The Government's confirmation that privately rented non-domestic buildings over 1,000 square metres in England and Wales will be expected to achieve a minimum EPC B rating by 2031 represents one of the most significant developments in commercial building energy policy for many years.

The Building Controls Industry Association (�鶹ԭ��) welcomes the announcement. Raising the minimum standard from EPC E to EPC B sends a clear signal that improving building performance is becoming an increasingly pressing priority. It reflects the crucial role that non-domestic buildings must play in reducing energy consumption, lowering carbon emissions and supporting the UK's wider net zero ambitions.

However, achieving EPC B at scale will require more than replacing equipment or undertaking expensive refurbishment projects. It will require a greater focus on how buildings function day-to-day and a recognition that some of the most significant energy savings can be achieved through smarter building operation.

This is where building controls and Building Energy Management Systems (BEMS) have a critical role to play.

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What has the Government announced?

Under the Government's proposals, privately rented buildings in England and Wales with a floor area of more than 1,000 square metres will be required to achieve a minimum EPC B rating by 2031, where improvements are considered cost-effective.

Buildings below 1,000 square metres will continue to be subject to the existing minimum standard of EPC E, with no confirmed timetable for introducing higher requirements.

The Government has also confirmed that existing flexibility measures will remain in place, including:

·        the seven-year payback test

·        existing exemptions where improvements are not practical or cost effective

·        a continued focus on proportionate investment

These measures recognise that improving energy efficiency must remain commercially viable while supporting wider decarbonisation ambitions.

A welcome step forward – but only part of the journey

The new proposals represent genuine progress, yet they should also be viewed as the beginning of a wider conversation about building performance

Although buildings larger than 1,000 square metres account for only around 7% of non-domestic buildings, they are responsible for more than half of the sector's total floor space and energy consumption. Improving the performance of these buildings therefore offers significant opportunities to reduce energy use, lower carbon emissions and cut operational costs.

The proposals also provide greater certainty for building owners, investors and occupiers as expectations around sustainability and energy performance continue to increase.

Nevertheless, limiting the new requirements to larger buildings means thousands of smaller commercial properties will remain outside the scope of the proposed changes for the foreseeable future.

While this is disappointing, the direction of travel is clear. Expectations around commercial building energy performance will continue to rise, and organisations that begin improving their buildings now will be better placed to meet future regulatory and commercial demands.

EPC ratings are only part of the story

Energy Performance Certificates remain an important policy tool. They provide a useful benchmark and help create a consistent framework for improving energy efficiency across the built environment.

However, EPCs provide an indication of a building's theoretical energy efficiency and do not necessarily reflect how efficiently a building performs in operation.

Across the commercial property sector, it is common to find buildings consuming significantly more energy than they need because heating, cooling, ventilation and lighting systems are not operating efficiently. Buildings are often heated when unoccupied, ventilation systems run regardless of demand and cooling systems operate unnecessarily because controls are poorly configured or no longer reflect how the building is used.

As a result, buildings can achieve acceptable EPC ratings while still wasting substantial amounts of energy.

This so-called performance gap is becoming increasingly significant. Improving how buildings operate in practice will become just as important as improving the building fabric itself.

Building controls provide one of the most effective routes to better performance

Building automation and controls provide one of the most effective and cost-efficient ways to improve operational building performance.

Modern Building Energy Management Systems (BEMS) continuously monitor, analyse and optimise building services in response to occupancy levels, weather conditions, internal temperatures and operational demand. Rather than relying on fixed schedules, systems can respond dynamically throughout the day, ensuring energy is only used when and where it is needed.

This enables building owners and facilities managers to reduce energy consumption, lower carbon emissions, improve occupant comfort and optimise operational performance.

Crucially, many of these improvements can be achieved without major structural interventions or costly refurbishment programmes.

The �鶹ԭ��'s white paper, Comfort, Efficiency and Health: The Untapped Potential of Building Energy Management Systems, demonstrates the scale of the opportunity.

