Energy Efficient Scotland: partial business and regulatory impact assessment
This Business and Regulatory Impact Assessment (BRIA) accompanies the consultation on Energy Efficient Scotland.
10. Summary and recommendation
10.1 Long-term domestic standard
Modelling shows that three-quarters of the private sector stock can achieve an EPC of at least C at a total cost of £4.7bn. Higher attainment rates can be achieved by spending more, but we propose that properties would only need to be brought up to the standard where it is technically feasible and cost-effective. We will develop our proposals on cost-effectiveness in the light of feedback from this consultation, and we will then able to revise the costs, benefits and attainment rates given the final form of any exception to regulations based on cost effectiveness.
Table 10. Costs and benefits of raising dwellings to an EPC C in the private sector
| Total cost | £4.7bn |
|---|---|
| Average (median) upgrade cost | £3,500 |
| Average (median) annual fuel bill saving | £350 |
10.2 EESSH2
We propose that a higher standard be set for the social sector, in particular that social landlords are required to maximise attainment of an EPC B by 2032. This is estimated to have the following costs and benefits:
Table 11. Costs and benefits of meeting EESSH2 in the social sector
| Total upgrade cost | £3.4 - £3.7 billion |
|---|---|
| Average (median) upgrade cost | £5,400 |
| Total annual fuel bill savings | £110 million |
| Average (median) annual fuel bill saving | £160 |
| Total annual energy savings | 1.3 TWh |
| Total annual carbon abatement - including electricity | 0.4 MtCO2e |
| Total annual carbon abatement - excluding electricity | 0.2 MtCO2e |
10.3 LHEES and District Heating
Proposals for these are still being developed, and the current consultation does not put forward specific proposals for regulation. Costs and benefits will be assessed as and when the specific form of any proposed regulations is finalised.
10.4 Climate change benefits of Energy Efficient Scotland
The various programmes which fall under Energy Efficient Scotland will make a key contribution to the built environment targets set over the period of the Climate Change Plan (2018 – 2032). In the domestic sector, they will deliver the reduction in heat demand of 15% by 2032, which will in turn contribute to reducing emissions from the domestic sector by 23% over the same period.
With respect to the non-domestic sector, as there are no regulatory proposals set out in this consultation, it is not within the scope of this BRIA. As regulatory proposals for this sector are developed, a separate BRIA will be prepared and issued.
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