/ Minimum Energy Efficiency Standards (MEES)

MEES-Overview

MEES was introduced in March 2015 under the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015, to specifically tackle energy inefficiency in the UK’s poorest performing building stock – and the wider aim of contributing towards the UK’s longer term national carbon reduction targets. The structure of MEES was developed to overcome the traditional barriers to the implementation of energy efficiency works in let properties, through a robust legislative approach.

Penalties for Non-Compliance

Failure to comply with the MEES regulations will result in a financial penalty and publication of non-compliance. Financial penalties will be based on the rateable value of the property in question, with a maximum fine of £150,000 per asset.

Implications

Ability to market impacted properties or demises will be impossible if they are not upgraded.
Risks to cashflow from revenue generating portfolios.
Likely reduction in the capital value of impacted properties.
Significant implications for rent reviews and dilapidation assessments with existing tenants
Ability to market impacted properties or demises will be impossible if they are not upgraded.

Key Dates

Compliance Date Impacts Extensions
1st April 2018 New tenancies granted to new
tenants as well as renewals or
extensions of existing tenancies
Landlords may be allowed up to
6 months extension to comply in
certain cases if a Landlord is forced
to offer a new lease involuntarily OR
a new Landlord takes ownership of a
non-compliant property
1st April 2023 All tenancies within the non-domestic
PRS including existing leases
Landlords may be allowed up to
6 months extension to comply in
certain cases if a Landlord buys a
non-compliant property

EPC Rating % of stock
A+/A 3%
B 8%
C 28%
D 35%
E 18%
F / G 8%

 

The average lease length is now 7.2 years with two-fifths of leases having a break clause, allowing the lease to be terminated early*. Given that after 1st April 2018, the MEES regulations will be activated when a new tenancy is signed, the turnover of tenants will also impact the number of buildings which must be improved.

Our consultants will review your EPC portfolio and the status of your tenancies. We will then assess your level of risk and provide a quotation of a MEES assessment if required. We will guide you through the most appropriate route to compliance and ensure any sites which fall within PRS exemptions are reported to BEIS register.

55%
of commercial properties are rented
20%
of commercial buildings are anticipated to fail the MEES regulations
11%
of commercial buildings have dropped to an 'E' rating over the past 12 months

Download our MEES Guide

Our guide contains an overview of MEES, penalties for non-compliance, key dates and how ETS can help you.

How ETS Can Help

The difference between achieving one EPC rating and the next can be influenced by a number of factors, and can often be marginal. We boast a team of Chartered Engineers, Chartered Energy Engineers, Chartered Energy Managers, ISO 50001 Lead Auditors and ESOS Lead Assessors who can guide you through the requirements of MEES and provide you with the necessary insight and assistance to address any risks for your portfolio.

As market leaders in energy management, technical engineering consultancy and compliance, with a network of offices across the UK and Ireland, we are ideally positioned to help you drive operational cost reduction and risk mitigation programmes across your estate.

To find out more on how we can assist you either specifically with MEES, or with any other area of portfolio energy management, cost reduction and statutory compliance, please contact ETS on: 0117 379 0850 / 07432 712984 or email us at david.eynon@energy-ts.com.

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