What is an Action Plan?
The Assessment of the Energy Performance of Non-Domestic Buildings (Scotland) Regulations 2016 created a somewhat advanced form of an Energy Performance Certificate, known as both a section 63 Assessment but more commonly known as an Action Plan.
When do you need an Action Plan?
Action Plans apply to non-domestic buildings or buildings with a floor area over 1000 square metres, which do not comply with the 2002 Scottish Building Standards. The trigger for requiring an Action Plan is upon the sale or lease of the Premises.
When do you not need an Action Plan?
The requirement for an Action Plan would not be triggered in the following instances:
- Renewal of a lease for an existing tenant;
- Short-term leases for less than 16 weeks (containing no option/obligation/right to extend term beyond this, provided it was not let out during the previous 36 weeks);
- Sale or lease of a property before construction has been completed;
- Property has already been improved by the Green Deal;
- Temporary buildings with a planned time of use of 2 years or shorter; and
- Workshops and non-residential agricultural buildings with low energy demand
Make improvements or Display Energy Certificate?
When an Action Plan is triggered, the owner can either elect to carry out the improvement measures, prescribed in the regulations, within 42 months of the date when the first action plan was issued; or they can defer the carrying out of these works, and instead implement operational rating measures. If they opt for the latter, they must obtain and display a Display Energy Certificate in a clearly visible place within the premises, renewing this Certificate annually. As long as you begin reporting within 1 year of the first action plan being issued, you can continue to defer the works as long as you implement these operational rating measures. Failure to renew the certificate or obtain this within the first year of the action plan being issued will result in losing the right to defer the carrying out of works.
So, are they really tackling the targets to reduce our carbon dioxide emissions?
When meeting with an Action Plan provider, out of the 70 Action Plans that had been prepared, only 1 had opted to carry out the improvements. With the current system, owners can defer the carrying out of the works without limit. If the current system was amended to implement a limit on the deference, such works would not only reduce our carbon dioxide emissions, they could also make a dent in the growing obsolescence of Scottish commercial stock.
What now?
To make the entire system more desirable to owners, owners could focus on the long-term improvements and savings they will make. Perhaps, the introduction of tax incentives by the Government for owners carrying out the works would go some way to making the prospect of carrying out these works far more desirable.
In addition, there could be a shift of the burden from solely just the owner. As the tenant is on the front line of the premises energy use, the burden could be split between both the owner and the tenant.
If you would like any assistance or advice on your options regarding your obligations in respect of these regulations, then please contact our experienced team.
