Housing energy efficiency is one of the government’s key areas in the drive to reduce our carbon footprint. It’s such a big part of the problem and it’s one we can do something about right now. Improving energy efficiency in our homes also helps householders and tenants reduce bills, especially in a time when prices are still so volatile and are expected to remain so.

Earlier criticisms of the EPC

Energy Performance Certificates (EPCs) is nothing new. It’s been around since 2007 when introduced into England & Wales and separately in Scotland and Northern Ireland.

While largely accepted as necessary, it has been subject to criticism over its sixteen-year history. Such criticisms range from too short implementation period for improvements, and how often ratings are too subjective.

Now though, Lord Deben, the Chair of the Climate Change Committee has highlighted a number of problems with the system.

What were Lord Deben’s criticisms?

He said that the current EPC system is “not fit for purpose.” Lord Deben feels that homeowners and renters are not provided with clear information on how the EPC works or what it means.

Two things make up an EPC rating: The Energy Efficiency Rating (EER) and the ‘Environmental Impact Rating’ (EIR). EER is the primary focus when buying/selling or renting a home. However, this metric is problematic as it measures energy cost and not efficiency. Therefore, it’s no incentive to improve efficiency.

In his letter he highlighted the issues that the Scottish Government is already investigating the EPC system up there with a view to reforming it.

Potential improvements

Lord Deben believes that the EPC rating ought to be rethought to make information clearer. Further, reform should include a new focus on incentivising both landlords and homeowners alike to understand what they can do to improve energy efficiency. Currently, EPCs simply rate the current state of the property.

•         Names should be simplified to remove confusion over their meaning
•         Switch to real-world units as a clear and concise measure, to include bands making comparison easier
•         There should be consideration for the occupancy level as this can impact the energy efficiency and help the owner/landlord predict consumption

As well as a new set of four factors that look at the size of the property, the intensity of the heating, type of heating and cost, any such new system should become interactive. Specifically, to make adjustments and understand how each change might impact the energy efficiency.

Finally, the EPC could also include details of specific property risks and how to best handle them. This would help property owners (owner occupiers and landlords) make better decisions.