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The European Directive on Energy Performance of ÐÇ¿Õ´«Ã½s (EPD) has several key elements which have a potentially enormous impact on the building services industry.

Public authority buildings of over 1000 m² useful area and, in the words of the Directive, 'buildings frequently visited by the public' will have to display certificates indicating their level of energy efficiency.

Refurbished buildings, of over 1 000 m² must demonstrate that they have used cost-effective energy efficiency methods. The Directive adds that: 'It should be possible to recover additional costs involved in such a renovation within a reasonable period of time in relation to the expected technical lifetime of the investment by the accrued energy savings.'

In new building projects the UK's ÐÇ¿Õ´«Ã½ Regulations have brought in many energy efficient drivers, but the Directive adds that the 'technical, environmental and economic feasibility of alternative systems' should be considered before construction. These systems include decentralised energy supply based on renewable energy; chp; district or block heating or cooling if available; and heat pumps under certain conditions.

As a key part of the Directive's aim of creating market transformation, building tenants will have to be given an energy certificate for the building they are going to occupy when they move in. This means that certificates will be presented on sale or change of tenant. This will also include advice on how to make the building more energy efficient.

As well as whole building labelling, the EPD emphasises the checking of boilers and air conditioning systems.

For the latter, inspection should include an assessment of the air conditioning efficiency, and the sizing compared to the cooling requirements of the building.

The driving force behind the Directive is a determined effort by Europe to reduce the amount of energy used in buildings. This currently stands at 40% of energy produced in Europe, and this is a growing proportion.

The opening comments within the Directive itself state: 'Demand management of energy is an important tool enabling the Community to influence the global energy market and hence the security of energy supply in the medium and long term'. However, in spite of its apparent clear-cut approach, there are a number ambiguities and caveats within the EPD.

The driving force behind the Directive is a determined effort to cut energy use in buildings from its current level.

David Strong, managing director of the energy division of the ÐÇ¿Õ´«Ã½ Research Establishment, comments: "There is lots of use of the word 'may' in the Directive, which implies that the EPD provides a high degree of subsidiarity. This allows domestic governments to take a light touch, or heavyweight approach." He also points out that some phrases can be translated differently in countries across Europe. "There is mention of 'industrial sites' being exempt. Does this mean only factories, or does it include office buildings? The Germans have read this as meaning only process buildings are exempt."

Another area of contention is what constitutes a public building? Wording in the Directive reads: 'institutions providing services to the public'. This could mean only local government buildings, libraries, sports centres etc. But it might also be interpreted to include supermarkets, banks and other retail outlets.

Inspection of equipment is also a difficult area. Both Steven Rees, marketing manager for Mitsubishi Electric Air Conditioning and Stewart Purchase, managing director of Viessmann UK agree that annual checks on boilers and air conditioning systems are a good idea.

"These systems should be checked annually anyway," says Rees. But he points out that even though Mitsubishi Electric has been trying for some time to encourage users to do so, it's an uphill struggle. "We offer three year warranties, with log books on our equipment. In the past manaufacturers used the warranty as a way of securing sales, now we say that unless there's a record of maintenance, there's no warranty. Some people are shocked by this, and it is very difficult to get these things going."

Annual 'MOT's for air conditioning are significant, because according to the EPD, it's not simply a case of checking one piece of equipment, but the whole air conditioning system. The situation with boilers is slightly different. Rather than physical checking of equipment, the Directive allows for 'provision of information' – ie user-supplied data will suffice. However, in this case the government would have to show that energy efficiency levels were the same as if boilers were being independently assessed.

Even so, Stewart Purchase says that encouraging regular checks will be quite a task. "On the domestic side, there has been a more strict approach to maintenance and checking. There has been discussion about extending that to commercial equipment, but it hasn't moved forward. With boilers in commercial buildings you have to bear in mind also that how it's controlled has a very big influence on how efficient it is. Will all these criteria be taken into account? "

John Field, director of Target Energy Services agrees. "Installation and use are very important, especially with condensing boilers. Those which aren't condensing won't be caught by the Directive."

Purchase adds that boilers have been treated poorly by building owners and occupants, with long periods of time between maintenance checks – if they're checked at all. "Sometimes we arrive to look at a boiler and services records don't exist. No one has been near the boiler for years, and not for want of explaining by manufacturers to the facilities manager that maintenance is required. We could follow the German model, where both homes and commercial boilers have an MOT. A log book has to be produced."

One of the major problems facing the construction and property sectors is a lack of manpower to carry out the required checks. David Strong says: "In the case of domestic certification alone, it has been calculated that allowing for half a day per dwelling it would need 7500 to 8000 people working full time. The Danes allow one day per dwelling."

Robert Cohen, principal energy consultant of Energy for Sustainable Development (ESD), comments: "There is a possible time extension open to the UK if the government can show there aren't enough inspectors available."

