Energy Performance Certificate reform: consultation analysis

Introduction

Background

Following the 2021 Heat in Buildings Strategy, which outlined the Scottish Government’s plan to reach net zero and address the wider challenges of reducing emissions from buildings, the Scottish Government consulted on proposals for a Heat in Buildings Bill, and is currently considering its response to that consultation. The proposals consulted upon included powers to introduce regulations requiring domestic buildings to meet a minimum fabric energy efficiency standard and to prohibit the use of direct emissions heating systems in domestic and non-domestic buildings by 2045.

Energy Performance Certificates (EPCs) are a long-established element of the domestic and non-domestic property markets. They provide information about the energy efficiency of a building which allows for comparisons to be made between buildings under standard operating conditions. They also suggest any measures which could be taken by an owner to improve the energy efficiency of their building. The Scottish EPC register website can be used to find the EPC for a building if a valid EPC exists.

EPCs must be provided when a building is sold or let to a new tenant. They have also formed part of the Home Report since 2008. However, there are currently a number of criticisms about EPCs and it is widely accepted that EPCs need reform.

In 2021, an initial consultation on EPC reform took place. This focused on the introduction of a specific EPC rating – Energy Use – onto domestic EPCs and to rename the existing ratings. Following feedback from this consultation, and further policy development, it was considered that a set of ratings^[2] will be needed to maximise the value of EPCs. This includes a fabric-focused rating which would be more appropriate to support policies intended to drive fabric improvement.

In July 2023, the Scottish Government launched a consultation on EPC reform, which ended in October 2023. This sought views on wider reforms in domestic and non-domestic EPCs to ensure they are fit for purpose to support proposed future Heat in Buildings regulations. A total of 323 responses were received to this consultation.

Following this consultation, the Scottish Government intends to introduce revised Energy Performance of Buildings (Scotland) Regulations to the Scottish Parliament. This will be subject to the necessary legislative vehicle being in place. This would allow for revised EPCs to come into use shortly after regulations are introduced. However, the Scottish Government will also review the UK Government’s timeline for development of the Home Energy Model (HEM). This may be a more appropriate time to introduce the reformed EPC.

Key elements proposed for the reformed EPCs are to:

• Introduce a set of domestic EPC ratings to provide a holistic reflection of a building’s performance.
• Introduce a set of non-domestic EPC ratings to provide appropriate information about non-domestic buildings.
• Make additional changes to the EPC system. This would mean EPCs provide clear and useful basic information about a building’s energy efficiency for current and prospective building owners and tenants, and other stakeholders. It would also reform the operational system for EPC assessors and the Approved Organisations who accredit them.

Respondent Profile

In total, after removing any blank and duplicate responses, there were 323 responses to the consultation. Of these, 122 were from organisations and 201 from individuals. A breakdown of organisation sub-groups is provided in the following chart. The highest number of organisation responses were submitted by representative bodies (31). This was followed by organisations within the construction sector (30), local authorities (19) and housing providers (10). A full breakdown of all organisation sub-groups responding to each question is provided in Appendix 1.

A list of all those organisations that submitted a response to the consultation is included in Appendix 2.

Methodology

Responses to the consultation were submitted using the Scottish Government consultation platform Citizen Space, by email or by post. Most respondents submitted their views via Citizen Space. Where responses were submitted in email or hard copy, these were entered manually onto the Citizen Space system to create a complete database of responses.

The Scottish Government also held a series of three workshops among a broad audience, but mostly among those working in areas around assessment. They also held seven one-to-one discussions looking at the impact on businesses. Reports from these workshops and discussions were provided to the researchers to include in their analysis. By and large, these attendees covered the same issues as those raised in responses to the consultation. Where new or different issues were raised, these have been included in the reporting where relevant.

The number responding at each question is not always the same as the number presented in the respondent group table. This is because not all respondents addressed all questions. This report indicates the number of respondents who commented at each question.

The researchers examined all comments made by respondents and noted the range of issues mentioned in responses. This included reasons for opinions, specific examples or explanations, alternative suggestions or other comments. Grouping these issues together into similar themes allowed the researchers to identify whether any particular theme was specific to any particular respondent group or groups.

When referring to respondents who made particular comments, the terms ‘a small minority, ‘a significant minority and so on have been used. While the analysis was qualitative in nature, as a very general rule of thumb it can be assumed that:

• ‘a small minority’ refers to less than 10% of the respondents
• ‘a significant minority’ indicates between around 10%-24% of respondents
• ‘a large minority’ indicates more than a quarter of respondents but less than half
• ‘a majority’ refers to more than half the respondents but less than three quarters
• ‘a large majority’ refers to three quarters or more of respondents, who commented at any question

In considering group differences, it must be recognised that where a specific opinion has been identified in relation to a particular group or groups, this does not indicate that other groups did not share this opinion. It means they simply did not comment on that particular point.

Analysis of Responses

The analysis of responses is presented in the following chapters which follow the order of the questions raised in the consultation paper. The consultation gave all who wished to comment an opportunity to do so. However, given the self-selecting nature of this type of exercise, any figures quoted here cannot be extrapolated to a wider population outwith the respondent sample.

The Citizen Space database was exported into Excel for detailed analysis. Where respondents requested anonymity and / or confidentiality, their views have been taken into account in the analysis, but direct quotations have not been used. Quotations have been included where they illustrate a point of view clearly and have been selected across the range of respondent sub-groups.

Some respondents provided commentary on a specific question in their response to another question. Where this has occurred, responses have been moved to the relevant question to avoid duplication.

One organisation conducted a survey among its membership and the results of this contributed to their submission.