The Scottish Government has been ahead of the rest of the UK in its attempts to introduce methods which are designed to change behaviour and encourage people to operate in buildings in a more energy efficient manner.

The Assessment of Energy Performance of Non-domestic Buildings (Scotland) Regulations 2016 came into effect on 1 September and are aimed at effecting those behavioural changes.

A summary of the relevant terms (including the position in England (which has an entirely separate and distinct set of regulations), to illustrate the differences in timing and content) can be found here.

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The key relevance of the 2016 Regs for IPs is not necessarily around implementation of the regulations but rather the effect of their existence on properties under (or to come under) an IPs control via an insolvency appointment.

The obligations can be onerous and in any sale or lease situation the costs of implementing any required Action Plan could have a material effect on either or both of the price for and marketability of any property.

It is worthwhile being aware of the impact of the 2016 Regs to enable consideration to be given to the real estate strategy in any distressed assignments.