Recommendation 32

HM Government · verbatim extract Acknowledged

We agree with the Committee on the importance of ensuring Energy Performance Certificates (EPCs) align to our policy objectives, and legally binding targets, to achieve net zero by 2050 and tackle fuel poverty, and we will continue to keep the metrics and methodologies used by EPCs under review as we develop policies to deliver on those objectives. Alongside the energy efficiency rating (EER), based on the estimated running costs of the property which can be a significant outlay for owners and occupiers, EPCs also provide homeowners with information on the estimated current and potential annual CO2 emissions of the property following the implementation of the recommendations provided, as well as the estimated primary energy use of the property per year in kwh/m2. Government recently consulted on raising the minimum energy efficiency standard for privately rented homes to an EPC Energy Efficiency Rating of C, and an Environmental Impact Rating of C, which would utilise both a cost and carbon metric to improve energy performance. This consultation is now closed, and the responses are being analysed with a summary to be published in due course. The underlying set of calculations used to generate EPCs is defined by the Standard Assessment Procedure (SAP); is updated periodically in line with the updates to Part L of the Building Regulations. The current version of SAP came into force in 2013; we are currently consulting on final updates to the next version of SAP, SAP 10.2, which will improve and update the methodology to increase its accuracy and are looking to introduce an upgrade to the current version of SAP later this year. In parallel Government has started work to develop a future version of SAP which is expected to come into force alongside the Future Homes Standard in 2025. As part of this we commissioned a scoping project to advise on what SAP 11 will need to model and how it should do this. This will be important for ensuring SAP is best able to meet our policy objectives, including reaching net zero emissions. The project recently delivered its final report and Government is considering its recommendations, which will help to inform the development of the future methodology. This will include, in line with the commitment in our EPC Action Plan, investigating the potential to use smart meter data and Smart Meter Enabled Thermal Efficiency Ratings (SMETERs) to supplement the existing SAP methodology, and better reflect in-use performance. We agree with the Committee on the importance of assessor competence. EPCs may only be completed by suitably qualified assessors and professional standards are maintained by the six accreditation schemes. As indicated in the EPC Action Plan, we are working with the accreditation schemes and its representative body to review the competence of assessors and, as part of that, will consider a range of measures to ensure that the skills of those producing EPCs are maintained and built upon to increase the quality of EPCs.