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Knowledge

Energy Performance Certificates to become mandatory in Jersey

28 September 2023

The Government of Jersey is planning to introduce a mandatory Energy Performance Certificate (an "EPC") regime in Jersey by the end of 2026, as part of Jersey's Carbon Neutral Roadmap.

What is an EPC?

An EPC gives a property an energy efficiency rating. EPCs may also set out the likely cost of energy usage at the property and include recommendations for energy efficient improvement works.

How to obtain an EPC

EPCs are issued by an accredited energy assessor, following a site visit. The assessor will conduct an energy audit which assesses the energy usage and efficiency of the property. An EPC will rate a building (normally on a scale between A – G) depending on its efficiency.

The Government of Jersey maintains a list of accredited domestic energy assessors (who are able to carry out energy audits on residential property). The Government of Jersey is engaged in the training of accredited energy assessors for commercial property.

The EPC regime

During the course of 2024, the Government of Jersey intends to draft and lodge the relevant legislation to implement a mandatory EPC regime for both commercial and residential property.

Whilst the exact nature of the planned legislation is not yet known, it is anticipated that Jersey will adopt a regime which closely follows the UK model (where EPCs have been a legal requirement since 2007). It is expected that:

  • By the end of 2025, legislation will require a valid EPC to be in place at the point of sale or rental of a property; and;
  • By the end of 2026, legislation will prevent the sale or rental of a property which does not have a valid EPC which certifies that the property meets a minimum energy efficiency standard.

These requirements will apply to residential and commercial property.

The Government of Jersey has budgeted for, and is planning to provide, a number of subsidies to assist owners with the cost of putting EPCs in place. The subsidies are principally aimed at residential property owners, although a limited number of commercial property owners will also benefit.

Impact

  • whilst more accredited energy assessors are being trained, it may be that the demand for EPCs outstrips the available supply (which could lead to transactional delays);
  • whilst much will depend on the minimum efficiency rating required by legislation, it may be that owners and landlords find themselves needing to carry out improvement works to their premises before they can sell or lease their property;
  • the value of a property could be affected where it does not meet relevant energy efficiency standards;
  • although it is not anticipated that the legislation will require an EPC at the point of remortgage, it is possible that lenders will require an EPC as part of their approval process;
  • whilst the draft legislation is not currently available:
    • prospective purchasers are now more likely to raise enquiries as to the energy efficiency of a property; and
    • prospective sellers may wish to obtain an EPC for their property and carry out improvement works where relevant.

Next steps

Property owners may wish to assess the energy efficiency of their property so that they are fully informed before the legislation is introduced. Prospective purchasers should assess the possible cost of improvement works when purchasing property and, where appropriate, request an EPC from the seller in advance of completion.

If you would like any further information, please get in touch with your usual Bedell Cristin contact or one of the contacts listed.

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