BPF Office ABI Landlord’s Energy Statement ABI Landlord Statement Guidanc… · Landlord’s...

_______________________________________________________________________________ Registered Charity 1091630 Registered Address 74 Chancery Lane, London WC2A 1AD�

BPF Office ABI

Landlord’s Energy Statement

Guidance and Specification Version 2.3 April 2007

Prepared by:

Mark Standeven and Bill Bordass Usable Buildings Trust

BPF Project Team: F Baber BPFM Smith BPF R Fisher Broadgate Estates J Searing Hermes DFarebrother

Land Securities

F Tse Land Securities M Stephens PruPIM A Lamb Standard Life G Baxter Standard Life R Ratcliffe St Martins D Whiter Workspace Group

Landlord’s Energy Statement (LES) Guidance - April 2007 Version 2.3 www.usablebuildings.co.uk�

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_______________________________________________________________________________ Registered Charity 1091630 Registered Address 74 Chancery Lane, London WC2A 1AD�Comments to [email protected] Tel. 01225 429 922

Title: BPF Carbon Trust – Office Energy ABI1Authors Mark Standeven and Bill Bordass Date: 30 April 2007 Subject: The Landlord’s Energy Statement (LES) – Guidance and Specification Version 2.3 to accompany V2.3 Example Excel Wookbook

Summary This guidance and specification documentation has been written to support the implementation of the Landlord’s Energy Statement. The documentation will be further developed in response to the ongoing technical and business development of the LES-TER process during 2007.

Section 1 - Description of the Landlord’s Energy Statement

Section 2 - Creating a Building Average Landlord’s Energy Statement

Section 3 - Creating a Single Tenancy Landlord’s Energy

Statement

Section 4 - Example LES Excel Workbook Section 5 - LES Development Log Section 6 – Glossary & Bibliography

1 Assessment, Benchmarking and Improvement.


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Section 1

Description of the Landlord’s Energy Statement 1 Introduction The Landlord’s Energy Statement (LES) is the most important outcome of BPF’s Office Energy ABI project, sponsored by the Carbon Trust in 2006-07. The LES can accompany the annual service charge accounts and tell each tenant in a building how much energy the landlord has used on their behalf in a given year in providing energy services to their demises and to the common parts of the building. It can also show the associated carbon dioxide emissions and include benchmark comparisons. 2 Why have a Landlord’s Energy Statement? The LES has the following advantages: • It could become an industry standard output format that provides clarity about the

energy use and carbon dioxide emissions attributable to each tenant. • It can be combined with proposed annual energy statements for direct energy supplies to

the tenant (e.g. by the utilities) to give a complete picture of energy use within the tenant’s demise.

• It can help to motivate landlords, tenants and managing agents to reduce energy use and carbon dioxide emissions.

• It can provide useful information for environmental and corporate responsibility reporting and benchmarking by both landlords and tenants.

• It will support and complement the new RICS Code of Practice on service charges, which came into force in April 2007.

3 LESs and the Energy Performance of Buildings Directive The European Union’s Energy Performance of Buildings Directive (EPBD) is being brought into force between now and January 2009. Amongst other things, the EPBD requires buildings to have energy certificates. A Statutory Instrument for implementing the EPBD in England and Wales was tabled by the Communities and Local Government (CLG) Department on 29 March 2007. This requires: • Energy Performance Certificates (EPCs) when a building is constructed sold or let. These

are the responsibility of the owner and are valid for ten years. They are based on a theoretical “Asset Rating” calculation, which estimates the energy performance of the building’s heating, cooling, hot water, ventilation and lighting systems.

• Display Energy Certificates (DECs), based on a building’s actual annual energy use for all purposes, the “Operational Rating”. DECs are the responsibility of the occupier and are valid for one year. They will initially be required in certain public or public-funded buildings or tenancies over 1000 m2 gross floor area, which members of the public visit.

CLG has also announced its intention to consult on applying Operational Ratings to a wider range of public and commercial buildings. These may include rented offices. Where tenants (e.g. public sector organisations occupying over 1000 m2 in a building) are required to prepare and display DECs, the LES will provide them with the necessary information on the energy use and performance of the landlord’s services. Tenants can then put this together with their own information on any other energy or energy services they purchase directly to run their demise and be able to obtain their own certificates and recommendations for energy-saving measures. This will provide more incentives to improving energy and carbon efficiency than certifying the building as a whole.


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The LES also provides valuable information to tenants who are not required to obtain DECs, and will ease the way to the wider implementation of Operational Ratings, if required. 4 What does a statement look like? The first stage of the ABI project has developed the format and content of the LES as an industry-standard output specification. The current version has two pages: • The first of these (figure 1, on the next page) includes a summary and benchmark

comparison, plus a graphical comparison of performance over the previous four years. • The second (figure 2, on the following page) provides supporting detail. These are accompanied by more detailed guidance notes, and an Excel workbook that does the calculations. At the current stage we have a working demonstration of the concept. This will be undergoing further development during 2007-2008 to include testing on building portfolios and further coordination with Government requirements for Display Energy Certificates; and with technical support from CIBSE and other organisations. 5 How can I operate it? The development of ABI project in 2006-07 saw the LES as principally an output format and specification, that would be integrated into a portfolio manager’s data management systems. However, as convergence with governmental and other requirements has been occurring since late 2006, opportunities for other delivery routes (e.g. via a website) are now being considered as part of the longer term business development plan. Meanwhile, the Excel workbook which accompanies these guidance notes is an advanced example that allows people to familiarise themselves with the procedure. The workbook can be used to produce a whole-building summary which will be useful for statistical purposes within a portfolio and for industry databases. The workbook can also be used to report a tenancy-only summary. Exactly how the energy is allocated to individual tenants will vary from building to building. The ABI project attempted to develop standard allocation software and a “building summary” form, but because the allocation involves a combination of technical, legal and commercial issues, the property companies involved preferred to implement their allocation procedures in their own ways.


