From 2033, Brussels plans to impose particularly heavy fines on the least energy-efficient homes. While the future of the current system of renovation grants may be in doubt, there is little doubt about the obligation to invest in energy efficiency.
Today, any owner wishing to sell or rent their property needs a PEB certificate, which indicates the property's energy classification (from A for very efficient homes to G for the least efficient ones).
However, within 5 years of the implementation of the Order of 7 March 2024 - a date that is still uncertain and will depend on the next regional government currently being formed - owners will have to automatically have such a certificate, even if there are no plans to sell or let the property. These ratings will be automatically forwarded to the authorities, who will then have an overview of the state of the building stock in Brussels. And do what with it?
While upgrading work has been generously supported by a wide range of fairly advantageous grants (see our article on the RENOLUTION grants), particularly heavy fines (the proceeds of which will be paid into the Energy Fund that finances these grants) are planned to apply from 2033.
Caution!
On 15 August 2024, the RENOLUTION grants were suspended by the Brussels government in current affairs, for lack of a sufficient budget. In view of the outcry caused by this decision, it was finally decided to maintain the eligibility of grants for all work for which the final invoice is paid before 31 December 2024.
What happens next? Will an equivalent system be introduced? It will be up to the next Brussels government to decide.
Mitigating circumstances
It should be noted, however, that these fines will be in full discharge of liabilities (i.e. they will be one-off fines and not due each year) and will be at the discretion of the authorities if the owner is able to show that there are mitigating circumstances.
For example:
- Ongoing litigation preventing the owner from carrying out renovations
- Banks refusing to finance the work
- If the condominium refuses the work proposed by the owner: in this case, the owner's fine may be limited or even cancelled, but the condominium may be prosecuted.
- And so on.
Two deadlines, one of which is certain: 2033
To understand how these fines are calculated, you need to know the precise energy consumption of your property, expressed in kWh/m2/year.
The labels from A to G on the PEB certificate are simply ranges of consumption divided into categories (see table above). And the same score could give rise to different fines depending on the precise difference in consumption.
The legislator has also ensured that, from now on, the exact consumption will be indicated on all PEB certificates.
Then there are two deadlines: 2033, which is certain, and 10 years after the implementation orders of the ordinance, which could take us to 2045 (e).
Lastly, it is stipulated that the fines resulting from these two deadlines will not be cumulative if they are imposed for the same offence.
Tens of thousands of euros in fines
The actual fine is calculated on the basis of a rate of 2.50 euros per difference of 1 kWh/m2/year (total to multiply by the surface area of the accommodation) on the Primary Energy Consumption (CEP) and, in order not to penalise the same excess energy twice, the fine may not exceed 125 kWh/m2/year.
Are you lost? So are we! Here are some examples to understand those future fines.
- An 85sqm flat has a performance of 276 kWh/m2/year (F score)
If nothing is done to improve its performance, the owner is liable to a fine of:
• 212.50 euros in 2033 (difference of 1 kWh/m2/year (276 - 275) X 2.5 X 85 m2)
• 26.562.50 euros in 2045 (e) (275 - 150) X 2.5 X 85 m2)
• For a total of 26.775 euros ( *instead of 26.987,50 euros without the capping mechanism)
- An 85sqm flat has a performance of 500 kWh/m2/year (G score)
The owner is liable to a fine of :
• 26.562,50 euros in 2033 (the maximum differential of 125 kWh/m2/year applies)
• 26.562,50 euros in 2045 (e)
• For a total of 53.125 euros (*instead of 122.187.s50 euros without capping mechanism)
- A 210sqm townhouse is liable to a total fine of between:
• 525 euros (differential of 1 kWh/m2/year) and
• 65.625 euros (maximum differential of 125 kWh/m2/year)
- A 300sqm villa is liable to a total fine of between:
• 750 euros (differential of 1 kWh/m2/year) and
• 93.750 euros (maximum differential of 125 kWh/m2/year)
A Flemish PEB is not (yet) a Walloon PEB, nor a Brussels PEB!
The PEB certificate has been highly criticised in recent years, because its results could, for the same actual performance, depend... on the certifier and the Region in which the property is located!
It seems obvious that a harmonisation of the criteria used by certifiers and adopted by the three Regions needs to take place. Another dossier on the negotiating table for the new regional governments.