What we do

Landlords use energy to provide services in the shared parts of the building, plus exclusive use services to the tenanted areas; however the extent of such provision varies, particularly for heating and air-conditioning. The annual service charge accounts tell tenants how much of the cost of these landlord services they bear, but seldom include the associated amounts of energy and carbon. 

The Government has introduced, as a result of the Energy Performance of Buildings Directive (EPBD) implementation, an energy performance certificate (EPC).

Its calculations do not capture the effects of buildings and services which do not behave exactly as designed or the complexities of the occupier’s fit-out and its operation and maintenance. They also do not account for controls that do not work properly, or any lack of understanding of building services by occupiers and building managers. In the experience of many of our members, EPCs are expensive to deliver, are of limited accuracy, offer limited insight and report only predicted improvements. Essentially, the EPC does not measure actual energy use or emissions – it provides theoretical information based solely on the design of a building.

We have worked with the Carbon Trust to develop the Landlord Energy Statement and Tenant Energy Review (www.les-ter.org.uk) to permit data to be gathered pursuant to a display energy certificate. This would smooth the transition if the Government was persuaded to adopt this policy.

We also want mechanisms for sharing the cost and benefits of energy performance improvement between landlords and tenants.

Finally, we recommend that the Government prioritises a full consultation about the way that tax incentives might be used to incentivise better energy performance in the UK’s existing non-domestic stock.