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LANDLORD'S ENERGY STATEMENT Year : 2005123 Green Square, London, ABC 123 Page 1 of 2Floors 1 to 6, Tenancy OnlyAnnual energy used by LANDLORD'S SERVICES ONLYThe Landlord DOES NOT provide separate direct energy supplies to the tenant Version 2.0 Example

Summary and Benchmark ComparisonTenants wishing to calculate their total energy use will need to combine the data here with that for all other fuel and energy they purchase directly

Energy use, emissions, performance indicators and gradings Benchmarks used: les-ter V1 April 2007 ddc10Landlord's Service Type: Full AC

Environmental Performance : Performance indicators Benchmark comparisons, using nett lettable area (NLA)

76.3 kgCO2/m2

7.1 kg CO2/ft2 90.0 kg CO2/m2

Energy Efficiency :3%

102.4 kWh/m2

9.5 kWh/ft2 105.0 kWh/m2

43%91.2 kWh/m2

8.5 kWh/ft2 160.0 kWh/m2

348.6 kWh/m2

32.4 kWh/ft2 420.0 kWh/m2

1.0 kgCO2/m2

0.1 kg CO2/ft2 1.3%

Weather

Fuel and weighted thermal

Electricity Fuel and thermal Electricity

Total weighted energy

Onsite renew-ables

Degree Days

91 102 20 56 76 1 1,983 15%100 100 35 50 80 10 2100 50%n/a n/a n/a n/a n/a n/a n/a 0%n/a n/a n/a n/a n/a n/a n/a 0%n/a n/a n/a n/a n/a n/a n/a 0%

Emissions reductions by accredited offsite measurestonnes CO 2 % kg/m 2 Notes

Accredited offsite renewable generation 430 14.6% 11.3 Welsh Wind FarmAccredited green electricity purchases 125 4.3% 3.3 TruGreen 100% Renewable Tariff

Accredited carbon offsets 1550 52.8% 40.8 Kyoto CERs from China

Additional Explanatory Notes

Landlord or managing agent Tenant Tenancy References Statement DetailsProperty Landlord Co First Bank Property number DateCentral HQ Floors 1 to 6 Tenancy number Period Start Acacia Ave 123 Green Square Nett lettable area m 2 Period EndLondon London Nett lettable area ft 2 Statement NoZF1 2BJ ABC 123XY Zavier <contact> Joe Bloggs Issuer AN Other phone 01245 678 91000XXX YYYYYY <phone> 0234 567 8100 ref fjgjgfkqfkq email [email protected]@yy.co.uk <email> [email protected] from X1 Agents

100XYZABC409,029

The LES-TER concept has been developed by the British Property Federation and the Usable Buildings Trustwith financial assistance from the Carbon Trust. © BPF & UBT 2007

Example

< Enter Any Extra Notes to appear on Landlord's Statement Here >

Savings per unit area

Lower than Typical

Lower than Typical

Typical Benchmark :

17%

2,899

Exam

pleof

grad

ingpr

esen

tation

Statement for : Tenancy Only

15%

kWh

15%

3%

43%Benchmark Ratio 0.57

Tonnes CO 2

PROV

ISIO

NALB

ENCH

MARK

S

Typical Benchmark :

Typical Benchmark :

Typical Benchmark :

Lower than Typical

Lower than TypicalkWh

13,246,800

CO2 Bench-mark ratio

d

dBenchmark Ratio 0.97

c

Benchmark Ratio 0.83

01-Jan-200601-Apr-200431-Mar-2005

12342190

38,000

Carbon dioxide emissions

Benchmark Ratio 0.85

38.5

Statement number

Tonnes CO 2

3,889,300

3,465,600

n/an/a

Landlord's Energy Supplied (kWh/m 2

NLA)Carbon Dioxide Emissions

(kg CO 2 per m 2 NLA)

100XYZABCAB10002200

n/a

Year on year performance

Year2005

CO2 saved by onsiterenewable generation

Annual electricity use

Annual combustion fuel and weighted thermal energy use

Total weightedannual energy use

kWh

DescriptionRoof PV panel & wind turbine

percentageof total

emissions

d 17%

2004n/an/an/a

Insert your company logo

here

Annual Emissions (kg CO2 per m2 NLA)

0 25 50 75 100

20052004

n/an/an/a

Fuel and thermal Electricity

Figure 1 Example LES Summary page 1

Landlord’s Energy Statement (LES) Guidance - April 2007Version 2.0www.usablebuildings.co.uk

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_______________________________________________________________________________Registered Charity 1091630 Registered Address 74 Chancery Lane, London WC2A 1ADComments to [email protected] Tel. 01225 429 922

LANDLORD'S ENERGY STATEMENT Year : 2005123 Green Square, London, ABC 123 Page 2 of 2Floors 1 to 6, Tenancy OnlyAnnual energy used by LANDLORD'S SERVICES ONLYThe Landlord DOES NOT provide separate direct energy supplies to the tenant Version 2.0 Example

Technical DetailTenants wishing to calculate their total energy use will need to combine the data here with that for all other fuel and energy they purchase directly

1986 198650,000 m2 38,000 m2

Hours of Use EXTRA HOURSStart Finish Hours/wk Start Finish Hours/wk Hours/year Common parts

Mon - Fri 07:30 18:00 52.5 07:00 19:00 60 Tenanted areaSat 07:30 12:00 4.5 as contract as contract 4.5Sun none none 0 as contract as contract 0 Do Landlord's Services include Energy for Lifts? >Total per week 57 64.5Total per year 2,964 3,354 0

0% (the percentage of available space-time empty in the year)

Start Date Usage Units Usage in Units kWh/Unit 365day Use inkWh kWh/m2 Factor kWh kWh/m2 kg/kWh Tonnes CO2 kg CO2/m2

1 Mains Electricity 31-Mar-2004 Electricity, kWh 3,900,000 1 3,889,344 102.4 2.50 9,723,361 255.9 0.550 2,139.1 56.32 Communal Electricity n/a n/a 0 0 0 - 1.00 0 0.0 0.550 0.0 0.03 Natural Gas 12-Dec-2004 Natural Gas, kWh 2,400,000 1 2,275,325 59.9 1.00 2,275,325 59.9 0.194 441.4 11.64 Oil n/a Oil, litres 100,000 12 1,200,000 31.6 1.00 1,200,000 31.6 0.265 318.0 8.45 LPG n/a n/a 0 0 0 - 1.00 0 0.0 0.234 0.0 0.06 Coal n/a n/a 0 0 0 - 1.00 0 0.0 0.291 0.0 0.07 Biomass n/a n/a 0 0 0 - 1.00 0 0.0 0.025 0.0 0.08 District Heating n/a n/a 0 0 0 - 1.25 0 0.0 0.400 0.0 0.09 District Cooling n/a n/a 0 0 0 - 1.25 0 0.0 0.400 0.0 0.0

