Building regulations - proposed changes to energy and environmental standards: stage 2 consultation and BRIA

5 Scottish Firms Impact Test

5.1 Competition assessment

Having reviewed the five competition filter questions provided with the Competition and Markets Authority Fair Trading document “Competition assessment guidelines, Part 2: guidelines”, it is considered that proposals set out in this consultation will not result in a significant impact on competition within the market place.

In support of the above, it is noted that:

• The manner in which standards for new buildings are set allows for flexibility in the solutions adopted which reduces the emphasis on performance of individual products or solutions;
• New regulations and improved standards are a recognised driver to product improvement and to innovation and as such, an element of challenge to all parties involved in delivering products and services is expected.

No significant areas where issues of competition, restriction or imbalance will arise have been identified as part of this review.

5.2 Consumer assessment

The Scottish Government definition of a consumer is “anyone who buys goods or digital content or uses goods or services either in the private or public sector, now or in the future.”

While changes to building regulations affect any party who chooses to build a new building or carry out new building work to an existing building, we must recognise that consumers will eventually use or live in these buildings.

New regulations and improved standards are a recognised driver to product improvement and to innovation and as such there is likely to be an associated cost uplift due to the changes that are brought about by the improvement in building standards. Any potential cost uplifts are reported in this partial BRIA and will be confirmed through development of the final BRIA.

At this stage, the proposed changes do not create any adverse impact on consumers beyond what may reasonably be expected by a regulatory regime of this type (application of minimum standards to a process).

5.3 Test run of business forms

There are no new business forms proposed within the confirmed regulatory changes. However, these changes do relate to the manner in which information will be presented to verifiers as part of the design and construction process.