The aim of the EPC requirement is to encourage owners to ensure that their buildings are operating at improved energy performance levels by taking measures to reduce their energy consumption.
On 8 December 2020, the requirement for certain non-residential buildings to display an Energy Performance Certificate (EPCs) by 7 December 2022 was gazetted. The relevant property owners were therefore given two years to comply. The deadline is now looming large.
The requirement applies to government buildings of more than 1 000 square metres and privately-owned buildings of more than 2 000 square metres.
As recently reported by the media, only a fraction of the affected non-residential properties has obtained the required EPCs to date. As per the legislation, non-compliant owners of the buildings can face a fine of up to R5 million or imprisonment for a period of up to five years, or both.
The EPC, which must be prominently displayed in the foyer of a building, contains a rating based on the building’s energy consumption per square metre. The efficiency rating can be anything between A and G, with A being the most efficient and G being the least.
The aim of the EPC requirement is to encourage owners to ensure that their buildings are operating at improved energy performance levels by taking measures to reduce their energy consumption.
SA Property Owners Association’s (SAPOA) CEO Neil Gopal and the South African National Energy Development Institute (SANEDI), which administers the national building energy performance register, have both indicated that the Department of Mineral Resources and Energy (DMRE) is considering extending the 7 December 2022 deadline.
Gopal says that SAPOA raised the following concerns with the DMRE and Sanedi:
- The limited number of approved SANAS (SA National Accreditation System)- accredited inspection bodies versus the number of buildings that are required to be accredited;
- The online EPC portal is still not operational and the standardised template is yet to be launched or published;
- The difference between the South African property industry standard (SAPOA’s method of measurement) and the SANS 1544 definition of net floor area has yet to be resolved and the SANS 1544 steering committee is still to be established;
- The impact of occupancy scaling and operational control issues on EPC ratings has not been resolved.
- The baseline selection and the impact of Covid-19 on energy consumption require further clarity.
Gopal made it clear that SAPAO and its members are not opposed to the legislation, but there are frustrations with the difficulties experienced when attempting to comply.
“This is extremely problematic, given the fact that the delays experienced are not due to the conduct of SAPOA and its members but rather due to regulatory issues. SAPOA simply cannot be faced by a situation where its members face criminal conviction, resulting in jail time and/or substantial fines, in circumstances where the appropriate regulatory authorities have dragged their heels and have not timeously put the appropriate facilities in place to ensure that energy performance certificates (EPCs) can be issued timeously and cost-effectively,” he said.
Even though it now seems that an extension of the deadline is possible, affected building owners are urged to do what they can to comply with the provisions before the deadline of 7 December 2022. It is advised that building owners consult with a compliance law expert to ensure that their certification is in order.
Article by Johan du Toit | Senior Associate