Correction to circular on energy certificates from the Ministry of Environment and Energy

The Ministry of Environment and Energy issued a corrected circular with clarifications on the Energy Performance Certificate (EPC) and the entry of its details in the electronic application “Declaration of Real Estate Lease Information”. The corrections essentially concern the deletion of the paragraph on the transitional period for issuing and completing the EPC and the correction of the date for new building unit leases.

Specifically, the corrected circular states the following:

SUBJECT: Clarifications regarding the Energy Performance Certificate (EPC) and the entry of its details in the electronic application “Declaration of Real Estate Lease Information”.

Related:

Law 4122/2013 “Energy Performance of Buildings – Harmonization with Directive 2010/31/EU of the European Parliament and of the Council and other provisions” (A’ 42), as applicable.
Paragraph 3 of Article 14 of the Energy Performance of Buildings Regulation (B’ 407), as replaced by paragraph 3 of Article 58 of Law 4342/2015 (A’ 143) and in force.
POL 1013/07-01-2014 “Submission of information on real estate leases using electronic means of communication via the internet” (B’ 32), as applicable

This explanatory Circular is issued for the purpose of providing more complete information regarding the obligation set forth in paragraph 3 of Article 58 of Law 4342/2015, which states that ” For every property lease, the PEA protocol number must be entered in the electronic application “Declaration of Real Estate Lease Information” on the website of the General Secretariat for Information Systems (www.gsis.gr) .

The obligation to electronically register information on real estate leases is provided for in the relevant (c).

From 09.11.2015 – date of entry into force of Law 4342/2015 [ref. (b)] – the persons liable under the above paragraph must enter the details of the Energy Performance Certificate (EPC) in the relevant electronic application (provided that the leased property is subject to the obligation to issue an EPC). The validity of the EPC can be verified on the basis of the protocol number – A.P. and the 16-digit security number – A.A. (see image) by entering these details in the relevant field “EPC Validity Check:” of the Energy Inspection File (www.buildingcert.gr).

The EPC of a building or building unit reflects the energy rating of a building or building unit, where “building unit” is defined as “a section, floor, or apartment within a building that has been designed or converted to be used separately” – allowing the owners or tenants of the building or building unit to compare and evaluate its energy performance. It is valid for 10 years from the date of issue. As the EPC relates to the property (building or building unit) and not to individuals, it is not necessary to issue a new EPC during its ten-year period of validity, provided that there have been no changes to the building or building unit that constitute a major renovation (large-scale renovation), as defined in paragraph 12 of Article 2 of Law 4122/2013. The EPC is issued for a building or building unit of a category and use that falls within the scope of Law 4122/2013 “Energy Performance of Buildings – Harmonisation with Directive 2010/31/EU of the European Parliament and of the Council and other provisions.” , in accordance with the Energy Performance of Buildings Regulation (KENAK) and the Technical Instructions of the Technical Chamber of Greece (TOTEE) issued by virtue thereof. The EPC is issued for a building or building unit and not in accordance with the building permit (construction permit), ownership status, etc. Therefore:

  • In building complexes (e.g., separate wings), at least one EPC is issued per building.
  • For properties that have been functionally merged (e.g., shops), a PEA is issued for the resulting building or building unit.
  • No EPC is issued for part of a building unit (such as a commercial space within a building unit or a residential room), as the smallest part of a building for which an EPC can be issued is the building unit.

Regarding the use (type) of the property:

A building that has more than one use is classified as mixed use. In this case, each section is classified according to its own use and the energy inspector examines whether an EPC is required separately for each use. Especially in cases where it is necessary for the operation of a single organization to have more than one use coexisting in the same building, exclusively for the main use, then the building is classified as a whole according to the predominant use (e.g. “hospital” for a shop inside a hospital, “hotel” for a restaurant inside a hotel).

It should be noted that, in the case of a building with a single use, it is not necessary to issue an EPC for each individual building unit, but the certification of the building units may be based on the certification of the entire building (e.g., in a multi-story building with building units—apartments used as residences, the EPC of the apartment building can be used as the EPC for each residence—apartment).

