Energy Performance - Action Plan Requirement for Non-Residential Building

From 1^st September 2016 and using the powers set out in the Climate Change (Scotland) Act 2009, the Scottish Government has now started to enforce the improvement of energy efficiency in non-residential buildings.

The Assessment of Energy Performance of Non-domestic Buildings (Scotland) Regulations 2016 introduced the requirement for an “action plan” for any non-domestic building over 1000 square metres which is to be sold or leased and which does not comply with building regulations from 2002 or later.

The owner of any building affected by the Regulations who now plans to sell or lease same must get a “Section 63 Assessor” – a specially qualified professional – to prepare an action plan.

The action plan will include prescribed improvement measures set out in the 2016 Regulations and may include alternative measures suggested by the assessor.

The prescribed measures are:-

• Installing draught-stripping to doors and windows
• Upgrading lighting controls
• Upgrading heating controls
• Installing an insulation jacket to a hot water tank
• Upgrading low energy lighting
• Installation of insulation in an accessible roof space and
• Replacement of a boiler

These measures will be recommended if it is estimated that the cost of the works would be paid back within 7 years or (in the case of a boiler replacement) if the boiler is more than 15 years old.

The action plan will be publicly available at https://www.scottishepcregister.org.uk

Once the action plan is prepared, the owner has a choice:-

• Either they can carry out the identified measures within 42 months or
• They can defer carrying out the improvements by annually recording energy consumption and emissions in the building and publishing a “Display Energy Certificate” which certificate will be publicly available via the website (Failure to comply with same could lead to a fine of up to £1000 with compliance being enforced by local authorities.)

The action plan must be made available to any prospective purchaser or tenant and supplied if the sale or lease proceeds.

For any building that falls within the Regulations and was being marketed before 1^st September 2016 and the marketing has continued, no action plan will be required. However, if a property which had been marketed pre 1 September 2017 was taken off the market and is now re-marketed, then an action plan would now be needed.

The Display Energy Certificate therefore will form a key part of due diligence when properties falling within the Regulations are being sold or leased and consideration given to what warranties should be sought from a seller regarding their compliance with the energy efficiency regulations and legislation.

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