Energy Performance of Buildings (Scotland) Regulations 2025: data protection impact assessment

Data protection impact assessment (DPIA)

Introduction

The purpose of this document is to report on and assess against any potential data protection impact as a result of the implementation of the Energy Performance of Buildings (Scotland) Regulations 2025.

Energy Performance Certificate Reform (The Energy Performance of Buildings (Scotland) Regulations 2025)

EPCs are an important source of information for current and potential building owners and tenants to help them understand the energy performance of their building. EPCs must be provided when a building is advertised for sale or for let to a new tenant, and upon completion of construction of a new building. They have, in practice, formed part of the prescribed documents of the Home Report since 2008.

The need for reform

The current EPC rating system has been widely criticised for not measuring and incentivising the most useful thing for consumers to understand net zero climate impacts. For energy efficiency, this means that, since they are based on energy cost, they do not accurately reflect how good the building’s insulation is as the rating is strongly influenced by the cost of fuel. External stakeholders and independent reports have also highlighted concerns around the relevance, accuracy and quality of EPCs produced. In large part, this reflects the changing policy landscape in the 16 years since EPCs became a legal requirement in Scotland – in particular since 2019 with the requirements of the Climate Change (Emissions Reduction Targets) (Scotland) Act 2019^[1] (which sets targets to reduce Scotland's emissions of all greenhouse gases to net-zero by 2045).

The Scottish Government recognises the need for reforms to remove the potential perverse outcomes of the current EPC rating system and to ensure that EPCs give more accurate and useful information to consumers on their building’s performance against statutory net zero climate objectives.

The technical and operational infrastructure upon which EPCs are based is now life-expired and needs to be replaced. The technical infrastructure covers two elements: the EPC Register which is currently maintained by the Energy Saving Trust, appointed by the Scottish Ministers as Keeper of the Register; and the EPC calculation methodology (currently provided by SAP and SBEM). For domestic EPCs, the SAP calculation methodology is no longer fit-for-purpose in being able to measure and calculate the wider range of issues that need to be addressed in a reformed EPC (i.e. the metrics it reports are not aligned to policy objectives, and the methodology itself has been criticised as inaccurate), and needs to be replaced by the new UK Home Energy Model (HEM) and cloud-based calculation service (ECaaS) (expected in 2026). For non-domestic EPCs, the SBEM calculation methodology requires significant updates to specifically report non-domestic buildings’ direct emissions from heating systems and to model energy performance.

The operational infrastructure consists of the Approved Organisations and assessors, which must meet requirements set out in the EPC regulations, and in the EPC Operational Framework. The current Operational Framework (which governs the conduct of assessors and the Approved Organisations) was established by the Scottish Government and introduced in late 2012 as part of the transposition of the recast Directive^[2]. This framework is also now life-expired and must be reviewed and reformed in order to support the reforms and to improve the overall assurance of EPC quality.

Our decisions on EPC reform

The Scottish Government has consulted extensively on a package of reforms to address the need for reform outlined above. Following an initial scoping consultation in 2021^[3], we consulted again in 2023^[4] on a final package of proposed reforms to improve the quality of EPCs and make them more fit-for-purpose in supporting net zero. This was followed by a further technical consultation in early 2025 on EPC lodgement fees and penalty charges^[5]. We have also conducted an internal review during 2024-25 of the operational governance arrangements covering the Approved Organisations, EPC assessors and the Operational Framework, which has been supported by the evidence given during the technical consultation.

The Scottish Government set out its final decisions on EPC reform in its response to the 2023 consultation^[6], which committed to laying new EPC regulations in Parliament later during 2025. We also concluded our review of operational governance during spring 2025.

In summary, the Government Response to the 2023 consultation set out our final decisions on reform. We will:

• introduce new EPC regulations in the Scottish Parliament during 2025 and bring them into force in 2026.
• adopt a new EPC rating system for domestic buildings:
• Heat Retention Rating (fabric energy efficiency)
• Heating System Rating (type, emissions, efficiency, running costs)
• Energy Cost Rating (retaining the existing SAP-based EE Rating)
• adopt a new EPC rating system for non-domestic buildings.
• adopt a redesigned EPC certificate.
• reduce the validity period of EPCs from 10 to five years.
• develop a new EPC user interface to sit alongside the published EPC.
• introduce strengthened operational governance arrangements for EPC assessors and Approved Organisations to enhance quality assurance for consumers.
• establish a new technical infrastructure: replacing the Standard Assessment Procedure (SAP) with the new UK Home Energy Model (HEM) calculation methodology; design and build a new EPC Register to be kept by the Scottish Ministers.
• continue to work with the UK Government and devolved administrations where we share elements of the EPC regulatory system across the UK internal market.

Purpose/Aim of Action & Desired Effect

The purpose of the new regulations is to put in place reforms to the EPC regime that address the issues highlighted above. This will involve making EPCs as accurate and high quality as possible, to ensure Scottish citizens can make informed choices to ensure their homes and workplaces are retrofitted for net zero.

The aim of our reforms is to ensure EPCs:

• Give better information to current and prospective property owners and tenants on the net zero impacts of their property.
• Continue to perform their role as a key feature of a functioning property market whenever properties are sold, let or constructed.
• Are based on the most accurate methodology.
• Are carried out to the highest standard.
• Adopt updated methodologies and infrastructure shared with the UK Government.
• Maintain broad alignment with the recast EU EPBD, in particular through introduction of a new onsite audit and inspection regime to verify the accuracy and reliability of certificates.

The overall intended outcome is to maintain a functioning EPC system which remains an integral part of the property market (whenever a property is advertised for sale or let), which consumers can trust, and which delivers high quality, accurate, reliable, and relevant information to help them make decisions on the energy efficiency and contribution to net zero of their property.