What is referred to as Low EPC Risk?

Low EPC Risk refers to the risk associated with the energy performance of a building or asset, specifically the potential for devaluation due to poor energy efficiency. When buildings have low energy performance, they can lead to higher operational costs, less market interest, and a decrease in their overall value. This scenario emerges from a growing awareness of sustainability and energy efficiency, where properties that do not meet certain environmental standards may face decreased demand and lower sale prices or rental rates.

In contrast, the other options pertain to different types of risks that impact business or property values but do not focus specifically on energy performance or energy certification (EPC). Regulatory fines relate to non-compliance with laws, market competition involves market dynamics affecting pricing and sales, and natural disasters address environmental risks rather than energy efficiency. Therefore, the correct answer zeroes in on the particular influence of subpar energy performance on asset valuation.