Minimum Energy Efficiency Standards (MEES)
Find out everything you need to know about Minimum Energy Efficiency Standards (MEES) and how EIC can help you stay compliant.
If you’re a commercial landlord there’s new legislation that your rented properties need to adhere to.
What is Minimum Energy Efficiency Standards (MEES)?
MEES came into effect in April 2018, making it unlawful to grant new leases to properties with an F or G Energy Performance Certificate (EPC) rating. From April 2023 the rules will be extended to include all existing commercial leases.
The legislation will apply to all new leases, extensions, renewals, and sub-lets (from six months to 99 years). There are some exemptions; these relate to the cost effectiveness and and Return On Investment (ROI) of updates required, third party consent, and devaluation.
MEES is sometimes referred to as Minimum Energy Performance Standards (MEPS).
It is imperative to get on the front foot with MEES compliance so you can actively reduce the risk of fines, vacant premises, and property value depreciation. Failure to comply with the Regulations will result in landlords facing a financial penalty and a publication of non-compliance. Local authorities will enforce the provisions via Trading Standards Officers, with fines up to £150,000.
- For breaches under three months: Up to £5,000 or 10% rateable value – whichever is greater.
- For breaches over three months: Up to £10,000 or 20% rateable value (up to £150,000) – whichever is greater.
Your MEES journey with EIC
Portfolio Analysis: Analysis of existing building portfolio to identify where new EPCs are required (sites with no valid EPC and F or G rated sites).
Risk Assessment: Provision of all required EPCs and production of MEES Risk Report which details all sites ‘at risk’ (F or G rated) and proposed next steps to ensure compliance.
Risk Mitigation: Detailed investigation of improvement measures and fully managed implementation of energy efficiency projects to improve EPC ratings for F or G rated sites. Production of new EPC to ensure MEES compliance upon completion.
Future MEES updates?
As at Nov 2019, the Department for Business, Energy & Industrial Strategy (BEIS) has published a consultation to seek views on proposed targets for the Minimum Energy Efficiency Standard (MEES). There are 2 options under review:
- The Government’s preferred route is that all non-domestic privately rented buildings achieve a Minimum Energy Efficiency Standard of a B rating, by 1 April 2030. This is provided the measure (or package of measures) required to reach an EPC ‘B’ proves cost effective.
- The alternative option is that all non-domestic privately rented buildings reach a ‘C’ rating by 1 April 2030, if cost effective.
Read more at our Consultation to improve MEES blog here.
Who is exempt?
Landlords are exempt from meeting the minimum standard if they can demonstrate one of the following:
- Cost Effectiveness – The identified improvement measures are not cost-effective, either within a seven year payback, or under the Green Deal’s Golden Rule (as recommended by an independent installer of energy efficiency improvements).
- Third Party Consent – Despite reasonable efforts, the landlord cannot obtain necessary consents to install the required energy efficiency improvements, including from tenants, lenders and superior landlords.
- Devaluation – A relevant suitably qualified expert provides written advice that the measures will reduce a property’s value by 5% or more, or that insulation required to improve the property will damage the property.
- Separate legislation for Scotland.
Why choose EIC?
- We have a flexible approach. We can fully manage the process for you or just help with certain elements such as EPC assessments, an initial gap analysis or implementing energy efficiency improvements.
- We offer high quality and accurate EPCs – essential for MEES compliance.
- We can help you implement improvements so your property is re-let quickly, reducing the chance of any loss of income.
- Our experts can help you navigate the guidelines and assess your properties to ensure you make the right decisions on how to comply for your business.
Take your first step towards Minimum Energy Efficiency Standards (MEES) compliance now