Industry Insight

Guide to EICR Observation Codes: C1, C2 and C3 - COEL

17 January 2026

Guide to EICR Observation Codes: C1, C2 and C3

Electrical Installation Condition Reports play a central role in demonstrating electrical safety across commercial buildings. For landlords, managing agents, and property professionals, understanding the observation codes in an EICR is essential to meeting electrical obligations and maintaining safe environments.

EICR observation codes are designed to provide clarity. They identify the severity of electrical issues, indicate the level of risk present and help determine the actions required to remain compliant. This explains the meaning of C1, C2, and C3 observations in clear, practical terms, supporting informed decision-making and confident property management.

EICR Observation Codes In Commercial Property

Observation codes form the backbone of an EICR in commercial property. They allow electrical professionals to assess installations consistently and communicate findings clearly to those responsible for the building.

In commercial settings, these codes help landlords understand:

  • Whether immediate action is required
  • Which issues present potential safety risks
  • Where improvements can enhance long term safety and resilience

Each observation code is linked directly to the condition of the fixed electrical installation and its ability to operate safely under regular use.

C1 Observations

A C1 observation indicates immediate danger. These findings highlight electrical conditions that present a serious risk of injury or fire if left unaddressed.

In commercial buildings, C1 observations may include exposed live conductors, unsafe temporary wiring or damaged equipment that could be accessed during everyday use. Because the risk is immediate, action is expected without delay.

Where a C1 issue is identified, electricians may take steps to make the installation safe at the time of inspection, such as isolating affected circuits. Permanent remedial work should then be carried out as soon as possible.

C2 Observations

C2 observations identify potentially dangerous conditions. While they may not present an immediate threat, they could become hazardous if circumstances change or faults develop.

Examples in commercial environments include inadequate earthing, deteriorated insulation or protective devices that no longer meet current standards. These issues require timely attention to prevent escalation and reduce risk.

Addressing C2 observations promptly supports compliance and demonstrates a proactive approach to electrical safety.

C3 Observations

A C3 observation indicates that improvement is recommended. These findings highlight areas where the installation does not fully align with current best practice, but does not present a direct safety risk.

Common C3 observations in commercial properties include older installations that remain serviceable but could benefit from modernisation. While remedial work is not legally required to achieve a satisfactory report, addressing C3 items can improve reliability and future-proof the system.

Many landlords choose to resolve C3 observations as part of planned upgrades or refurbishment programmes.

Further Investigation Observations

In some cases, an EICR may include recommendations for further investigation. These arise when parts of the installation cannot be fully assessed during the inspection.

Further investigation resolves uncertainty without making assumptions about safety. Completing these investigations supports accurate reporting and ensures that no hidden risks remain within the electrical system.

Satisfactory and Unsatisfactory EICR Outcomes

The combination of observation codes determines whether an EICR is classed as satisfactory or unsatisfactory.

Reports containing C1 or C2 observations are recorded as unsatisfactory and require action to restore compliance. Reports with only C3 observations are generally classed as satisfactory, as no immediate or potential danger has been identified.

Understanding this distinction helps landlords prioritise remedial works and manage compliance timelines effectively.

Legal and Insurance Considerations

EICR observation codes are closely linked to electrical obligations under health and safety legislation. Landlords are expected to act on findings that indicate risk and retain evidence of completed works.

Insurers increasingly review EICRs following claims or policy renewals. Clear records showing how C1 and C2 observations have been addressed can support claims handling and demonstrate responsible commercial building management.

Failure to respond appropriately to identified risks can have legal and financial consequences.

Managing Remedial Works

Effective management of remedial works involves prioritising safety, coordinating access and minimising disruption to occupiers.

Considerations include:

  • Addressing urgent risks first
  • Communicating clearly with tenants
  • Ensuring all works are certified
  • Retaining updated documentation

A structured approach helps maintain compliance while supporting positive landlord tenant relationships.

Observation Codes and Ongoing Electrical Maintenance

EICR findings provide valuable insight into the condition of electrical systems over time. When reviewed alongside previous reports, observation codes can highlight recurring issues or emerging risks.

Using this information to inform planned maintenance helps reduce unexpected failures, control costs, and maintain safer buildings. Over time, this approach supports a more resilient electrical infrastructure and improved asset performance.

Supporting Safer Commercial Environments

A clear understanding of EICR observation codes contributes to safer workplaces. When landlords act promptly and transparently on inspection findings, tenants benefit from reliable systems and reduced disruption.

Electrical safety forms part of the overall quality and professionalism of a commercial property. Consistent standards support tenant confidence and long term occupancy.

EICR Support and Electrical Compliance With COEL

COEL supports commercial landlords with clear guidance and professional expertise across electrical safety and compliance. From interpreting EICR observation codes to delivering Commercial EICR Testing and remedial works, our approach is designed to remove uncertainty and support informed decision-making.

By working with a partner that understands commercial environments, landlords can manage electrical obligations, maintain safer buildings and plan effectively for the future.

 

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