1. ABERDEEN EDINBURGH GLASGOW BRUSSELS www.brodies.com Energy Efficiency Regulations Catherine Reilly, Director, Brodies

2. Section 63 Climate Change (Scotland) Act 2009 The Assessment of Energy Performance of Non- domestic Buildings (Scotland) Regulations 2016 Effective 1 st September 2016 On sale or lease to a new tenant Not on lease renewal

3. Section 63 Regulations + 1,000 m2 non-domestic properties affected Exclusions Green Deal buildings Low energy use buildings Temporary buildings Short term lets Buildings compliant with 2002 Building Regulations

4. No minimum EPC standard for lettings Different from England’s minimum energy efficiency standards placing restrictions on lettings Leasing of properties with low ratings still permitted

5. What will be different? An EPC will still be required An Action Plan will also be required Action Plan – emissions and energy improvement targets + prescribed works which can help meet targets Owner may choose whether to: –carry out Action Plan works; or –defer the works and adopt operational ratings regime

6. Action Plan works (a) installing draught stripping to doors and windows; (b) upgrading lighting controls; (c) upgrading heating controls; (d) installing an insulation jacket to a hot water tank; (e) upgrading low energy lighting; (f) installation of insulation in an accessible roof space; (g) replacement of a boiler (if more than 15 years old). 42 months to complete and then new EPC Energy savings over 7 years must cover initial cost of works

7. Operational ratings – Display Energy Certificate Annual Display Energy Certificate Advisory report will recommend works to improve energy performance and reduce emissions All key documents produced will be lodged in central electronic register – accessible with the property details and reference number for the relevant document

8. Penalties for non-compliance Policed by local authorities Penalty charge notices for failure to provide Action Plan or complete works on time - £1,000 Failure to obtain annual DEC – may lose right to defer the carrying out of works

9. Landlords and tenants Who pays for the works or the monitoring? Negotiation of new lease Access rights to do works and to gather information or carry out assessments

10. ABERDEEN EDINBURGH GLASGOW BRUSSELS www.brodies.com Energy Efficiency Regulations Catherine Reilly, Director, Brodies