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Government consults on reforming EPCs with new metrics

The government is consulting on reforming Energy Performance Certificates, proposing a primary fabric performance standard with a secondary standard based on smart readiness or heating system efficiency.

A newspaper on a kitchen table beside a model of rules and regulation

The government is consulting on reforming Energy Performance Certificates (EPCs), proposing a set of new metrics to replace the current cost-based headline rating1. The consultation sits alongside announced plans to require all privately rented homes in England to reach an EPC rating of C by 2030, a deadline covering 4.6 million properties1.

Under the proposals, the minimum energy efficiency standard would be set against a primary metric of fabric performance, described as energy performance based on the building's fabric efficiency1. A secondary standard would then apply, based on either smart readiness, meaning the ability to integrate with a flexible energy system such as smart meters or batteries, or heating system, meaning the efficiency and emissions of a building's hot water and heating systems1. The government is also proposing metrics for energy cost and, separately, fabric performance, heating system and smart readiness as a group1.

Energy Systems Catapult, an independent body, said the existing headline rating is a cost metric with carbon impact counted as an afterthought, and that EPCs do not accurately reflect energy use in a home, with inconsistencies among assessors' evaluations leading to varying results for the same property1. It has proposed adding an Energy Use Metric, indicating predicted total energy use for heating and lighting, and a Climate Impact Metric to encourage low-carbon solutions, alongside the Energy Cost and Smart Readiness metrics proposed by government1.

"Recognising their shortcomings, the government is consulting on reforming EPCs"
Energy Systems Catapult1

The organisation also identified barriers to enforcement and delivery, including under-resourced local authorities that enforce minimum energy efficiency standards, a retrofit workforce skills gap, and poor-quality insulation installed under the government's Energy Company Obligation 4 scheme1. It said many tenants and landlords do not know what their EPC is or how it connects to thermal comfort and energy bill costs1.

Proposed metricWhat it measures
Fabric performance (primary)Energy performance based on the building's fabric efficiency1
Smart readiness (secondary option)Ability to integrate with a flexible energy system, such as smart meters or batteries1
Heating system (secondary option)Efficiency and emissions of the building's hot water and heating systems1
Energy costProposed by government as a metric1

Why it matters for households

EPCs underpin the minimum standards that apply to rented homes and shape which upgrades are treated as worthwhile. If the headline rating moves from a cost measure to one based on what an EPC measures, the improvements that count towards a property's rating could change, which affects both the works a landlord commissions and how a home's performance is described to a buyer or tenant. The proposed smart readiness metric would bring a home's ability to work with a flexible energy system, such as a smart meter or battery, into the assessment for the first time1. The consultation forms part of the wider process by which energy consultations become rules, and any change to EPC regulations and reform would apply across the housing stock, not only the rented sector.

What happens next

Energy Systems Catapult said it will publish a report of its findings, including recommendations for overcoming the barriers discussed1. No date for that report has been reported. The government's consultation on improving the energy performance of privately rented homes is open, and the outcome of the EPC reform consultation has not been reported1.

Sources1 cited
  1. EPC reform - Energy Systems Catapult, es.catapult.org.uk