New MEES Guide to Action Plan



10 April 2017

With less than 12 months remaining until the introduction of the Minimum Energy Standards regulations in April 2018 a commercial property software company has produced a guide for building owners on the action they need to be taking in advance of the deadline.

Arbnco has found that the estimated 19% of commercial properties with F and G ratings could see their capital value reduced by as much as 10%, with the impact on the £871bn total UK property value estimated to be as much as £16.54bn.

The guide sets out the content of the regulations and the requirements building owners will need to meet, the details of enforcement and penalties for not complying, and recommendations for taking action to avoid problems, which should often start with getting new EPCs.

The paper contains a five-step plan to achieving MEES compliance:

1 Portfolio Review: identify properties with no EPC, review lease renewal dates and decide whether a new EPC is required.

2 Confirm that ‘at risk’ properties with F and G EPCs really are F and G by undertaking new EPCs to provide accurate and dependable ratings before undertaking any retrofit works.

3 Identify means of retrofitting ‘at risk’ properties to achieve an E rating or better and assess the cost of compliance. Review impacts of future refurbishments and planned preventative maintenance (PPM) schedules.

4 Incorporate energy efficiency improvements into retrofit and PPM schedules.

5 Update leases, tenant fit-out and dilapidations processes to allow for appropriate provisions for the landlord/owner to continue to comply with the requirements of MEES.

Simon West, founder of Arbnco said: “All landlords will potentially be affected by the MEES regulations, irrespective of the size and nature of portfolios, and early action is advised to mitigate the impact.  Landlords and CRE investors need to act now to alleviate the risks posed by MEES legislation ahead of the April 2018 start date.”

Pauline White, underwriting analyst at Zurich said “Action now to identify ‘at risk’ properties and the costs to improve them will be time and money well spent.  Without this, the owner could end up with a property that cannot be let, potentially long term unoccupied, that becomes a drain on resources instead of generating an income.”

Arbnco, founded in 2009 and formerly known as CO2 Estates, is scheduled to launch its Arbn Consult software platform to the consultant and EPC Assessor market during this month, which it said enables quicker and better decisions to be made on the energy performance of commercial property.

The full Arbnco MEES guidance report can be downloaded from: