Energy Efficient Scotland: partial business and regulatory impact assessment

2. Consultation

2.1 Within Government

The following Scottish Government and government agencies were consulted in the development of the proposals:

• Historic Environment Scotland – Discussions on how minimum standards of energy efficiency might affect traditional buildings.
• Building Standards Division – Input to modelling and technical discussions, discussions on EPCs and registers, and comparisons with non-domestic regulations.
• Legal services – Discussions and advice on legislation, scope of the legislative powers.
• Registers of Scotland – Landlord registers and access for local authorities to these.
• Civil Law and Legal System Division – Discussions on the role of tribunals.
• Better Homes Division – Discussions with the Housing Services Policy Unit on the implementation of the proposals for regulations and policy supporting the Private Housing (Tenancies) (Scotland) Act 2016.
• A range of policy areas including Social Housing, Building Standards, Energy and Climate Change Directorate, Historic Environment Scotland, the Scottish Housing Regulator and Analytical Services, helped steer development of EESSH2.

2.2 Public Consultation

In the autumn of 2016 the Scottish Government undertook a period of pre-consultation scoping work on scenarios for the whole programme. In addition to this activity, the following consultations have fed into the development of the current work:

• Scotland’s Energy Efficiency Programme ^[17]
• Scottish Energy Strategy: The Future of Energy in Scotland ^[18]
• Consultation on Local Heat & Energy Efficiency Strategies, and Regulation of District Heating ^[19]
• Energy efficiency and condition standards in private rented housing ^[20]
• Fuel Poverty Strategy Consultation ^[21]
• Second Consultation on Local Heat & Energy Efficiency Strategies, and Regulation of District and Communal Heating ^[22]
• The Energy Efficiency Standard for Social Housing ( EESSH) Consultation in 2014, in which the current EESSH review was proposed.

2.3 Business and stakeholders

Work to date has been informed by extensive engagement with stakeholders. The following have played pivotal roles throughout:

• Local Authorities
• Registered Social Landlords ( RSLs)
• Historic Environment Scotland ( HES)
• the Scottish Federation of Housing Associations ( SFHA)
• the Glasgow and West of Scotland Forum of Housing Associations ( GWSF)
• the Convention of Scottish Local Authorities ( CoSLA)
• Scotland’s Energy Efficiency Programme Partnership Forum (Energy Skills Partnership, COSLA, SOLACE, Scottish Futures Trust, Scottish Enterprise, Highlands and Islands Enterprise)
• Scottish Association of Landlords
• Scottish Land and Estates

In addition, various businesses and stakeholders responded to the consultations.

2.3.1 Long-term domestic standard

We have consulted widely on Energy Efficient Scotland programme development including:

• Pre-consultation stakeholder workshops which considered the framework of standards and regulation needed to deliver out objectives. This was attended by a number of stakeholders representing a variety of interests including landlords, the energy efficiency industry, consumer interest groups, etc.
• The Scotland’s Energy Efficiency Programme consultation (2017), which supported development of the Scottish Government Energy Strategy included further stakeholder workshops which sought further views on the framework of standards and objectives. This received over 100 responses and has informed the development of the proposed long-term domestic standard.

2.3.2 EESSH2

When EESSH was introduced in 2014, the Scottish Government committed to undertaking a review with social landlords in 2017 to assess progress towards the 2020 target and to consider future milestones beyond 2020. In March 2017, the EESSH Review Group was established. The group is chaired by the Scottish Government, and comprises some members of the first EESSH stakeholder working group as well as additional members. Representatives of the social landlord sector are drawn both from individual social landlords (local authorities and Registered Social Landlords) as well as social landlord representative bodies, such as the Convention of Scottish Local Authorities ( CoSLA), the Scottish Federation of Housing Associations ( SFHA), and the Glasgow and West of Scotland Forum of Housing Associations ( GWSF). Other stakeholders represented on the group are Historic Environment Scotland, the Energy Saving Trust and the Scottish Housing Regulator. The group has met on six occasions and will meet for the final time following the conclusion of the EESSH2 consultation.

