Energy Performance of Buildings (Scotland) Regulations 2025: business and regulatory impact assessment

Section 5: Next Steps & Implementation

Recommendations & Preferred Options

The Scottish Government’s preferred option is to proceed with Option 2. This option will include changes to the EPC rating system, improvements to the design of certificates, and enhancements to the technical and operational infrastructure, shared across the UK. These changes will bring benefits to users of the EPC system through ensuring better quality, improved accessibility, more accurate and more reliable EPCs.

It should be noted that benefits to consumers could not be monetised.

Summary costs and benefits table

Implementation Considerations & Plans

As set out in the updated Government Response which accompanies the new regulations and this BRIA, the Scottish Government will implement our preferred option through:

• laying new EPC Regulations in the Scottish Parliament in October 2025, using our powers under s.250 of the Energy Act 2023;
• ensuring that there are 12 months between the regulations being laid and them coming into force, therefore ensuring sufficient time for the market to prepare for the changes to come into effect;
• ensuring that there are appropriate transitional provisions within the regulations to address parts of the property market which could be negatively impacted when the new regulations come into force;
• engaging further with stakeholders who are directly affected by the regulations: in the Approved Organisations, assessor businesses, estate and lettings agents, conveyancing solicitors, local authorities, landlords, mortgage lenders;
• communicating the changes to the wider public to explain the new rating system and the redesign of the certificate;
• working with government funding programmes and regulatory regimes which rely upon EPCs, to ensure they can take into account changes to the rating system within the operation of their schemes;
• working with the Approved Organisations and EPC assessor community to ensure that all assessors receive training on the new regulations and changes to the certificates and rating systems;
• working with the Approved Organisations, UK Government and EPC assessor community to ensure that assessors receive training on, and testing of, the new calculation software which be used to record and process data gathered by assessors, using the new Home Energy Model and updated SBEM calculation methodologies;
• completing the joint review of National Occupational Standards (NOS) for EPC assessors with the UK Government and other devolved administrations, to agree on the new skills and qualifications requirements for EPC assessors operating across the UK internal market;
• completing user testing of the redesigned EPC;
• testing the new EPC Register to meet Digital Scotland user accessibility and design standards, and appointing the Scottish Ministers as keeper of the Register, working with the UK Government on the technical infrastructure, to be funded through EPC lodgement fees
• launching a process to allow existing and potential Approved Organisations to be (re)appointed by the Scottish Ministers when the new regulations come into force;
• setting out new operational governance requirements for Approved Organisations, and their member assessors, via their letters of appointment and new accreditation schemes (replacing the current Operational Framework), and through establishing a new joint governance decision-making mechanism for operational matters between the Scottish Government and AOs;
• establishing a new onsite audit and inspection function within the Scottish Government, to be funded through EPC lodgement fees;
• continuing to work with the UK Government and other devolved administrations to provide UK-wide governance oversight to the assessor market through operation of our joint Memorandum of Understanding.

Post-Implementation Review

The Scottish Government has committed to reviewing both the level of EPC lodgement fees and penalty charges within two years of the regulations coming into force, to ensure they remain fair and proportionate. We are also committed to reviewing the operation of the onsite audit and inspection function, within two years of that function first being exercised.

We will continue to monitor and review the implementation of the regulations, and the associated operational and technical infrastructure, within the market, on a regular basis. We will continue to engage with stakeholders through our existing External Reference Group and independent sub-group, to take into account their views. Likewise, we will continue to consult upon any further changes that the Scottish Government may wish to make to the regulations, or which may be needed to ensure they remain fit-for-purpose in delivering our objectives for the EPC system.