In Scotland, there is now a requirement to conform to Section 63 Legislation.
On September 1st 2016 Section 63 of The Assessment of Energy Performance of Non-domestic Buildings (Scotland) Regulations 2016 was implemented.
The regulations require the energy performance and greenhouse gas emissions of non domestic buildings in Scotland to be assessed and steps taken to improve the energy performance and reduce emissions.
About Section 63
What is a Section 63?
Section 63 relates to Section 63 of the Climate Change (Scotland) Act 2009 - The Assessment of Energy Performance of Non-Domestic Buildings (Scotland) Regulations 2012.
It currently applies to buildings over 1000sqm which is intended for sale, lease or rent.
What is the Purpose of a Section 63
Its purpose is to follow on from the assessment of the building asset - through an EPC - for either its compliance with minimum energy standards of the 2002 Scottish building regulations; or to forward an Action Plan for energy improvements.
Do I Need a Section 63?
The following conditions apply:
(a) Is your building asset being offered for sale, lease or rent?; if yes
(b) Is your building asset greater than 1000sqm?; if yes
(c) Can you prove your building asset complies with minimum energy standards of the 2002 Scottish building regulations? If not then you need a Section 63 assessment
Fines for Non-compliance are imposed by Trading Standards; the Building Owner is responsible. When the building is put on the market for sale or rent, a £1000 fine could be implemented for each failure to produce one free of charge to anyone.
How Long does a Section 63 Assessment Last?
A section 63 assessment is valid for ten years, however Action Plan requirements have their own timescales; typically 42 months from the date of the finalised Section 63 Action Plan to complete the improvement measures.
What is the Process of the Section 63 Assessment?
The Section 63 assessment process comprises of four stages:
Stage 1: Compliance check with the minimum energy requirements of 2002 Building Standards; if the building is compliant - confirmed through the use of a valid EPC - then no further action is required.
Stage 2: Prescriptive Measures
(i) The building asset is modelled as in the usual way of a commercial energy performance certificate;
(ii) Energy efficiency and carbon emission reduction targets are calculated;
(iii) The model then applies - using Scottish Government approved software - a series of six prescribed measures to the asset;
(iv) The model then returns a series of the most appropriate prescribed measures as applied to the building;
Stage 3: Alternative Measures
(i) Following from stage 2 the building asset is modelled with a series of differing alternative intervention measures;
(ii) From each alternative measure, the energy efficiency and carbon emission improvements are calculated;
Stage 4: Action Plan
(i) At least one alternative measures, together with the prescribed measures are presented to the building owner or their representative;
(ii) The building owner of their representative then agrees with the assessor the interventions they would like to forward in an Action Plan;
(iii) The Action Plan must include measures which, as a minimum, achieves the target energy efficiency and carbon emission savings, calculated in Stage 2 (i);
(iv) The Action Plan is then lodged in a central register.
Is it illegal to rent, lease or sell a commercial building without a Section 63 Assessment?
Yes. For a building over 1000 sqm in Scotland a compliance check is the minimum required to ensure legal compliance.
Penalties for not having Completed a Valid Section 63
Unless exempt, if an Action Plan is not provided upon sale or rent or improvement works are not completed within the required time, a £1000 fine could be implemented for each failure.
As with the EPC it must be made available free of charge to the prospective buyer or tenant and be the most up to date version.
How Much Does a Section 63 Assessment Cost?
The Section 63 process comprises many stages. The cost depends not only on how far you wish to conduct the assessment, but also the size and complexity of the building in question.
Northern Environmental strives to always give best value for such assessments. As such our quotes are site and building specific. As a guide it should cost no more than the cost of an Energy Performance Certificate.
Is a Section 63 Assessment Value for Money?
A Section 63 Assessment is an intricate process. A good assessor will always strive to give the best cost-benefit for any action plan;
In other words, the savings to the energy bills will more than compensate for any upfront costs of producing the action plan;
Who pays for - and/or or coordinates - the improvement works?
The legislation does not stipulate who should coordinate or pay for the works, but the building owner is responsible.
It should always be remembered that the purpose is to reduce energy and carbon emissions so year on year savings should be expected. This payback can be administered and recovered in a variety of ways, such as the current or new owner; or the new tenant.
The legislation therefore allows for flexibility for coordination and to be included within contract negotiations.
Above all considerations, it is to be remembered that your building assets are being future proofed by taking the necessary action now and anticipating future change. Speak to Northern Environmental about coordinating, future proofing and managing all your assets.
Why Choose Northern Environmental?
This company brings skills plus experience such as 20+ years of working in the environmental sector at all levels of national Governance; Chartered Environmentalist and UK Accredited Lead Energy Assessor. As such the company is best placed to identify the most efficient - cost effective - way to ensure you are compliant with - if not exempt from - Section 63. Call us on 0141 280 8101 to find out how you can optimise your energy and your money.