers are becoming increasingly climate change conscious and are asking more questions of those they do business with, calculating your carbon footprint will mean you are in a much better position to answer them
  •  Attract new customers- as sustainability becomes a more important factor in people's spending decisions you may attract new customers through your carbon reduction efforts

 

 

Small businesses have a role in tackling climate change  

Here are some of the things those local businesses can do:

Choose sustainable supplier and supply chain

As businesses implement carbon-reduction strategies internally, it is critical to consider external factors as well. You should be able to reduce your business's carbon footprint by re-evaluating suppliers based on their green track record, as well as their process and customer service.

Making smarter purchasing decisions and working with sustainable suppliers means that sustainability is prioritised throughout the supply chain.

Getting a smart meter

Smart meters are an excellent way to save energy, protect the environment, and keep your organisation's costs under control. Ask our energy provider about getting a smart meter [https://www.smartenergygb.org/about-smart-meters/small-businesses] for your local business.

Keep a track of your emissions

Local businesses can keep track of their carbon footprint at regular intervals, and you can calculate your company's carbon footprint on our website here. You can also set a climate-related target or emission reduction goal based on your company's contribution to emissions and ability to invest.

The type of target you choose for your company can be shaped by your products and manufacturing methods, as well as the sector that you work in.

Monitoring and reducing energy consumption

Turning off the lights in the office in the evening, lowering the heating or air conditioning, unplugging devices when not in use, choosing energy efficient equipment are all sustainable actions that businesses can do.

You can begin by upgrading your energy systems to LED lighting, optimising heating, and cooling systems, and installing energy-efficient products.

Your building’s energy performance certificate (EPC) can help you understand how efficient it already is and how it might be improved.

Under the latest Government regulations [https://www.gov.uk/government/publications/non-domestic-private-rented-property-minimum-energy-efficiency-standard-landlord-guidance], landlords of non-domestic properties must ensure they have a minimum energy performance certificate rating of E. You can check the EPC for your building on the Government’s website [https://www.gov.uk/find-energy-certificate].

Raise awareness among employees, clients and other stakeholders

Through company practices and policies around sustainability, your company can make employees aware of the importance to reducing their climate footprint.

Putting together a ‘green’ team is a great place to start with a group of enthusiastic employees who can help in identifying opportunities to improve environmental initiatives and in spreading the message throughout the organisation.

Also you can make your customers aware of your carbon-reduction policies and ways they too can reduce their own emissions

Reduce, reuse, and recycle waste

Reduce, reuse, and recycle should be applied to all aspects of your business, from packaging to office supplies to operations and supply chains. Always prioritise reducing and reusing, as these practices reduce waste.

Investing in recycled materials can have a significant impact: for example, using recycled glass requires 30% less energy than producing it with new materials, and producing new aluminium products from recycled aluminium saves more than 90% and possibly as much as 95% of the energy required to produce new metal.

Both landfill and waste incineration produce greenhouse gases, therefore the less you put in the bin, the better for the planet.

Additional climate change resources for small business

 

Climate adaptation toolkit and risk generator (localpartnerships.gov.uk) [https://localpartnerships.gov.uk/resources/climate-adaptation-toolkit/]

 The Carbon Trust have a great guide  [https://prod-drupal-files.storage.googleapis.com/documents/resource/public/The%20journey%20to%20Net%20Zero%20for%20SMEs%20guide.pdf] for SMEs on how they can understand their carbon footprints and make a plan to reduce their emissions.

Compare Green Energy Suppliers using the Big Clean Switch  [https://bigcleanswitch.org/]

 

 

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