EPCs: costly and complex for pubs

Licensees are still confused over Energy Performance Certificates (EPCs) and are unwilling to pay for them in the difficult trading environment.

That's the message from leading energy consultants about controversial EPCs, which rate commercial properties on energy efficiency.

The new certificates became compulsory from 4 January 2009. Sellers risk penalties from £500 to £5,000 for failure to provide one to a prospective buyer.

Steven Daniels, sales director with BES Consulting, which provides Marston's energy compliance services, said: "There has not been a surge from customers buying energy performance certificates, because I still don't think they understand the consequences or legislation. But larger corporations do understand and are following procedure."

He added: "Smaller solicitors aren't getting the message across to their clients."

Darren Bond, head of valuation services, at Christie + Co, said: "Most people know they should have one, but it is difficult for licensees to understand the tangible benefits when the industry faces other challenges."

But he pointed out that in the longer term it should save licensees money.

Andrew Whelan, managing director of EPCforProperty, said: "There was a rush to get them done before 4 January, but since then demand has been steady.

"Some people also aren't aware that there is a difference between domestic and commercial EPCs."

All three agents agreed that sellers are reluctant to pay for an EPC up front, but once their property is under offer they are happy to pay for it. An average pub can expect to pay around £500 for an EPC.