According to paragraph 6 of Article 12 of Law 4122/2013 in conjunction with paragraph 7 of Article 4 of the same law, the following categories of buildings are EXEMPT from the issuance of an EPC:

  1. Monuments (ancient properties, as defined in Article 6(4) of Law 3028/2002, as applicable. Consequently, for buildings designated as preservable or for buildings located within designated historical sites or traditional settlements, a PEA must be issued, provided that these buildings are not monuments).
  2. Buildings used as places of worship (of a known religion)
  3. Industrial facilities, small industries, workshops (Buildings or building units housing industries, small industries, workshops, laboratories, services with significant electrical and mechanical equipment)
  4. Temporary buildings with a useful life not exceeding two (2) years (Buildings that are installed and removed in prefabricated parts, do not require extensive infrastructure and permanent waste collection facilities, e.g. containers, isoboxes, tol boxes, etc.)
  5. Warehouses, agricultural buildings, and non-residential agricultural buildings (buildings or building units used for storing goods, keeping objects, or housing animals)
  6. Vehicle parking areas and fuel stations (buildings or building units used for parking vehicles or for fuel stations or car washes)
  7. Individual buildings with a total usable area, i.e. the gross floor area of the enclosed covered spaces of the building intended to serve the needs of its main use, of less than fifty square meters (50 m²).

In any case, an EPC is not issued for categories of buildings where energy consumption is not intended to regulate indoor climate conditions—in order to ensure the comfort of their users—and, therefore, they are not considered buildings within the meaning of Law 4122/2013. Consequently, in cases where there is no formed shell, an EPC is not issued (e.g. in unfinished, roofless or abandoned buildings or building units). It should be noted that, in the event of failure to issue an EPC, a fine of between one thousand (1,000) and ten thousand (10,000) euros shall be imposed on the person liable under the law, in accordance with Article 20 of Law 4122/2013.

The liable party is defined as the owner of the building or building unit or the building manager acting as the owners’ agent. According to paragraph 1 of Article 12 of Law 4122/2013, the issuance of an EPC is mandatory (unless there is a valid EPC) – among other things – “when leasing a building or building unit to a new tenant.” Furthermore, according to paragraph 2 of the same article, “when selling or leasing buildings or building units, the owner shall show the EPC or a copy thereof to the prospective new buyer or tenant and deliver it to the new buyer or tenant.”

Furthermore, in accordance with paragraph 3 of Article 2 of KENAK, the above obligation has been in force since January 9, 2011, and applies: from January 9, 2011, to new building leases, and from July 9, 2011, to new building unit leases.

A property lease is defined as a contract whereby the lessor undertakes to grant the lessee the use of a building or building unit (leasehold) to the lessee and the lessee to pay the agreed price as rent for the duration of the lease. The existence and availability of the EPC during the lease is confirmed by entering its details in the Real Estate Lease Information Statement, which has been mandatory since November 9, 2015.

Taking the above into account, there is an obligation to have a valid PEA and to enter its details in the electronic application of the Real Estate Lease Information Declaration, provided that all of the following conditions are met:

  • required by law, the issuance of a PEA (the category and use of the building/building unit falls within the scope of Law 4122/2013)
  • it concerns the drafting of a new lease agreement for a new tenant who is moving into the leased property for the first time, and
  • the submission of the Real Estate Lease Information Statement (and not the date of drafting of any lease agreement) took place on or after November 9, 2015.

Consequently, the above obligation does not exist:

  • in the event of renewal or extension of the lease agreement, as the lessee remains the same for the same property,
    when, for any reason, the lease agreement is transferred (e.g., in the event of a business transformation).

Finally, for leased building units with a total usable area of less than fifty square meters (50 m²), for which the issuance of an EPC has been mandatory since January 1, 2016, there is no obligation to have a valid EPC and to register its details in the electronic application of the Real Estate Lease Information Declaration, provided that:

  • the date of drafting of the lease agreement, as entered in the “Date of drafting of agreement” field of the Real Estate Lease Information Statement, is prior to January 1, 2016, or
  • the date of submission of the Real Estate Lease Information Statement is prior to January 1, 2016, in the event that no private lease agreement has been drawn up.

The General Secretary of Energy & Minerals and Raw Materials Materials

Michael Verroiopoulos