28 Nov 2022

Extension to the period for the compulsory display of energy performance certificates in non-residential buildings

by David Warmback MBE, Partner, Durban, Suhail Ebrahim, Senior Associate, Durban,

On 8 December 2020, the regulations for the Mandatory Display and Submission of Energy Performance Certificates for Buildings (Regulations), promulgated under the National Energy Act 34 of 2008 (Act), was published. In terms of these Regulations, owners of buildings and organs of state had 2 years from date of publication thereof (7 December 2022) to publicly display energy performance certificates in non-residential buildings, and submit such certificates to the South African National Energy Development Institute (SANEDI). 

However, on 25 November 2022 the Minister of Mineral Resources and Energy published an amendment to the Regulations which granted a three-year extension for the display of these certificates to 7 December 2025.

Local media reports that only a fraction of non-residential buildings have obtained the required certificates, with SANEDI estimating that fewer than 300 buildings had lodged the certificates out of a possible 150 000 to 250 000. The recently gazetted amendments also include a requirement that building owners must register the type and size of a building and its energy performance within 12 months from 25 November 2022 with SANEDI, which maintains a register of all buildings.

The reason for the extension is no doubt due to various representations for extensions being made to the authorities, with very few building owners having complied to date. This must also be considered bearing in mind the serious onerous consequences of non-compliance as the penalty provisions of the Act provides that a person convicted for a contravention of the Act shall be guilty of an offence and be liable for a fine not exceeding R5 million or imprisonment for a period not exceeding 5 years, or both such fine and imprisonment.   

The Regulations define energy performance as being the net energy consumed in kilowatt hours per square meter to meet the different needs associated with the use of the building such as heating, hot water heating, cooling ventilation and lighting. The energy performance certificate, which must be prominently displayed in the foyer of a building, must reflect a rating based on the energy consumed per square metre which is from A to G, with A being the most efficient and G being the least.

The certificate, which is valid for 5 years from the date of issue, must be issued by an ‘accredited body’ as defined in the Regulations and must be submitted to SANEDI within 3 months from the date of issue. Presumably, once the 5-year validity period lapses, a new energy performance certificate must be issued.

For the Regulations to apply, the building must have a dominant occupancy classification as A1 (entertainment and public assembly), A2 (theatrical and indoor sport), A3 (places of instruction), or G1 (offices), which classifications are in terms of Regulation A20 of the National Building Regulations.

The building must also be in operation to meet a particular need associated with the use of the building for a period of two years or longer and must not have been subject to a major renovation within the past two years of operation. Certificates must be obtained for buildings with a total net floor area of over 1000 square metres if owned by organs of state, and over 2000 square metres if owned by other owners.

The Regulations aim to make owners of commercial buildings more aware of the  energy consumption in their buildings, and encourage them to reduce their electricity use, which is in the broader context of supporting climate change initiatives. While building owners have ample time to comply with these Regulations following the extension, they are reminded to ensure compliance sooner rather than later, and not leave to the last minute, given the onerous consequences of non-compliance.