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The biggest consumption of energy in the home is spent on heating the property itself, and on heating water for washing and laundry purposes. Some homes generate heat more efficiently, for example using a condensing boiler for both (central) heating and water; other less so, perhaps using electric radiant fires for heating and an immersion heater for the water. Likewise, some houses are better insulated than others, and by conserving heat need to generate less, as less is being simply wasted.

The more efficient a house is, the less energy it should consume; and hence should enjoy lower fuel bills and, importantly, be responsible for lower CO2 greenhouse gas emissions. With the possibility of tax or other governmental measures to encourage efficient use of fuel, the link between good efficiency and lower cost is set to become ever stronger.

An Energy Performance Certificate is based on data collected from an individual inspection of the property. It identifies the surface area of the external walls and the materials used for them and for the roof; the types and surface areas of windows; and notes any specific insulating works undertaken such as loft or cavity wall insulation. Using a comprehensive database of the insulating properties of all the different materials used in the construction, coupled with information about the means used to heat the property, and overall energy efficiency rating is then calculated.

The Certificate gives a relative appraisal of the property overall (in a similar way as new electrical appliances are rated) and, where appropriate, identifies areas where improvements could be made, giving indicative capital costs, ongoing fuel savings, and likely financial “payback” time.