347.3 76.3Offset Supply Start Date End Date

A RES Electricity Mains Electricity 01-01-05 31-12-05 kWh 60,000 1 61,005 1.6 2.50 152,513 4.01 0.550 33.6 0.9B RES Thermal District Heating 01-01-05 25-12-05 kWh 25,000 1 25,489 0.7 1.25 31,861 0.84 0.194 4.9 0.1C RES Fuel Natural Gas n/a n/a kWh 0 1 0 - 1.00 0 0.00 0.194 0.0 0.0

4.9 1.00

352.2 77.3

Tenancy References Statement DetailsProperty number 1234 DateTenancy number 2190 Period Start

Nett lettable area m 2 38,000 Period EndStatement No

The LES-TER concept has been developed by the British Property Federation and the Usable BuildingsTrust

with financial assistance from the Carbon Trust. © BPF & UBT 2007

2,898.6

Landlord's Energy supplied

2,937.0

Total onsite renewable collection 38.5184,374

13,383,060Total (Building) Energy Use

Total purchased energy supplies

12 months ending

198776%Tenancy as % of NLA

Contracted hours of provision ofLandlord's Services Actual hours of provision of Landlord's Services

Number of Storeys 10

n/a

n/an/a

End Date

01-Apr-2005n/a

01-Jan-2006n/a

Energy use and carbon dioxide emissions

Building location description

Is the office fully serviced (i.e. landlord pays for all energy)? >

Statement for : Tenancy Only

Date of fitoutGFA of whole buildingNLA of whole building 65,000 m2NLA for Tenancy

Date last refurbished

FULL AIR CONDITIONING providedFULL AIR CONDITIONING provided

Landlord's Services provision

Building and Services DescriptionDate of construction

Is domestic hot water included in landlord's services >YES

Full ACLandlord's Service TypeNO

YES, from independent boiler

business parkAnnual void area-time factor

Onsite renewable collection

n/an/a

Environmental PerformanceCO 2 emissions

Purchased Energy Supplies

13,198,686

Delivered Energy ConsumptionEnergy efficiencyWeighted Energy

01-Jan-200601-Apr-200431-Mar-2005100XYZABC

Your Logo Here

Figure 2 Example LES Technical Detail page 2


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NOTES ON THE LANDLORD’S ENERGY STATEMENT (LES) EXAMPLE ABOVE INTRODUCTION and GENERAL ATTRIBUTES What is the LES for? The LES format can be used to report energy use and performance for: • A WHOLE BUILDING, with total figures for the landlord’s services and building-average

performance indicators. This is the first step and also useful for statistical databases on overall building performance.

• AN INDIVIDUAL TENANCY, for reporting to each individual occupier, as in the example shown above.

The reporting format for both is identical. The only change is a statement in the header section of both pages of the LES, which confirms which of the two is being reported. The LES is for Landlord’s Services only The LES covers only the energy used for the energy services provided by the landlord to the tenant demises (in the example above, heating and partial air conditioning to Floors 1 to 6) plus the energy (or the tenant’s share of the energy) used for shared facilities in the common parts. The LES DOES NOT include information on energy (most commonly metered electricity) that is supplied to tenants for their exclusive use and paid for by tenants directly, and not through the Service Charge. Tenants who want to get the whole picture (e.g. for a Display Energy Certificate) will need to collect this information separately2.

What if the landlord provides all the energy? Where the tenant does not buy any other energy, e.g. in a Business Centre where the Landlord provides fully serviced facilities, this can be stated in the optional text within the header section of both statement pages. In such buildings, more generous benchmarks are selected against which to compare the performance of the Landlord’s Services. What’s on each page? The two pages of the LES example above include notional data for an INDIVIDUAL TENANT occupying part of an anonymous building (“Floors 1 to 6, 123 Green Square”). Page 1 is a summary which presents the energy use, emissions, performance indicators and gradings for the services provided. Where there is on-site renewable generation, its contribution to CO2 saving is also reported. Page 1 also has space to report any compensating energy and CO2 reductions, clearly attributed to the premises by suitably-accredited offsite measures. Year-on-year performance is also shown both numerically and graphically. Page 2 is the more detailed account of the data required to produce the summary page. This includes all sources and types of all energy used in the premises in a given year, together with data on the extent of landlord’s services provided including the types of service provided and the hours over which they are provided. The header sections of both pages include basic descriptions and titles, while the footer sections include dates, contact details and floor areas. The following paragraphs describe what is in the main sections of each page.

2 To make the task easier, BPF, UBT and others are advocating the concept of separate Annual Energy Statements from all energy suppliers, in particular gas and electricity utilities, providers of district heating and cooling, local electricity networks, and where necessary landlords. This already happens in some countries and is being promoted by other EU Directives.


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PAGE 1 - Summary and Benchmark Comparison Energy use, emissions, performance indicators and gradings The annual performance indicators per m2 (and per ft2) of NLA are shown for: • carbon dioxide emissions, a measure of environmental impact; • electricity, to report the electrical efficiency; • fuel (e.g. gas) and/or weighted thermal energy source (e.g. district heating), to report the

thermal efficiency; and total weighted energy • overall energy efficiency on a unified weighted scale, as outlined below. Each indicator can be compared to a benchmark value using the Benchmark Ratio and have the potential to be graded on an a to g scale. For each of the indicators above, the annual total energy use (in kWh) or CO2 emissions (in tonnes) are also presented.

