An Energy Performance Certificate (EPC) is a document that details the energy performance of a building based on the standardised way that the building is used.

The EPC will detail the energy use, carbon dioxide emission and fuel costs of the building. The energy performance of the building is given a rating on a scale of A-G, with A being the most efficient and G the least efficient.

EPCs are now mandatory for all new buildings constructed after 1 May 2007. However, new legislation due to come into effect on 4 January 2009 will mean that all existing buildings will also require an EPC. Buildings when constructed, sold or rented out, including homes, public sector buildings and business premises will require an Energy Performance Certificate. The EPC will remain valid for a period of 10 years.

The EPC legislation for Scotland will come into effect from 4 January 2009.

From this date, all Scottish landlords and prospective sellers must provide Energy Performance Certificates to new and prospective tenants/ buyers.

The EPC must be made available free of charge at the earliest possible opportunity and no later than the time when written particulars are provided to a tenant or when a viewing is conducted or if neither of these occur, before any form of agreement is signed. Failure to adhere to these regulations can result in a penalty charge of around £200 for each breach.

Houses for sale now need to have a Home Report unless they went on the market prior to 1st December 2008.  Although you will not require a Home Report if your house is already on the market at 1 December, you will need to obtain an Energy Performance Certificate ("EPC") if your house will still be on the market after January 4, 2009. This is because there is a separate duty arising from European law to make the EPC available to any prospective buyer of the house after January 4, 2009.