These certificates are for all buildings and will be required
whenever a building is constructed, rented or sold.
The EPC is broadly similar to the labels now provided with
domestic appliances such as refrigerators and washing
machines and will have an A to G rating.

Its purpose is to record how energy efficient a property is
as a building. The certificate will provide a rating of the energy
efficiency and carbon emissions of a building from A to G,
where 'A' is very efficient and 'G' is very inefficient.

EPC's are produced using standard methods with standard
assumptions about energy usage, so that the energy efficiency
of one building can easily be compared with another building
of the same type.

This allows prospective buyers, tenants, owners, occupiers
and purchasers to see information on the energy efficiency  
and carbon emissions from their building so they can consider energy efficiency and fuel costs as part of their investment.

An EPC is always accompanied by a recommendation report
listing cost effective and other measures (such as low and zero
carbon generating systems) to improve the energy rating of the
building.

The certificate is also accompanied by information about the
rating that could be achieved if all the recommendations were
implemented.

For homes, two ratings are shown.

The Energy-Efficiency Rating is a measure of a home's overall
efficiency. The higher the rating, the more energy-efficient the
home is, and the lower the fuel bills are likely to be.

The Environmental Impact Rating is a measure of a home's
impact on the environment in terms of carbon dioxide (CO2)
emissions - the higher the rating, the less impact it has on the
environment.

Each rating is based on the performance of the building itself
and its services (such as heating and lighting), rather than the
domestic appliances within it. This is known as an asset rating.
The certificate also lists the potential rating of the building if
all the cost-effective measures were installed.

The ratings will vary according to the age, location, size and
condition of the building. The potential rating on the certificate
will take these factors into account, and the suggested measures
will be tailored so that they are realistic for the particular building.

In addition to the asset ratings, EPC's convey several other key
pieces of information:

• Reference information

This includes the type of property (e.g. house, flat), the unique
reference number (as stored in the central register) and date
of the certificate.

• Estimated energy use

This is based on standardised assumptions about occupancy
and heating patterns. An estimate of the current and potential
energy use, carbon emissions and fuel costs for lighting, heating
and hot water is provided. The actual energy use depends on
the behaviour of the occupants.

• Energy Assessor details

This includes the assessor's name, accreditation number,
company name (or trading name if self employed) and
contact details.

• Complaints

The certificate will provide information about how to
complain or how to check the certificate is authentic.

• Energy advice

The certificate provides basic advice about energy
efficient behaviour.

• Recommendation report

The certificate is accompanied by a report which includes recommendations to improve the energy ratings.

Recommendations include cost effective improvements and
further improvements (that achieve higher standards but are
not necessarily cost effective).

For each improvement the level of cost, typical cost savings
per year and the performance rating after improvement are
listed.

The potential rating shown on the certificate is based on all
the cost effective recommendations being implemented.

From 1 January 2008, all homes newly marketed
will require a HIP containing an EPC.

From 1 October 2008, all homes for rent will
require an EPC .

The EPC and recommendation report must be made
available free of charge by the seller or a landlord
to a prospective buyer or tenant at the earliest
opportunity and no later than:

• When any written information about the building
  is provided in response to a request for information
  received from the prospective buyer.

• When a viewing is conducted.

• If neither of those occur, before entering into a
  contract to sell or let.

An energy performance certificate does not have to be
made available if:

• The seller believes that the prospective buyer or
  tenant is unlikely to have sufficient funds to purchase
  or rent the property or is not genuinely interested in
  buying or renting that type of property.
  

• The seller or landlord is unlikely to be prepared to
  sell or rent out the property to the prospective buyer
  or tenant (although this does not authorise unlawful
  discrimination)

Where a Home Information Pack is required, any written property particulars prepared for prospective home purchasers must either
be accompanied by the whole EPC (but not the recommendation
report) or include the graphs which show the energy rating of the building. Written particulars mean any description of the property
that includes two of the following: photographs of the property,
floor plans or rooms sizes. This includes information on a website.

For the marketed sales of homes, including homes marketed before
they are physically complete (i.e. off plan), Home Information Pack
(HIP) regulations apply. Where a HIP is required an Energy
Performance Certificate must be produced as part of the pack
(for off plan homes this will be an indicative energy assessment).

On this website, references to marketed sales of homes mean
marketed sales of homes which are physically complete when marketed.
For further details please visit the Governments Home information pack website.

Homes sold without marketing for sale e.g. by private treaty
between family members or Local Authority housing will require
an EPC on sale from 1 October 2008.

When buildings are to be rented out, the landlord is responsible
for ensuring a valid certificate is made available to all prospective tenants. Homes will require an EPC on rent from 1 October 2008.

When a Home Information Pack (HIP) is needed for
the sale of an existing home, an Energy Performance
Certificate (EPC) and recommendation report must be
made available as part of the HIP.

When a Home Information Pack (HIP) is needed for the
sale of a home being built (off plan), energy information
in the form of a Predicted energy assessment must be
made available as part of the HIP.

Some homes that are sold will not require a HIP. These include:

• Properties where there is no marketing (e.g. sale to a
  member of your family).
  
• Seasonal and holiday accommodation.
  
• Portfolios of properties.
  
• Unsafe properties and properties to be demolished.
  
• Right to buy and similar sales.