The LES includes a preliminary benchmark grade (described below), which is compatible with the draft CEN standard which suggests that the median value for the energy performance of the building type concerned should be set at the boundary of the D to E grades, with the bottom of the A grade at zero. Intervals between grades can either be equal (but perhaps with subdivided grades) or variable. For simplicity there is a lot to be said for equal intervals; and these are currently shown. Discussions about benchmarking, their scales, and how statutory and voluntary benchmarking systems can be combined and reported are in progress with CLG, CIBSE and others. The next step of the ABI project will be to adopt a classification system using some of the parameters listed in the service types and tested on members’ property portfolios and against other procedures and data. THE GRADING SECTION ON THIS VERSION OF THE WORKBOOK WILL REMAIN AS AN ILLUSTRATION ONLY, UNTIL SUFFICIENT CLASSIFIED DATA FROM MEMBERS’ PROPERTY PORTFOLIOS HAS BEEN ANALYSED AND TESTED, AND THE PROCESS INTEGRATED WITH STANDARDS UNDER DEVELOPMENT BY CLG AND CIBSE. In the interim, the accompanying workbook includes a range of median benchmark values which provide an initial comparison and illustration of how the combination of service types can be used to select a benchmark. The initial benchmark values are listed below in Table 1.

Thermal (kWh/m2) Electricity (kWh/m2) EXAMPLE LES No Heating 0 10 NO Heating & Natural Ventilation Only

150 40 NO

Partial Air-Conditioning 150 70 NO Full Air-Conditioning 150 100 YES Optional Extras:Lift Energy 0 0.5 (per storey) YES – 10 storeys Fossil Fuel HWS 10 0 YES Electric HWS 0 5 NO Full Service 100 NO

Table 1 Initial Benchmark Median Values For the example tenancy LES shown in Figure 1 and Figure 2 which has full Air-conditioning, lifts to covering 10 storeys, a dedicated HWS heating boiler and is not Full Service, fuel & thermal benchmark value is 160 kWh/m2 and the Electricity benchmark value is 105 kWh/m2 for landlord’s services.


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CO2 saved by on-site renewable generation Increasingly buildings will have their own on-site renewable energy systems (RES), which will act to reduce the total amount of energy the building needs to purchase from the market. This section presents the total tonnes of CO2 effectively saved by the on-site RES, together with the percentage contribution the saving makes to the total CO2 emissions by the fuels that would be used if there were no on-site RES. Year on year performance This section includes a numerical and graphical presentation of the main performance indicators over a period of up to five years. This will both motivate and demonstrate continuous improvement. CLG is also currently intending to include year-on-year trends in its requirements for Display Energy Certificates under the EPBD. Climate and weather correction To assist fair comparisons between years, provision is made for reporting heating degree days for the building or region. This will again be coordinated with any procedures proposed for climate and weather correction by CLG and CIBSE. Cooling corrections are not currently included, but might be in future if robust standard procedures were to become available. Emissions reductions by accredited offsite measures or CO2 Offsets In addition to on-site renewables, a building owner may choose to make contractual arrangements to offset some or all of a building’s CO2 emissions through a variety means ranging from direct investment in large scale renewable generation, to procuring green electricity tariffs and possibly Carbon Credits. Whilst these cannot be attributed to the performance of the building in its own right, this section allows the data to be presented as compensating measures. Notes This area provides space for free-form notes and comments which might be useful clarification, e.g. noting alterations, problems or improvements that occurred during a year, or periods of voids which might explain abrupt changes performance.


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PAGE 2 - Technical Detail First main section - Building and Services Description This section includes the net lettable area (NLA) of the whole building (and its gross internal area if available), the NLA of the tenancy being reported in the statement, plus simple contextual information to assist classification, including dates of construction and refurbishment (and of tenant fitout where relevant), and the number of storeys (which can affect energy use, by lifts for example). The first main section also includes information on Landlord’s services types and on contracted hours of service provision. These potentially allow the benchmark values in Section 3 to be established and if necessary adjusted. The quantitative or descriptive variables that affect reporting and benchmark adjustment include: • Hours of Use. This is a table of hours of contracted service provision on weekdays,

Saturdays and Sundays – both the standard hours in the lease and the actual requested by the tenant concerned. Long hours potentially permit a more generous benchmark. However, for a benchmark adjustment for extended hours to be permitted, these hours must be both an essential requirement for the tenant’s business needs and one for which they are prepared to pay. They are NOT plant operating hours (e.g. including start-up or night cooling periods) but the hours for which the tenant requires a full service3.

• Landlord’s Services provision: This table help to identify the extent of the landlord’s services. At present it allows the HVAC systems in both common parts and in the tenanted area to be put separately into four categories: none; heating only; heating and mechanical ventilation or partial air conditioning; or full air conditioning.

o Below this box are two YES/NO questions: whether domestic hot water is included in the landlord’s services; and whether the office is fully serviced (i.e. where all energy is supplied and paid for by the landlord, whether it is then charged on or included in the rent).

o The combination of services provided is then used to label the overall servicing type (e.g. Full or Partial AC, Nat Vent etc) and assign a benchmark code which can be used to select the most appropriate benchmark for the grading on Page 1.

Further development of the classification is ongoing and comments are welcome. For example, in order to assist benchmarking, it might be appropriate to include space for quality of service provided, as assessed perhaps by an occupant survey4.

3 NOTE: sometimes out-of-hours services are billed to a tenant separately and not within the main service charge. Where this happens, the associated energy use will need to be extracted and accounted for as a direct supply, either on the LES or on a separate form. How exactly this is done will vary with the practices of individual portfolio managers and managing agents; and sometimes from building to building. Further guidance will be developed as specific cases are examined during the application of the LES to property portfolios and tenant relationships in 2007-08.


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Second main section - Energy use and carbon dioxide (CO2) emissions To the left, this section identifies the various sources of energy supplied to and/or distributed about the building5, and the amounts of each (in kWh) attributable to the building or tenant concerned. Only some of the possible varieties of fuel and energy sources, both conventional and RES (Renewable Energy Supplies) are shown here. The two groups of columns to the right show these amounts converted into: • Energy efficiency : Weighted energy (pink column). This currently ascribes factors of 1

to delivered fuels, 1.25 to delivered heat and 2.5 to electricity6 to take some account of the upstream conversion efficiency. This permits a direct comparison between buildings with different mixes of fuel types. For example, two buildings identical in every way apart from having gas and oil boilers would have the same weighted energy, although they would have different energy costs and CO2 emissions.

