§ Mr. Matthew TaylorTo ask the Secretary of State for the Environment, Transport and the Regions what assessment he has made of the advantages and disadvantages regarding energy efficiency in the rented commercial office sector where(a) tenants are given an incentive to save energy by a separate energy cost based on actual energy consumption, alongside charges for floor space rental and (b) landlords are given an incentive to save energy through building refurbishment, by charging a fixed rental price from the owners of the building being occupied, regardless of energy use by the tenant. [142256]
§ Mr. MeacherMy Department has made no detailed assessment of the relative advantages and disadvantages arising from the two scenarios identified.
However, my Department's Property Advisory Group drew attention to various barriers to greater energy efficiency in commercial buildings in its 1998 report, "Sustainable Development and Buildings". The report identified that in some leasing arrangements, where the tenant reimburses the landlord's energy costs, neither party has an incentive to achieve greater energy efficiency. The Group commended all-inclusive occupation agreements as a means of giving the landlord and tenant a mutual incentive to reduce energy consumption. The Group explored this further and concluded that while there was considerable and growing interest in all-inclusive leases in 168W the commercial property sector, wider adoption would primarily be a matter for market evolution. I intend to give further consideration to this.
The forthcoming Climate Change Levy will provide a major incentive for greater energy efficiency in the non-domestic sector. The Government do and will continue to provide information to encourage business to become more energy efficient, through its Energy Efficiency Best Practice programme. The programme promotes strategies to motivate the different players in the rented commercial property sector through a suite of publications setting out best practice in design, construction, occupation and energy services. Good Practice Guide 258, "Looking for a new Investment Angle?" targets developers, landlords and financiers, with Good Practice Guides 285, "What will energy efficiency do for your business?", and 288, "Is poor energy efficiency in your office hitting your bottom line?" targeting tenants and occupiers. Each document spells out to the relevant audience the environmental, financial and other business benefits to be gained from investing in major energy efficiency improvements and in practising good energy management. The guide for tenants encourages businesses not only to exercise proper management over areas where they have direct control, but also to explain to current and potential landlords that they expect to be provided with environmentally smart buildings.