We recently collaborated with our sister company, Stroma, on the latest episode of their podcast series, "Making Sense of Energy Compliance". Our very own Sarah Edwards joined Stroma's resident expert, Stuart Oakes, to break down the essential legal requirements around TM44 inspections, EPCs, and DECs that building managers, commercial landlords, and businesses need to navigate.
As part of the wider Phenna Group, ACI Reports and Stroma regularly support organisations across the built environment. While Stroma provides a broad range of compliance, testing, inspection and consultancy services throughout the construction and property lifecycle, ACI Reports specialises in energy compliance services, helping clients meet their legal obligations with confidence.
You can listen to the podcast episode in full below, or read on for an overview of your energy obligations and how you can avoid costly penalties.
Episode 6: Making Sense of Energy Compliance
Key Takeaways
- Three Core Certificates: Under energy compliance, you must understand TM44 air conditioning inspections (system efficiency), EPCs (asset potential), and DECs (actual operational energy use).
- Actionable Improvements: Following the official recommendations in these reports can help lower your carbon footprint, reduce utility bills, and keep your operations compliant.
- Centralised Tracking: The UK government logs all certificates on a central database, making it incredibly easy for local authorities to spot expired energy certificates.
- Enforcement Risks: Local authorities actively enforce compliance regulations for energy, meaning failing to maintain valid energy certificates may lead to financial penalties.
- Trusted Services: ACI Reports offers leading services and expertise to help you ensure compliance with emerging regulations for the energy performance of buildings.
TM44 Air Conditioning Inspections Explained
Commercial air conditioning systems consume significant amounts of energy. Over time, inefficient operation, poor controls, ageing equipment, and inappropriate system sizing can increase running costs and reduce overall performance.
Given the impact this has on energy consumption and carbon emissions across the UK, legislation requires qualifying systems to undergo periodic inspections to ensure they’re working as efficiently as possible. These are known as “TM44 inspections”.
A TM44 inspection provides an independent assessment of how efficiently your air conditioning systems are operating. It follows guidance developed by the Chartered Institution of Building Services Engineers (CIBSE) and forms part of the Energy Performance of Buildings Regulations.
When Is a TM44 Inspection Required?
A TM44 air conditioning inspection is required where the combined cooling output of the air conditioning systems exceeds 12kW. This threshold applies to the total capacity of all connected systems within the building. For commercial buildings, these assessments are required every five years and must be carried out by an accredited energy assessor.
What Happens During a TM44 Inspection?
During a TM44 inspection, an energy assessor will review the installation, operation, and maintenance of the air conditioning systems to identify opportunities for improved efficiency.
This typically includes:
- Reviewing maintenance and servicing records
- A visual inspection of the external condensers
- Assessing system controls and operating schedules
- Evaluating whether the equipment is appropriately sized for the building
- Identifying potential energy-saving opportunities
Following the assessment, a TM44 report is produced and lodged on the national register. Alongside confirming compliance, the report provides practical recommendations to help you reduce energy consumption, lower operating costs, and improve system performance.
What Are the Penalties for Non-Compliance?
Local authorities and trading standards departments can enforce TM44 regulations. Where a required inspection has not been completed, financial penalties can be issued and repeated until compliance is achieved. On top of this, organisations will lose the opportunity to identify inefficiencies that may be increasing operating costs unnecessarily.
At ACI Reports, we carry out accredited TM44 inspections nationwide, helping organisations maintain compliance while gaining valuable insight into their air conditioning performance.
Understanding Display Energy Certificates (DECs)
Unlike an EPC, which assesses the potential energy performance of a building, a Display Energy Certificate (DEC) measures actual energy consumption of gas, electricity, and other fuels over a 12-month period. This makes DECs particularly valuable because they reflect how a building performs in real-world operation.
When Is a DEC Required?
Under government legislation, a DEC is required where a building:
- Is occupied by a public authority
- Is frequently visited by members of the public
- Has a total useful floor area exceeding 250m²
The certificate provides an energy rating from A to G (where A is very efficient and G is the least efficient) and must be displayed prominently within the building.
How Long Is a DEC Valid?
The validity of a building’s DEC depends on the size of the building.
For buildings larger than 1,000m²:
- DEC valid for 12 months
- Recommendation Report valid for 7 years
For buildings between 250m² and 1,000m²:
- DEC valid for 10 years (with a desktop exercise carried out annually)
- Recommendation Report valid for 10 years
The accompanying Recommendation Report provides practical guidance on improving energy efficiency and reducing consumption.