• Environmental Performance : CO2 emissions (yellow column). Like energy cost, in this

example this is calculated by applying standard DEFRA factors, but eventually this could be done instead by tracking the attributable CO2 through the building and dividing the total mass of CO2 by the number of kWh. CO2 is likely to be the main performance indicator in the government’s certification scheme.

The energy and CO2 emissions table generates three rows of performance data for each of the Energy Efficiency and Environmental Performance columns:

1. Total purchased energy supplies – the energy use and associated CO2 emissions from all the purchased energy sources for the premises. In nearly all cases at present all the energy consumed on the premises will come from Mains Electricity; and from Natural Gas and/or Oil, or occasionally district heating.

2. Total on-site renewable collection or generation – the renewable energy generated or (more accurately ) collected from on-site systems such as solar thermal panels, solar electric systems, wind power or even biomass grown on site. [NOTE: Imported biofuels are covered as a purchased energy supply]. Since this on-site energy generation occurs downstream of the purchased energy supplies it acts to reduce the effective amounts of purchased energy supplies; and therefore the Operational Rating of the building. However, the landlord will still be charging this energy on to tenants.

3. Total (building) energy use. Most existing premises have no on-site renewable generation, and their Total Energy Use will be identical to the Total Purchased Energy Supplies. However, where a building has on-site renewable generation, the amount of actually used inside it will be greater than the purchased energy supplies. To obtain the total energy use of the premises, one needs to add the two together. The resulting total then helps to reveal, for example, the degree to which a good overall energy performance results from good energy efficiency or to on-site renewable supplies. Ideally a building would perform well on both counts.

5 For compatibility with proposed CEN standards, these are classified as energywares (i.e. tradeable energy commodities like gas and electricity) and energy carriers (which include non-tradeable supplies such as local chilled water). 6 The exact factors to be used are currently being discussed with CLG and CIBSE.


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Section 2

Creating a Building Average Landlord’s Energy Statement

MODULAR DETAILED DEFINITIONS for the LANDLORD’S ENERGY STATEMENT (LES) This section includes a detailed description of all the major steps required to generate a LES, for the landlord’s services for a whole building. Overview The diagram below outlines how a LES is calculated for a building with common parts (in yellow) office tenants (in blue), and two shop tenants (in red): Shop 1 which connects to the common parts and uses some landlord’s services; and Shop 2, a self-contained lock-up which doesn’t. The sources of purchased (e.g. gas, electricity, oil and solid fuel) and on-site renewable (e.g. solar, wind and water power; and site-grown biomass) are shown at the top left. 1 Identify the annual consumption of all purchased energy supplies (including

biomass) by source from invoice and supply meter records. 2 Add the output of any on-site renewable generation (metered or estimated). 3 Deduct any energy that does not go to the landlord’s services. 4 This gives you the relevant totals, which can be reported as a building average

for statistical purposes. 5 Apportion to the total to each tenants who shares the landlord’s services and

prepare their individual LESs. Energy supplied, metered and billed directly to tenants (to right of the diagram) will be reported separately.

Landlord's meter(s)

SHOP 2Self-contained, sole access from street

4. Calculate energy and carbon dioxide associated with

Landlord's Servicesfor common parts and energy

services (e.g. HVAC) to tenants.5. Allocate to each tenant+ prepare Landlord's Statements

NOTESAll different forms of energy to be kept separateDIRECT SUPPLIES are not part of Landlord's Services, though they may be billed by landlords.SHOP 1 may have a Landlord's Statement for energy used in the common parts etc..SHOP 2 will not, unless the landlord provides external common energy services e.g. for corridor and outdoor lighting, loading bays etc.

2.Add renewable energy inputs from any on site supplies (e.g. solar panels)

3. Deduct all energytaken from landlord's supplies or plant not being used to provide Landlord's Services

Landlord's Plant

etc É1. Start withpurchased energy supplies

Direct energy supplies(not included in Landlord's Statement)

Energy supplied directly to each shop

SHOP 1With access from common parts.

Office TENANT 1

Office TENANT 2Energy supplied directly to each tenant for use within their premises

M

Figure 3 – The typical energy supplies servicing a multi-tenanted building


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The five steps described above enable the energy and related carbon dioxide emissions to be presented for the whole building and for individual tenancies. To compare the values against benchmarks it is also necessary to analyse a range of contextual data for the building, its services and the occupancy. The primary aim is to distinguish between high energy usage due to inefficiencies in the building, its services and their management; and legitimate high usage due the demands of intensive use (long occupancy hours or high densities] or special facilities [e.g. trading floors, data centres, restaurant facilities]. The current version of LES has been developed to allow for corrections due to alternative service types. In a later version, it is intended to allow adjustments to be made according to the additional hours of use – and these data are requested in this version of LES. The modules on the following pages provide more detailed descriptions of the parameters required to generate an LES, with cross-referencing to the fields used within the example Excel LES Workbook. List of Modules Whole Building LES A. Building Description B. Hours of use definitions C. Landlord’s Services Types and Definitions D. Purchased Energy Supplies E. On-site Renewables F. Carbon Offsets G. Calculating Performance Indicators H. Comparing with Benchmarks General I. FAQs


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A. Building Description These fields include administrative details such as who prepared the statement and how to contact different parties as well as basic building details such as floor area and the number of storeys in the building.

Section Statement and Author's Details Field References 102 to 111

Used to record who prepared the statement, which dates it covers and allows for unique statement and assessor reference numbers for future traceability. Section Landlord's Details Field References 112 to 119

Used to present the Landord’s contact address and contact details. Section Building Address and Reference Field References 120 to 124

Used to present the building’s address and a unique property identifier from the Landlord’s referencing systems. Section Tenancy Description, Reference and Contacts Address Field References 125 to 134

Used to present the tenant’s address, and a unique premises identifier. Section Building Usage and build/fit-out dates Field References 135 to 139

Dates of Construction, Refurbishment and Fit out as well as stating the principle usage of the building. These fields are all qualitative and provide contextual data. Section Whole Building Floor Areas Field References 140,141,143,144

The Gross and Net Floor areas of the whole building expressed in m2 and ft2. The pre-processing worksheets accept either metric or imperial inputs. The principle denominator is m2 Nett Lettable Area which is used for all the performance indicators. Section Tenancy Floor Areas Field References 142 and 145

The tenancy floor area in Nett Lettable Area m2 and ft2. The principle denominator is m2 Nett Lettable Area which is used for all the performance indicators Section No. of Storeys in Building Field References 146

The number of storeys in the building is used to make an allowance for lift energy within the building.