The Directive calls for 'qualified and/or accredited experts'. The accreditation aspect could become crucial if assessors are to be covered by professional indemnity insurance. "We have to bear in mind the legal aspects of checking," says Cohen. "Who provides the information that's going to be used to classify a building's energy efficiency? It's been the experience in Denmark that if you make the building owner provide the information, you reduce liability problems."

Of course, whatever the ambiguities and other potential pitfalls, many engineers will already be asking exactly how a building's energy performance can be calculated in such a way as to produce an A to G grading. There are a number of ideas.

"The question is how can cost effective energy performance measurements be carried out?" asks David Strong. "Dynamic building simulation has been suggested. But gathering data is very difficult." Robert Cohen agrees that modelling may not be the most appropriate approach: "Producing a label for new buildings, or refurbishments, is quite easy for the UK. Existing buildings are more challenging. Doing any kind of modelling of an existing office building is fraught with problems, not to mention the high cost. A new occupier might also imply a change of use, so energy patterns could be very different."

John Field adds: " Where metered data is available it provides crucial information about how a building is actually performing – and also shows when management savings can make highly cost-effective savings. This approach to labelling is being progressed by work on the six nation Europrosper project, and CIBSE's TechncialMemorandum 22."

Time and cost are both important considerations when deciding on a method of assessment. The BREEAM approach is based on a weighted checklist. This also has the benefits of being simple and repeatable, and is preferable to complex data collection and analysis.

Stewart Purchase comments: "It may be possible to take a two level approach. You could use the checklist initially, but if the building falls below the D/E grade, then there must be a further and more detailed check."

The Directive requires new tenants and owners to be given a certificate, and also advice on how to improve the energy efficiency of the building. But as Cohen points out: "They don't have to carry out this advice. What will make them do this? The label is a very powerful driver."

The manufacturers agree with this. "No one really uses the Enhanced Capital Allowance scheme to the full. But specifiers always ask that your equipment is on the list."

"The ECA label has become a brand in itself," says John Field. "The building label could become very important in the same way." He also adds that the property industry isn't currently very keen on the idea of building labelling. "It's very important that building operators and managers see this as a positive thing. If you can separate problems with the hardware from problems with the management, then you can offer building managers support rather than penalising them. You must look to building assets, and also to overall performance."

Cohen also says that making the label a positive motivator is vital, hence the requirement for it to be displayed in public buildings. "The Directive says that building operators must be given advice on how to make the property more energy efficient – but not that they have to carry this out.

"The label is very important in encouraging them to do this." He points out though, that in refurbishment projects, it must be shown that these energy efficiency measures have been implemented.

It’s important that building owners see the energy label as a positive thing. The label could become a brand in itself.

"The Directive's aim is market transformation," says Strong. "It is trying to influence tenant decisions. Energy labelling for a building needs to contain: education to the prospective tenant as to the energy performance of that building. This should be supported by information on energy consumption of the building compared to benchmarks – particularly for continuing occupants."

The Directive is set to have a major influence on the face of construction, (both domestic and commercial) across Europe. Wording has been used which emphasises the need for a pan-European solution, calling for 'a common approach...(which) will contribute to a level playing field...and will introduce transparency for prospective owners or users with regard to energy performance in the Community property market'. A common approach implies shared learning across Europe, and the Europrosper project is looking at ways in which energy labelling can work across the Community.

Certain aspects of energy use have been identified as necessary to any method used for calculating energy performance of buildings. These include thermal characteristics such as airtightness; natural ventilation; passive solar systems and solar protection; and position and orientation of buildings.

The Directive must be implemented by member states no later than 4 January 2006. There is an additional three year period to allow members to apply the certification of buildings and inspection of boilers and air conditioning systems – recognition that the number of assessors required is causing problems. This means that by 2009 at the latest, the EPD will be an active part of construction legislation – not long to get ready.

But the news isn't all bad. ÐÇ¿Õ´«Ã½ services engineers could view this as an opportunity to expand their consultancy base.

Julian Amey, chief executive of CIBSE says that the Institution is already taking a lead. "It's about knowledge transfer. We are communicating between Institution, academia and industry." CIBSE also aims to be a practical demonstration of energy efficiency and carbon reduction by turning its Balham hq into a Carbon 60 exemplar – reducing the building's carbon emissions by 60%. And David Strong of BRE adds: "Perhaps we shouldn't say there is a skills shortage for assessment, but a skills opportunity. This is a big opportunity for the building services community and advice providers such as CIBSE, RIBA, RICS and the Institute of Energy. It could become a whole new industry in its own right – or a branch of ours."

It is really up to the UK government to ensure that the Directive is an opportunity, not only for our business, but also for the environment.

As Robert Cohen says, the EPD is open to interpretation: "There is deliberate ambiguity in the Directive, which has enabled it to be accepted very quickly. But each state has to wrestle with the ambiguities. There is therefore a spectrum of possible implementation. What will the UK do along that spectrum?"

This is an important question. At the moment there are three government departments with responsibility for putting the Directive into UK law: Defra, the DTi and the Office of the Deputy Prime Minister.