What Happens If You Don’t Have a Valid DEC?
Local authorities can issue penalties where organisations fail to obtain or display a DEC when required. Beyond compliance, DECs also provide valuable insight into how buildings are performing and often highlight opportunities for operational improvements and energy savings.
ACI Reports works with schools, universities, local authorities, NHS Trusts, emergency services, and public sector organisations across the UK to deliver accredited DEC assessments and ongoing compliance support.
Non-Domestic Energy Performance Certificates (EPCs)
A non-domestic Energy Performance Certificate (EPC) assesses the energy efficiency of a building based on its construction, building fabric, heating, cooling, lighting, and fixed services.
Commercial EPCs are generally required when a property is constructed, sold, or let. The certificate provides an efficiency rating from A to G and remains valid for ten years.
EPCs and Minimum Energy Efficiency Standards (MEES)
For many landlords, EPC compliance extends beyond simply obtaining a certificate. The Minimum Energy Efficiency Standards (MEES) regulations currently restrict the letting of commercial properties with an EPC rating below E unless a valid exemption has been registered.
As government policy continues to evolve, many property owners are already reviewing their portfolios and considering future improvement strategies to prepare for potential tightening of standards (current proposed targets suggest a minimum EPC rating of B by 2030).
If a commercial landlord ignores the MEES government frameworks, they risk a penalty of up to £150,000 depending on the property value, as well as damage to their reputation with details published on a public register.
Why EPC Ratings Matter
A strong EPC rating can deliver benefits beyond compliance, including:
- Improved attractiveness to prospective tenants
- Reduced energy costs
- Enhanced ESG performance
- Increased asset value
- Greater resilience against future regulatory changes
As experienced energy compliance consultants, ACI Reports regularly help landlords, property managers, and building owners understand their EPC obligations and identify opportunities for improvement.
Beyond Compliance: How Energy Certificates Deliver Value
While compliance is often the initial driver, the greatest benefits frequently come from acting on the recommendations contained within TM44 reports, EPCs, and DECs. These assessments provide organisations with valuable information about how their buildings consume energy and where efficiencies can be achieved.
Potential benefits include:
- Lower utility costs
- Reduced carbon emissions
- Improved building performance
- Better occupant comfort
- Stronger ESG credentials
- Increased attractiveness to tenants and investors
As energy costs continue to place pressure on operational budgets, understanding building performance has become increasingly important for organisations across both the public and private sectors.
Compliance is only one part of the picture. Alongside ACI Reports' energy assessment and certification services, Stroma provides a broad range of building energy performance services to help organisations improve efficiency, reduce carbon emissions, and make informed decisions about future building upgrades.
Working with Experienced Energy Compliance Consultants
Choosing the right provider is an important part of maintaining energy compliance efficiently. At ACI Reports, our accredited assessors support organisations across the UK with:
- TM44 air conditioning inspections
- Display Energy Certificates (DECs)
- Energy Performance Certificates (EPCs)
- F-Gas regulation compliance
- Section 63 (Scotland)
- Energy Savings Opportunity Scheme (ESOS)
- Ongoing energy compliance management and consultancy
Our consultative approach focuses on helping clients understand their obligations, maintain compliance, and identify opportunities to improve building performance. Whether you're responsible for a single property or a nationwide portfolio, we can help!
FAQs About Building Compliance Regulations for Energy
What’s the difference between a DEC and an EPC?
In the UK, an Energy Performance Certificate (EPC) measures the potential energy efficiency of a building based on its design and fixed services. A Display Energy Certificate (DEC), on the other hand, measures the actual energy consumed by a building over a 12-month period.
I have recently serviced my air conditioning system; do I still need a TM44 inspection?
Yes. A TM44 inspection is a separate legal requirement from an air conditioning service. Servicing focuses on ongoing maintenance and operational performance, while a TM44 inspection assesses energy efficiency and compliance. Simply contact our friendly team at ACI Reports to arrange a consultation.
Who can carry out energy compliance assessments?
Compliance assessments for energy performance must be completed by appropriately qualified and accredited energy assessors who are registered with an approved accreditation scheme. You can find a registered provider on the government website, or ACI Reports and Stroma Built Environment can help.
How can I check whether my certificates are still valid?
Most energy compliance certificates are lodged on official government registers. If you're unsure about the status of your EPC, DEC or TM44 report, ACI Reports can help verify your compliance position.
What happens if my certificate has expired?
If a required energy compliance certificate has expired, it’s important to arrange a new assessment as soon as possible. Our team can help you understand what is required and restore compliance quickly.