MEES and HFCs: Burden or opportunity?

The incoming Minimum Energy Efficiency Standards (MEES) will make it illegal to grant a new lease for a property with an Energy Performance Certificate (EPC) rating of F or G from 1st April, 2018 (and will affect existing leases too by 2023). The Fluorinated Gas (F-Gas) Regulations are increasingly restricting the supply of certain types of refrigerants widely used in air-conditioning systems, resulting in significant price hikes. Both the MEES and the hydrofluorocarbons (HFC) phase-down requirements can be addressed in tandem, as upgrading or replacing a property’s air-conditioning system can have a hugely positive impact on its EPC and will eliminate reliance on depleting, increasingly expensive gases. The input of a specialist mechanical and electrical (M&E) consultant in a refurbishment design phase will mean that a number of refurbishment/replacement options can be reviewed to ensure that the property would remain legal to let post-2023 (thus avoiding the need to re-enter to carry out disruptive — and more costly — works mid-lease) while also potentially reducing future service charge/repair works and operational/energy costs. With careful planning, and by being pro-active rather than reactive, the costs involved — although admittedly higher in the short term — will be lower overall over the long term.