Guidance from the Department for Energy and Climate Change (DECC) has been scarce, although a new consultation paper is expected. 

“Unfortunately there is no definitive guidance at present as to what the exact standard will be to ensure shop owners or tenants are compliant,” says Matthew Williamson, real estate partner at Weightmans.

Due to the sensitivity of the issue, there is the possibility that the consultation paper will be delayed until after the general election. Given the last date for the implementation date for the operative part of the act (April 1, 2018), time is running out for compliance with the legislation in its current guise.

“Tenants must be wary of the provision in their leases that states that they must comply with all legislation as it is possible, depending on the state and efficiency of what is let to them. It goes without saying landlords will be looking to push the cost of any improvement works onto tenants,” Williamson says.

Until these regulations are issued it is unclear what level of efficiency commercial property will need to achieve, but the minimum is likely to be an Energy Performance Certificate (EPC) ‘E’ rating.

Williamson adds: “Although EPCs are not usually required until a building is sold or rented out, occupiers should think about obtaining one, because unless the building meets the minimum standard they may be unable to let their property.”

Tenants and landlords will be well served by keeping up-to-date with the act and the guidance from the DECC so modifications can be planned if necessary.