The certificates are coming
Written by Alan Aldridge, Energy Systems Trade Association (ESTA), July 2006   
Energy certification of buildings is on its way. Even if the exact timetable is still unclear, facilities and energy managers can prepare for what will be a key tool in demonstrating good performance. Energy labelling of white goods appliances (fridges, freezers, washing machines and driers) has been so successful in transforming the market and improving energy efficiency, it was only a matter of time before the concept was extended to buildings. In fact, the Energy Performance of Buildings Directive (EPBD) was approved for the whole of Europe in 2003 with the requirement that governments of EU member states implement it by January this year.

Inexplicably, for a government that claims the lead internationally on climate action, the UK has still to announce how - and when - it will bring in energy labelling for our building stock. However, what is certain is that this will happen and in the not too distant future - despite backsliding by some ministers and civil servants.

The Directive

The EPBD requires that when a building is constructed, bought, sold or let, it must have an energy certificate. This will apply to virtually all buildings, from small domestic flats up to the largest corporate flagship headquarters. The aim is once again 'market transformation': if potential purchasers/tenants know that this building is going to be more expensive to heat than that one, they are more likely to opt for the more efficient. A more comfortable environment can also be expected to be a more productive workplace. And for organisations that are keen to reduce their carbon footprint - and that is not just commercial ventures committed to corporate social responsibility (CSR) programmes, but also public sector bodies keen to hit climate change targets.

These certificates will need to be renewed at least every ten years. So changes in energy performance over time will be recorded. The certificates themselves are expected to look like those on white goods and new cars, with a series of coloured bands indicating how energy-efficient the structure is.

For public sector buildings, there is a requirement that the energy certificates should be prominently displayed. There is still some debate as to what constitutes a public building: does the term only apply to 'publicly-owned' buildings or does it mean any building open to the public, such as shopping malls? The wording of (the English translation of) the Directive is ambiguous and the Government appears to have settled for a fairly narrow interpretation. There are suggestions of a court challenge to such an interpretation, but until the Government formally states its policy in terms of legislation, the matter will remain unclear.

It should also be remembered that the building regulations are being updated regularly and are increasingly stringent. In addition, they now cover most refurbishment work. So even though the UK building stock is only being replaced at a rate of about 1 per cent per year, the rate at which buildings are being improved is much higher. The difference in energy performance between the pre- and post-refurbishment building will be significant. The energy certificate will make the improvement 'visible' and make the building a more attractive proposition for renting or sale. The increased 'sale-ability' of the refurbished building can, at least in theory, be offset against the investment required.

It is also worth noting that the Directive requires when large buildings (with a useful area of more than 1000m2) undergo major renovation, the energy systems must also be upgraded "to incorporate all cost-effective energy efficiency measures". If the work has to be done, it is good to know that it can be given a commercial value with the advent of energy certificates.

Asset ratings and operational ratings

There is still an unresolved question about just what will be assessed for the certificate. Our understanding of current proposals is that there will be two distinct ratings used - asset ratings and operational ratings. The first is an indication of the intrinsic efficiency of the building: it is based on the insulation levels of the fabric, its airtightness, the efficiency of the boiler and air conditioning. The asset rating is a measure of the energy performance 'as built'.

The operational rating on the other hand is a measure of how efficiently the building is operated. As anyone with experience of energy management will know, the asset and operational ratings can be quite different.

There is some concern about the cost of certification. However, using actual metered data will make the generation of the operational rating relatively simple compared to the asset rating, which requires more detailed knowledge of the building's construction and services. For new buildings the asset rating will not cause a problem: after all, the detailed plans of the buildings and its services, together with equipment ratings, will all be readily available. For older buildings, a very real problem emerges: structural changes may have been made, the boiler and head distribution systems may have been changed several times - and the plans may not be available anyway. The performance ratings and measurements (even of insulation) may be in imperial units rather than metric... and so on. It has been estimated that it might take the facilities manager three days of their own (or someone else's) time to calculate the asset rating for, say, a Victorian town hall.

Assessment

Another issue looming over the introduction of energy certificates is the lack of independent assessors, required under the Directive, to undertake the certifications. As yet, the Government has not finalised the procedures for accrediting these individuals. Until this has been done, and training courses successfully completed, there will be no one qualified to make the assessments.

A concern expressed by building owners with multiple properties is the speed at which they will be expected to complete the certification process, once the arrangements are finally in place. If no building can be let or sold without a certificate, then owners will face what has been referred to as a "cliff face". They will have to complete the certification process as soon as possible. In theory, the majority of buildings in the country would have to be assessed within the first year to 18 months. That would pose enormous logistic problems for both assessors and owners. And it is a problem that would recur every ten years. There has been no official response to this concern as yet.

Preparing for certification

Certification is coming although the exact timetable is still unknown. Facilities managers can prepare for it though. By accumulating as much data about their building, its services and operational efficiency as soon as possible, the certification process can be completed as quickly and as cheaply as possible. Energy certification is not an "if" or a "maybe" - it will happen. Gathering together all the necessary information now will make the process as smooth as it can be.

For facilities and energy managers, the energy certificate will be a key tool in demonstrating good performance. It will also be a simple summary of performance to use in discussions with senior management - and one that they will easily understand.

ESTA has calculated that improving a typical building from a D to a B rating will save at least £10 per square metre. This immediately gives an indication of the likely economic worth of improving energy efficiency. In addition, senior management will be interested in their organisation's public image. Having readily available ratings will quickly focus the mind on protecting - and enhancing - environmental credentials and should lead to the kind of market transformation already seen in fridges and other white goods.

Further information
Please visit www.esta.org.uk