Independent analysis found that advanced Class A BEMS deliver average energy and carbon savings of around 30%. The research also found that a typical 1,000m² office building can achieve a return on investment of 143% over ten years, with a payback period of approximately four years.

The same analysis found that advanced building controls represent the most cost-effective route to improving building performance over a ten-year period, delivering significant energy and carbon savings while generating a strong return on investment.

For organisations preparing for EPC B, that is a compelling proposition.

The benefits go far beyond energy savings

Improving building performance is not simply about reducing energy consumption.

Advanced building controls also deliver wider benefits for occupants, organisations and the economy.

The �鶹ԭ��'s research suggests that improved comfort in office environments could contribute an additional £12.75 billion in annual Gross Value Added by 2050, while helping to reduce workforce sickness absence by around 2 million days every year.

In education, the analysis estimates that 552,000 more pupils could have passed national examinations in 2024 if advanced Class A BEMS had been installed in every classroom.

These findings reinforce a wider point: building performance is not just an energy issue - it is also a productivity issue, a health issue and an economic issue.

As organisations place greater emphasis on employee wellbeing, operational resilience and sustainability performance, intelligent building operation is becoming a strategic business priority.

A missed opportunity for smaller buildings

While the �鶹ԭ�� welcomes the Government's ambition for larger buildings, it is disappointing that the new requirements will not extend to buildings less than 1,000 square metres. These buildings undoubtedly offer significant opportunities for energy savings and carbon reduction. However, they represent only a small proportion of the UK's total non-domestic building stock.

Thousands of smaller commercial buildings will remain subject to the existing EPC E requirement, with no confirmed roadmap for further improvement. Collectively, these buildings still consume substantial amounts of energy and represent a major opportunity to improve performance across the wider built environment.

Many of these buildings could achieve meaningful reductions in energy consumption through relatively straightforward operational improvements and upgrades to building controls.

While the Government's proposals represent welcome progress, the �鶹ԭ�� would like to see a clearer long-term pathway for improving the energy performance of smaller non-domestic buildings. If the UK is serious about reducing emissions, improving productivity and lowering energy costs across the economy, these buildings cannot be overlooked indefinitely.

Preparing for 2031 starts today

Although the proposed deadline may appear some way off, improving commercial buildings is rarely a quick process. ‍

Property owners may need to assess existing assets, prioritise investment, develop phased improvement programmes and coordinate upgrades across multiple sites. Organisations with large property portfolios may also need to balance compliance requirements against budget constraints and lease arrangements.

Building controls should therefore be viewed as an early priority rather than a final addition. By understanding how buildings are currently performing, organisations can identify where operational improvements will deliver the greatest return while helping to support future EPC B compliance.

Beyond EPC B

‍The Government's announcement is about more than meeting regulations. ‍

Industry attention is also shifting towards actual building performance. Initiatives such as the UK Net Zero Carbon Buildings Standard reflect a growing emphasis on how buildings perform in use rather than how they are expected to perform on paper.

The Government's announcement therefore presents an opportunity not only to improve compliance, but also to improve the way commercial buildings are managed and operated, delivering benefits that extend beyond energy savings to include lower operating costs, improved occupant comfort and stronger environmental performance.

The �鶹ԭ�� welcomes the Government's commitment to strengthening minimum energy efficiency standards for larger non-domestic buildings. While the proposals could have gone further by including a greater proportion of non-domestic buildings, they represent a positive step towards improving the performance of the built environment.

Building controls have a critical role to play in helping organisations meet these higher standards. Independent analysis undertaken for the �鶹ԭ�� has shown that advanced Building Energy Management Systems are among the most cost-effective measures available to improve building performance, delivering significant energy and carbon savings while generating a strong return on investment.

As organisations prepare for EPC B, building controls form an important part of the solution, helping building owners and operators improve performance, reduce energy consumption and maximise the value of their assets.

As the Government's proposals develop, the �鶹ԭ�� will continue to work with industry and policymakers to ensure building automation and controls remain central to delivering a more energy-efficient, productive and sustainable built environment.

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