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B. Hours of use definitions The contracted and actual hours of use within the tenancy are requested for two reasons:

1. to allow a qualitative check between what is contracted and what is actually provided 2. to provide the potential for adjustments to the benchmarks in cases where genuine

extended hours of operation merit a credit. Section Contracted Hours of Usage Field References 147 to 152

The contracted hours as agreed within the service charge. We have provided facility to express this for weekdays, Saturdays and Sundays to cater for different patterns. The total contracted hours per year is then calculated assuming 52 weeks per year. Section Actual Hours of Usage Field References 153 to 158

The actual hours as provided and determined by an direct charge additional to the standard service charge (They are NOT plant operating hours (e.g. including start-up or night cooling periods) but the hours for which the tenant requires a full service7.). We have provided facility to express this for weekdays, Saturdays and Sundays to cater for different patterns. The total actual hours per year is then calculated assuming 52 weeks per year. Section Extra Hours Field References 159

The extra hours field allows for a separate entry of additional unscheduled hours which were serviced during the year and subject to direct charges. Section Void Areas and Times – leading to Void factor Field References 160

To provide the facility to adjust benchmarking for years when the tenancy was only partly occupied and included a proportion of area as void. This allows the calculation of a Void factor – which may in future be used to adjust the grading.

7 NOTE: sometimes out-of-hours services are billed to a tenant separately and not within the main service charge. Where this happens, the associated energy use will need to be extracted and accounted for as a direct supply, either on the LES or on a separate form. How exactly this is done will vary with the practices of individual portfolio managers and managing agents; and sometimes from building to building. Further guidance will be developed as specific cases are examined during the application of the LES to property portfolios and tenant relationships in 2007-08.


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C. Landlord’s Services Types and Definitions The landlord’s services provided to the tenancy can be used to select the most appropriate benchmark. The following tables list the combinations which are currently included as options. Section Common parts > Field References 161 Options Unknown

NO HEATING provided HEATING ONLY provided HEATING and MECH VENT provided FULL AIR CONDITIONING provided

Section Tenanted area > Field References 162 Options Unknown

NO HEATING provided HEATING ONLY provided HEATING and MECH VENT provided FULL AIR CONDITIONING provided

Section Is domestic hot water included in the landlord’s services > Field References 163 Options Unknown

YES, electric YES, from heating boiler YES, from independent boiler NO

Section Do Landlord's Services include Energy for Lifts? > Field References 164 Options Yes

No

Section Is the office fully serviced (i.e. landlord pays for all energy)? > Field References 165 Options Yes

No

Section Does the Landlord also supply the Tenant with Direct energy services? > Field References 166 Options The Landlord also provides separate direct energy supplies to the tenant

The Landlord DOES NOT provide separate direct energy supplies to the tenant

Section Description of Building Location > Field References 167 Options Unknown

city centre suburban business park isolated


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D. Purchased Energy Supplies Section Purchased Energy Supplies Field References 200 to 272

Delivered energy consumption – adjusted to 365 days, but NOT adjusted for degree days (in future the benchmark may be) Weighted energy consumption – calculated from the delivered energy consumption using the prescribed weighting factors. CO2 emissions – calculated from the delivered energy consumption using the prescribed CO2emissions factors. Currently we have pre-set nine different purchased energy types as listed in the table below: No. Type Description and notes

1 Mains Electricity Conventional mains supplied electricity from the national grid. Will use national weighting and emissions factors.

2Communal Electricity

Electricity purchased from a local generator such as a community CHP scheme, possibly over private wires. May use accredited local weighting and emissions factors.

3 Natural Gas Conventional Natural Gas supplied through the mains. Will use national weighting, calorific values and emissions factors

4 Oil Gas Oil supplied via delivery. Will use national weighting, calorific values and emissions factors

5 LPG LPG supplied via delivery. Will use national weighting, calorific values and emissions factors

6 Coal Coal supplied via delivery. Will use national weighting, calorific values and emissions factors

7 Biomass Biomass or Biofuel supplied via delivery. May use accredited local weighting, calorific values and emissions factors

8District Heating

Heat purchased from local supplier, such as a community CHP scheme. May use accredited local weighting, calorific values and emissions factors

9District Cooling

Heat purchased from local supplier, such as a community chilled water or tri-generation scheme. May use accredited local weighting, calorific values and emissions factors

Table 2 Purchased energy types


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E. On-site Renewable generation or collection Section Onsite renewables description Field References 300

Section Various Field References 301 to 312

The contribution towards reducing the buildings CO2 emissions made from renewable generation or collection such as solar thermal, solar electric, windpower or biomass which has been harvested on site and so does not appear as a purchased supply. The annual kWh of renewable generation from meter records or estimates should be included. The type of purchased energy supply which the renewable generation offsets should also be selected. This will determine which CO2 emissions factors are selected. In a multi-tenanted building the apportionment of this renewable contribution to specific tenants may also be made, and if so the reconciliation method should explain the method used.


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F. Carbon Offsets Section Offsite renewable generation or carbon credits Field References 400 to 405

Whilst investments in commercial offsets such as offsite wind turbines, green electricity and carbon credits can not be used as a contribution towards reducing the operational rating of the landlord’s services. This section allows these offset credits to be stated.


