Phil Wright is chief engineer for Allianz Cornhill Engineering. Having spent over 24 years in the engineering industry across the globe, he writes about the upcoming legislation on the Management of Energy in Buildings Bill
due out in January 2006.
In a somewhat cynical world, there is a tendency to view almost any new piece of legislation with a jaundiced eye. There is a Bill making its way through Parliament at present that must surely be seen as the exception. It has the inelegant but succinct title of the “Management of Energy in Buildings Bill”.
Brokers and Insurers might find it useful to keep abreast of this Bill. In the near future it is likely to make a significant impact on the large and flourishing property world. It could also open up the prospect of insurance products tailored to satisfy new areas of concern.
There can be few who will deny any longer that the pollution of our atmosphere by carbon emissions is having an adverse effect on our climate. The EU is committed to introducing measures next year and as a consequence, our government intends to have the Management of Energy in Buildings Act on the statute books by January 2006.
It will apply to both new and existing dwellings and to new and existing commercial buildings. There are approximately 25 million dwellings in the UK and something in the order of 4.4 million commercial properties. This is an awful lot of buildings.
Focusing on commercial properties, what are the pros and cons of the new Act? First the pros; helping to protect the planet through lower carbon emissions. Next comes the reduction in energy bills. This is a significant issue that will become more attractive as energy prices soar. Thirdly, is the letability and saleability of properties that can demonstrate excellent energy performance. Another probable and beneficial effect of the Act will be the spur it will give to the development of innovative energy solutions across the whole spectrum of building design.
By comparison, the cons seem quite minor. There will inevitably be a cost associated with providing more effective insulation, more efficient heating and cooling systems and installing clever energy management controls. There will also be a cost associated with engaging specialists and consultants to advise on implementation.
A small requirement – albeit an important one, will be to display in a prominent place, an energy performance certificate.
This notice will have a similar appearance to the performance information that appears on refrigerators, washing machines, and so on. Anyone will be able to see at a glance, the performance rating of the building and that could turn out to be a very good selling point for some buildings.
There is little doubt that the Energy Performance of Buildings is going to be high on the Agenda of property owners and building managers.
The fantastic thing about it is that we will all benefit in the long run.
