The European Directive on the Energy Performance of Buildings (EPBD) will be fully implemented by the end of 2008. Under Article 7 of the Directive, any building which is sold, rented out or constructed must have an Energy Performance Certificate (EPC) showing the energy rating and be accompanied by recommendations on how to improve efficiency, although these do not have to be implemented. Once issued an EPC is valid for ten years.

Relevant parts of the Directive are brought into law by the Energy Performance of Buildings Regulations (2007/991).

From 1 October 2008, an EPC will be required whenever a building in the social or private rented sectors is let to a new tenant.

A building can be: the whole of a building; or part of a building where the part is designed or altered to be used separately. For residential purposes, 'designed or altered to be used separately' describes a unit that is self-contained, meaning
that it does not share essential facilities such as a bathroom/shower room, wc or kitchen with any other unit, and that it has its own entrance, either from outside or through common parts, that is not through another dwelling.

Landlords must provide an EPC free of charge to prospective tenants at the earliest opportunity and must provide a copy of the EPC to the person who takes up the tenancy.

EPCs are valid for 10 years and can be reused as many times as required within that period. It is not necessary to commission a new EPC each time there is a change of tenant.

An EPC is not required for any property that was occupied prior to 1 October 2008 and which continues to be occupied after that date by the same tenant. Where a property is being marketed before October 2008 an EPC is only required if the property continues to be offered for let on or after1 October 2008.

The landlord is not required to produce an EPC when an existing lease is renewed, only when the tenant changes.

The EPC shows two things - the Energy Efficiency Rating (relating to running costs) and the Environmental Impact Rating (relating to the carbon dioxide emissions) of a dwelling. Each rating is shown on an A-G rating scale similar to
those used for fridges and other electrical appliances.

The rating is accompanied by a recommendation report that shows how to improve the dwelling's energy efficiency. These two elements together form the EPC and the complete document must be provided to the new tenant.

There is no statutory requirement to carry out any of the recommended energy efficiency measures stated in the recommendation report.

EPCs must be produced by an accredited assessor, but landlords are free to seek accreditation for themselves and their employees and so become competent to certify their own properties.

Trading Standards are responsible for enforcing the regulations. If the landlord has failed to provide an EPC to a tenant, or fails to show an EPC to an enforcement officer when asked, Trading Standards can issue a notice with a penalty charge of £200 per dwelling. In addition to paying the penalty notice, the landlord will still have to provide an EPC to the person who has become the tenant.

For more information go to www.communities.gov.uk/documents/planningandbuilding