As of 01 February 2023, the updated Section 6 (2022) of the Scottish Building Standards came into force affecting EPC regulations across the country. Covering energy standards, Section 6 outlines separate regulations for domestic and non-domestic buildings. To ease this legislation shift, our ESG consulting team have listed the changes to be aware of and what this means for your real estate in Scotland.

What changes should I be aware of?

The most significant change seen to EPCs is to the carbon factor used for grid-supplied electricity. This factor assigns carbon dioxide emissions for each kWh of energy that a building uses, which has now been reduced by over 70% to reflect the increasing proportion of low-carbon electricity supplied to the UK grid.

In Scotland EPC ratings are calculated by finding the predicted carbon dioxide emissions per m2 of floor area; this number is then placed into bands ‘A-G’ to give a letter rating. As the carbon factor for electricity has been significantly reduced, and the range of the bandings has remained the same, all buildings can be expected to receive better ratings than before. This is especially true for buildings with all-electric services which will see a substantial improvement.

The table below gives an indication of the impact this has on various buildings.

 

As a result of the new regulations, many more buildings will now receive an A rating, but this does not mean owners should neglect energy efficiency improvements. We are expecting new and more stringent regulations in 2025, and efficient buildings will always be attractive to potential tenants; prioritising energy efficiency improvements will have long-term and cost-effective benefits to owners.

It’s important to note that this change does not affect Section 63 of the regulations. If a building requires an Action Plan or Display Energy Certificate before the regulation change, it will most likely still require one now. Additionally, Scottish EPCs still cannot be directly compared to those from any other jurisdiction.

Who can help?

The EPC regulation changes outlined above will make a big difference to property owners across Scotland. Whilst owners can expect an improvement to their current EPC rating, it is still important to undertake refurbishments that will further improve a buildings energy efficiency.

Our ESG consulting team can guide owners on the current efficiency of their building and make recommendations on where best to improve performance. If you would like further information about EPCs and the regulation changes in Scotland, get in touch with ESG Consultant Calum Mackenzie who can help you with your ESG goals and EPC rating.