The Review was conducted in two phases. Phase 1 assessed progress towards the 2020 target and completed its role in October 2017 with the production of the updated Scottish Government EESSH Guidance for Social Landlords. Phase 2 considered milestones and activity post-2020 and informed proposals contained in the EESSH2 consultation. Following conclusion of the EESSH2 consultation and confirmation of its outcomes, the EESSH Review will be completed and finalised.

2.3.3 LHEES and District Heating

Work to date around LHEES and the Regulation of District Heating has been informed by extensive engagement with stakeholders. A particularly pivotal role in the development of the proposals was played by:

• The Special Working Group of the Scottish Government’s Expert Commission on District Heating (‘the Expert Commission’s SWG’), who in June 2016, made recommendations on the role that regulation could play in supporting the Scottish Government’s vision and ambition for district heating in Scotland. While the Expert Commission’s SWG’s members contributed their expertise and knowledge as individuals, and their views should not be taken as necessarily representing the views of their employers, the group involved executive members of stakeholder organisations such as the Energy Saving Trust in Scotland; WWF; local authorities; Citizens Advice Bureau; Association for Decentralised Energy; Scottish Power; Ignis Biomas; and University of Edinburgh among others.
• The Short Life Working Group on Heat Regulation (‘the Working Group’) was established by the Minister for Business, Innovation & Energy in September 2016 and advised on potential regulatory scenarios for district heating and for the introduction of LHEES under Scotland’s Energy Efficiency Programme, now Energy Efficient Scotland. This group, comprised of stakeholders representing a variety of interests from local authorities to industry and business to consumer groups, informed, across a series of workshops, the initial high level policy scoping consultation published in January 2018. The Scottish Government then commissioned an independent analysis of the responses and, using that analysis of the views and evidence provided by stakeholders, the Working Group further supported and encouraged the Scottish Government to develop policy proposals using the full extent of its powers. These proposals were set out in the ‘Second Consultation on Local Heat & Energy Efficiency Strategies, and Regulation of District and Communal Heating’ which included specific impact-focused questions.
• A programme of full-day workshop events around the country during both the first and second LHEES & regulation of district heating consultations, all of which featured presentations on the detailed proposals from Scottish Government officials; presentations on the proposals and potential impact from experts representing key stakeholders (with consumer and industry perspective provided by among others, the Association for Decentralised Energy; the Heat Trust; Aberdeen Heat and Power; Citizens Advice Scotland; and various Local Authorities); and focussed group discussion from which the views gathered were collated to further augment the independent analysis of consultation responses.

2.4 Future Consultation

Work ongoing will involve further consultation. A 12-week period of public consultations, launching on 2nd May 2018, will involve a series of stakeholder consultation events and bilaterals with stakeholders where required.

The consultation will further inform the development of the Energy Efficient Scotland and routemap through asking for views on:

• The long-term domestic standard
• The phasing in of the standard across the different domestic sectors to mirror the different starting levels of energy efficiency
• Higher targets for fuel poor households
• The role of the EPC Assessment in identifying what technically feasible and cost effective measures will be needed to bring a home up to the desired energy efficiency level
• The potential legislative provision to support Energy Efficient Scotland

The consultation will be presented and discussed through a programme of Ministerial and stakeholder events, bilateral meetings with active lobbying and consumer groups as well as existing industry meetings and conferences so as to answer questions and encourage as wider a participation as is possible for consultation responses.

The key messages will also be disseminated through articles in sector publications such as the Housing Scotland Digital Magazine.

Regarding EESSH2, the “Consultation on the Energy Efficiency Standard for Social Housing post-2020 ( EESSH2)” invites all interested parties to consider the proposals within the Consultation document and welcomes engagement across the social rented sector and beyond. Formal responses will be analysed and used as part of the decision-making process. Responders’ thoughts and opinions will be taken into account as longer-term energy efficiency rating targets are set for the social rented sector.

To enable wide discussion and consideration of the proposals contained within the EESSH2 consultation, a number of events will be arranged to give stakeholders the opportunity to discuss the detail with their counterparts and with Scottish Government officials.