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G. Calculating Performance Indicators The performance indicators for display on the LES summary page are all calculated on the technical details page. There are three types of indicators:

1. Delivered energy – kWh/m2 2. Weighted energy – kWh/m2 3. CO2 emissions – kg CO2 /m2.

Normalised to 365 days usage All indicators are calculated using annual values normalised to 365 days (where meter readings or billing dates do not coincide with 365 days) using a simple linear interpolation. Weather correction Indicators are NOT corrected for weather. In future the benchmark for comparison my be adjusted. CO2 emissions and weighting factors The factors listed in the table below are used in the calculations. These will Fuel CO2 Emissions Factor Weighting Factor

kgCO2/kWh Mains Electricity 0.550 2.50Communal Electricity as certified 0.550 1.00Natural Gas 0.194 1.00Oil 0.265 1.00LPG 0.234 1.00Coal 0.291 1.00Biomass\gas 0.025 1.00District Heating as certified 0.400 1.25District Cooling as certified 0.400 1.25Anthracite 0.317 1.00Smokeless Fuel (inc. coke) 0.392 1.00Waste Heat 0.018 1.00

Table 3 CO2 emissions and weighting factors for energy supplies


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H. Comparing with Benchmarks The accompanying workbook includes a benchmark generation worksheet which provides an intial value for comparison with the actual performance. These initial values, whilst realistic, have been included to demonstrate the functionality of the LES and will be refined as more data and the various policy discussions are concluded in the coming months. The LES includes a preliminary benchmark grade (described below), which is compatible with the draft CEN standard which suggests that the median value for the energy performance of the building type concerned should be set at the boundary of the D to E grades, with the bottom of the A grade at zero. Intervals between grades can either be equal (but perhaps with subdivided grades) or variable. For simplicity there is a lot to be said for equal intervals; and these are currently shown. Discussions about benchmarking, their scales, and how statutory and voluntary benchmarking systems can be combined and reported are in progress with CLG, CIBSE and others. The benchmark values which have been used in the current example are included in the table below: Landlord's Services to Common parts Description NO HEATING

provided HEATING ONLY provided

HEATING and MECH VENT provided

FULL AIR CONDITIONING provided

Unknown

Code a b c d bElectrical 0 0 0 0Thermal 0 0 0 0Landlord's Services to Tenanted Areas Description NO HEATING

provided HEATING ONLY provided

HEATING and MECH VENT provided

FULL AIR CONDITIONING provided

Unknown

Code a b c d bElectrical 10 40 70 100Thermal 0 150 150 150DHW Included Description NO YES, from

heating boiler YES, from independent boiler

YES, electric Unknown

Code a b c d bElectrical 0 0 0 5Thermal 0 10 10 0Lift Energy Included Description Lift Energy

Included Lift Energy

Included No. of Storeys Lift Energy Lift Energy

Included Code No kWh/m2/storey Yes Unknown Electrical 0 0.5 10 5Thermal 0 0 10 0Fully Serviced & All Energy Included Description Fully Serviced &

All Energy Included

Fully Serviced & All Energy

Included

Fully Serviced & All Energy Included

Code No Yes Unknown Electrical 0 100Thermal 0 0

Table 4 Initial Benchmark Values


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General J. FAQs

Section Field References

TO BE DEVELOPED AS CASE HISTORIES..


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Section 3

Creating a Single Tenancy Landlord’s Energy Statement

MODULAR DETAILED DEFINITIONS for the LANDLORD’S ENERGY STATEMENT (LES) This section includes a detailed description of all the major steps required to generate a LES for individual tenants within a multi-tenanted property. Overview Step 1 – Create overall building average LES as described in Section 2 Step 2 – Obtain details of each tenancy (contracted services, NLA, voids etc.) Step 3 – Use a rigorous reconciliation of the whole building energy data against individual tenancies. Step 4 – Present the tenancy only LES to each tenant. TO BE DEVELOPED during 2007


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Section 4

Example LES Excel Workbook

Landlord’s Energy Statement (LES) Excel Workbook

Guidance Notes Version 2.0 – 30 April 2007 Introduction The LES is being developed as a proposed output specification or open standard for the property industry to incorporate within its existing management systems. The ABI project team has developed the accompanying spreadsheet as a means to explore its use with individual buildings. The spreadsheet is under continuous development and new versions will be issued as experience is gained, and in response to user feedback and technical and policy developments. Please address any comments you may have to:

Mark Standeven Usable Buildings Trust c/o STC Carbon Services Ltd 2 Cleveland Terrace, Bath, BA1 5DF [email protected]. 01225 429 922

Spreadsheet Structure The spreadsheet is arranged into a number of separate worksheets which provide data to the two pages of the Landlord’s Energy Statement (LES) itself. There are fourteen worksheets within the work book (from left to right as they appear as tabs in the workbook): 1. Welcome 2. LES Summary – draws data from the input data sheet and the benchmark sheet. It

presents the indicators against the benchmark grades, as well as showing up to 5 years past performance and grades and any contributions made by on-site renewable generation.

3. LES Technical Detail – draws data from the input data sheet, the conversion factor sheet to present the principle building services, hours of use and energy records

4. Building and Services – a pre-processing worksheet to enable entry of qualitative details about the building and the services provided, together with administrative data identifying the landlord, tenant and person who prepared the statement which will appear on the LES.


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5. Purchased Energy Data – a pre-processing work sheet to enable consistent entry of annual quantities of purchased energy supplies and to offer normalising to 365 days usage if the available data covers significantly more or less than this period.

6. On-site Renewables – a pre-processing worksheet to enable separate entry of annual quantities of renewably generated or collected energy from on site systems.

7. Carbon Offsets – a pre-processing worksheet to enable quantities of energy or carbon credits purchased and used towards the building’s CO2 emissions in the year concerned to be stated.

8. Past Performance – a pre-processing worksheet to record previous years’ performance to enable an analysis of trends for up to five past years.

9. Notes – a pre-processing worksheet which provides an opportunity for a set of free-form text to be printed onto the summary page of the LES.

10. Benchmarks – a pre-processing worksheet which uses the service type combination to allocate a reference benchmark for grading from a look-up table. Once established, this sheet will not be adjusted by the user, and will be replaced with periodic updates of benchmark data. In the longer term, the benchmark procedure may be centralised and possibly coordinated with developments under consideration by CLG for supporting Operational Rating procedures.

11. Input Data – the two LES page statements draw the majority of input data from this single column spreadsheet. This is intended to illustrate how, in future portfolio managers could create compatible standard data files from existing databases without the need for the pre-processing worksheets.

12. Output Data – to export summary key references and indicators to an industry database. [NOT YET DEVELOPED]

13. Conversion Factors – all dimension and CO2 conversion factors used within the LES calculations. Like the Benchmarks these values would be periodically revised and released to registered LES users.

