Pubs face £1,500 bill for energy certificate

New energy certificates to increase red tape and costs in only nine months' time

An energy performance certificate (EPC) could cost pubs up to £1,500 and there are serious concerns about the lack of inspectors.

The MA broke the news in June last year that from 1 October 2008, all pubs that are sold, rented or built will have to have their own EPC - a fact the industry was largely in the dark about.

Under the commercial version of the controversial home improvement packs (HIPs) pubs will be rated by an independent assessor on energy efficiency from A-G, or could even fail.

The certificates will last for 10 years and include a list of recommendations to upgrade efficiency. Inspectors will look closely at boilers and air conditioning, in particular.

The rating could have a knock-on effect on property prices, premiums on assignment, dilapidation schedules and rent reviews - and add yet more red tape.

A certificate for a pub is likely to cost between £1,000 and £1,500 - although the Government has warned that could increase.

Cookseys DMP managing director David Morgan is also concerned that there will be a lack of trained individuals able to issue an EPC. "There does not appear to be any urgency by Government to establish a central register of competent persons," he said.

"Also of concern is the fact that the Royal Institution of Chartered Surveyors (RICS) has not shown any inclination to establish any form of central register. Random searches of the internet is the only solution at present."

RICS estimates that there will need to be 2,000 assessors in place when the scheme goes live on 6 April for buildings over 10,000sq m. "It is essential that accreditation schemes are put in place as soon as possible to ensure the required number of inspectors is available from April next year," a spokesman said.

Morgan warned that tough choices lay ahead. "It is essential the pub industry heeds this wake-up call. It will not be able to ignore either the legislation or the political force of hard choices behind it."

Tony Payne, chief executive of the Federation of Licensed Victuallers Associations, said: "Licensees used to sell beer - now they just try and keep up with legislation. No other small business has been hit like the licensed trade. We've had extra costs left right and centre. It's a real worry."

Morgan has produced a free Q&A sheet on HIPs for readers available to download from www.morningadvertiser.co.uk/docs/Energy_Efficiency_Certificates.doc.