Backlash over energy certificate scheme

New legislation requiring pubs to obtain an Energy Performance Certificate (EPC) could be the "straw that breaks the camels back" for licensees fed up with red tape, a property agent has warned.

Under a European Directive, all pubs newly built, sold or rented and more than 500sq m in size will from April 2008 require an EPC - which are designed to indicate to a prospective buyer how energy efficient a property is.

All other pub owners will need a certificate from October 2008. Existing tenancies do not require one.

The cost of an EPC, which is valid for 10 years, is so far unclear. The Department for Communities and Local Government (DCLG) has said their price will be set by the market and will depend on the size and complexity of the building.

Barry Gillham, chairman of Fleurets, fears that many publicans will see the scheme as yet more unnecessary regulation.

"It is yet another lot of red tape that people will have to contend with and it could be the straw that breaks the camels back," he said.

However, commenting on whether EPCs would have an effect on rents, he added:

"Since rents are fixed by comparables they either all move in unison or nothing happens. It will be universal in terms of the effect it has."

Licensees have also hit out at the legislation. David Wine, lessee at the Six Bells, in Felsham, Suffolk, said: "It's a disgrace. It's going to have a big effect on a lot of older pubs that aren't energy efficient and could be the death-knell for many."

However the Royal Institute for Chartered Surveyors (RICS) has claimed that the scheme will have a positive impact.

Nadia Nath-Varma, RICS public policy officer said: "We support EPCs as this will facilitate the contractual process for leasing and selling commercial property, whilst encouraging energy efficiency."