14. Development Notes – list of major development steps. The user will therefore only need to enter values into the following worksheets from which the LES will be auto-generated : 4. Building and Services.5. Purchased Energy Data 6. On-site Renewables 7. Carbon Offsets 8. Past Performance 9. Notes

All the other worksheets are locked. More detailed guidance on each spreadsheet is listed below, in addition the EXCEL workbook contains field references to allow tracking of the use of individual fields.

1. Welcome This worksheet introduces the user to the workbook. 2. LES Summary The LES will be populated automatically from the data submitted in the input worksheets described below. It can then be printed or emailed for circulation.


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For multi-tenanted buildings8 and premises, a separate LES will need to be prepared for each tenant in addition to the overall building average. The allocation procedure will depend on the specific agreements for the building concerned (which are commercial and legal as well as technical), it has been decided that it is best to leave this to the user. However, the procedure for allocation will need to be recorded in a transparent manner, in accordance not only with the principles here but the RICS Code of Practice for service charges in commercial property. Building and Services Description Spreadsheet On this sheet please enter all details defining the building’s ownership, tenancy and managing agency. Also enter sufficient to describe the building and it’s services

Enter building data in the yellow shaded cells.

Purchased Energy Purchased Energy Supplies Collate annual energy usage for the site boundary from supply meters for designated 12 month period (from invoices or site readings). [ If such data does not yet exist – THEN ESTABLISH DATA PROCESSES URGENTLY ] Enter descriptions or data in the Yellow shaded cells in the data table, and use the drop-down menus to assign specific characteristics to each supply. For example assigning “mains electricity” to a particular supply will ensure that it is converted to CO2 using the appropriate conversion factors and that it is totalled on the Landlord statement correctly. By individual energy source:

• Electricity – record kWh from 12 months’ utility invoices, annual statement, or site readings.

• Gas – record kWh from 12 months’ utility invoices, annual statement, or site readings. • Oil – record volumes of oil delivered in litres from supplier’s invoices. Record year end

stock-levels. Subtract net increase in stock levels from delivered volumes, or add net decrease.

• LPG - record volumes of oil delivered in litres from supplier’s invoices. Record year end stock-levels. Subtract net increase in stock levels from delivered volumes, or add net decrease.

• Coal – record weight of coal delivered in tonnes from supplier’s invoices or delivery notes. Record year end stock-levels of coal. Subtract net increase in stock levels from delivered weight, or add net decrease.

• District Heating with or without CHP – record of metered thermal kWh from supplier invoices or annual statement, ideally with utility’s specific CO2 factors.

8 For single tenants on full repairing leases there may well be no need for separate landlord and tenant reporting, because all energy use is by a single organisation and with a single overall management responsibility. That said, many organisations now separate their activities into building providers (quasi-landlords) which provide and manage premises for their business units; and these may well find the LES to be a valuable reporting and benchmarking device for their internal management accounting systems.


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• District Cooling or without CHP - record of metered thermal kWh from supplier invoices or annual statement, ideally with utility’s specific CO2 factors.

• Local District Heating supplies (e.g. Campus DH Main, Campus CHP). This will need a record of the energy supplied (preferably metered but otherwise apportioned) and a calculation of the relevant amount of CO2 associated with it.

On-site Renewables This is only required where there are “active” supplies of Renewable Energy harvested on site (in particular solar, wind and hydropower and site-grown biomass) and not imported from outside9. Any imports will already have been dealt with under “Purchased Energy” above. It is important to account for renewable energy supplies fairly, and avoid hidden CO2subsidies to the building. It is also important to know this to differentiate between the energy use (gross) that the landlord will charge on to tenants and the energy use (nett) which (particularly expressed as CO2) will be the government’s headline indicator for mandatory building energy certification. On-site renewables include:

• Wind and water turbines – reducing the quantity of purchased grid electricity (kWh) • Solar electric systems - reducing the quantity of purchased grid electricity (kWh) • Solar thermal systems - reducing the quantity of purchased thermal energy (kWh) • Own grown Biomass heating systems – reducing the quantity of purchased thermal

energy (kWh) For many small. thermal systems, it will be uneconomic to meter the output, but an estimate of their contribution is desirable. If annual records of on-site renewable supplies do not exist then an estimated contribution should be made.

9 “Passive” renewable energy supplies (e.g. natural light and ventilation, and solar heat gains through windows) are not counted, and do not need to be because they reduce a building’s energy demands directly.


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Offsite and offsetting methods of mitigating the site’s impact on CO2 emissions ONLY REQUIRED FOR OFF-SITE RENEWABLE ENERGY SUPPLIES These will not be included in the building assessment (OR) but can be reported as measures to reduce the building’s impact. The most important of these is direct investment in renewable generation capacity (e.g. if a the developer constructed a dedicated wind farm somewhere else to counterbalance some or all of the energy use by the building). Even this will need careful accreditation if its electricity is supplies via the national mains10: for example, the facility could have been subsequently sold to someone else, or the electricity it generates may have been assigned to other uses. “Below the line” the LES also makes provision for reporting:

• Green Electricity Supplies (certified carbon intensity) • Carbon Offsets (purchased carbon credits)

However, currently many schemes have been criticised by analysts, the press and the government as not delivering what they purport to. So it could be wise not to use this part of the form until fully accredited schemes are available.

Past Performance TO ENABLE TRACKING OF PAST PEFORMANCE Take performance indicators directly from previous Landlord’s Energy Statements and record the statement number. Use Annual Degree Days for the nearest location to illustrate how weather conditions may have varied during the period. Include brief notes of any known changes which may have affected that year’s performance for better or worse. Rounding Conventions – to accurately regenerate the actual performance from the benchmark ratio and the typical benchmark the following conventions should be adopted: Benchmarks and benchmark ratios rounded to 4 decimal places, Performance Indicators rounded to 2 decimal places. Failure to do may introduce rounding errors. ENDS.

10 NOTE: Offsite systems using private wires to the site itself can be treated as on-site renewables.


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Section 5

LES Development Log

This section will retain a log of comments, actions and corrections which have been made to the LES-TER process.

Reference: Date Notes Action


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Section 6

Glossary & Bibliography

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