A new EPC Regime is coming to Scotland: Are you ready?

On 24 August the Scottish Government announced that, following some delays, the new Energy Performance Certification (EPC) regime now has a proposed start date: 30 April 2028. This will replace the existing Energy Performance of Buildings (Scotland) Regulations 2008.

Some of the details are still unknown, and others may change. Based on our current knowledge, here is a summary of the key changes, and the main things that will stay the same. It applies only in Scotland.

Key things staying the same	Key changes
It will still be necessary to get an EPC when a new building is constructed, and when you are selling a property or letting it to a new tenant.	An entirely new EPC register and accreditation scheme will be established. EPCs will be valid for five years rather than ten.
Non-domestic buildings with a total useful floor area over 500 square metres that are frequently visited by the public must display their EPC, as must those over 250 square metres that are occupied by public authorities and frequently visited by the public.	There will be a new rating system for both domestic and non-domestic buildings. The methodology will assume a Scottish average climate instead of the UK average that was previously used.
Local authorities will continue to be the enforcement agencies, and for now fines will remain at the current levels (£500 for domestic properties, £1,000 for non-domestic properties).	For domestic properties, EPCs will include a Heat Retention rating to help owners and occupiers understand how well insulated the property is, and how much energy is required to heat it. This will be based on categories of emissions from particular types of heating systems. It will continue to use the familiar colour-coded A to G rating. Also, the current Energy Efficiency rating will be renamed the ‘Energy Cost’ rating. This will tell consumers how much it costs to power the house each year (heating, lighting, hot water etc), again based on an A to G rating.
	There will be three ratings for non-domestic EPCs: Energy Performance rating (previously the Energy Efficiency rating) Energy Use rating (based on the building’s modelled regulated energy use under standard conditions) Direct Emissions rating (looking at the building’s emissions with a focus on decarbonisation) Also, a new Property Report will replace the existing Recommendations Report. It will set out potential improvement measures that could improve energy efficiency and lower energy costs.

Transitional period

Any EPC that is issued on or after 30 April 2028 will be in the new format. But not all properties will be immediately required to replace their EPC, as in many cases a transitional period will apply. This has several elements.

There will be a one-year transitional period for sales and lettings. If the property already has a 2008 Regulations EPC that would have been valid in the period between 30 April 2028 and 30 April 2029, then that existing EPC can still be used instead of having to obtain a new one. (After 30 April 2029, only new EPCs may be provided on a sale or new letting.)

The ‘old’ EPC can only be used once in that one-year period. If the property is sold or let again within the transitional period, this will trigger the requirement to obtain a new EPC. However, this is not the case for short term lets of residential properties. They may use an existing EPC on new lettings throughout the transitional period, provided it is valid and has not expired.

Non-domestic buildings with a total useful floor area over 500 square metres that are frequently visited by the public will be allowed to continue to display an ‘old’ EPC until it expires or until 30 April 2033 (whichever date comes first). The same applies to non-domestic buildings over 250 square metres that are occupied by public authorities and frequently visited by the public.

In all other cases where these transitional rules do not apply, EPCs will cease to be valid on 30 April 2028.