Two conversations in the last 24 hours have got the hairs on the back of my neck twitching away.
As you may, or may not, be aware I'm selling a business that I've run for the last ten years. One of the legal requirements to be able to do so is that I produce an Energy Performance Certificate (EPC) for the premises. Just like when I buy a fridge, freezer or washing machine that has the certificate label on the front I assumed that people would look at it, say "oh an E rating", and that would be that. Not so according to the assessor who is coming to perform the check next week. His understanding is that the EPC will become compulsory for business from Oct 2011 and companies will be "encouraged" to improve their rating to reduce CO2 emissions.
I was talking to someone I know who has recently had their business premises assessed for it's rateable value by the Valuation Audit Office (VOA). He says that he had a specific 10% reduction in his rateable value because the unit he rents is single glazed and uninsulated. Looking at one of the VOA valuation scales confirms that a premises will have it's rateable value increased or decreased if insulation is present or absent.
If businesses are "encouraged" to improve their EPC rating then their premises will increase in rateable value and therefore the level of rates due. "Encouraging" companies into a position where they increase their tax burden in the name of environmentalism? That's the kind of behaviour you would expect from the government. Oh.
Thursday, September 23, 2010
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6 comments:
Let us for the sake of argument then take the line that "something must be done" about climate change.
"If businesses are "encouraged" to improve their EPC rating then their premises will increase in rateable value and therefore the level of rates due. "
How do you actually do that without doing what they have done, penalise those who don't / can't upgrade the building?
Check out the EPC "Assessor".
He/She's probably been on a 2-week course to learn 'all' about energy use in a building.
The amount they know about heating & ventilating (the greatest use of energy in a commercial/industrial premises) is probably limited to how they control their boiler at home.
Just like those wastrels at the Carbon Trust (fortunately on Pickles's hitlist of possibles for the chop), who think appliance efficiency = system efficiency. [It is system efficiency which dictates energy use.]
Demand the assessor provides you with proof of their competence.
That is pure genius from the men at the ministries.
As to 'energy usage', are these people clinically insane? Can't they just ask to see the last twelve months worth of gas and electric bills? Isn't that a pretty good guide?
FFS.
Anonymous - I may not have been totally clear in the post so I'll clarify. If you make your building more energy efficient it attracts a greater levy in business rates which is, in effect, penalising those businesses that have made the desired improvements.
That can't be right can it? If we take the attitude that "something must be done" about climate change then surely the position that we should penalise those that don't improve their buildings would make more sense?
I'm knackered then - mine is triple glazed.
Whats the problem? Get your EPC done, doesn't matter what it says, cos no-one is going to say 'Ooh this is a great business, but I won't buy it because the windows in the office are single glazed', don't uprate the insulation, don't pay higher rates. Job done. F**k the planet!!
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