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Scotland

Heat in Buildings Bill consultation opens

The Scottish Government has opened a consultation on proposals for a Heat in Buildings Bill, setting out plans to regulate the heating systems and energy efficiency of homes and other buildings.

A newspaper on a kitchen table beside a model of rules and regulation

The Scottish Government opened a public consultation on proposals for a Heat in Buildings Bill on 28 November 2023, running until 8 March 20241. The consultation paper, published by the Energy and Climate Change Directorate, sets out proposals for new laws around the energy efficiency of homes and buildings and the way they are heated, and contains 28 questions seeking stakeholders' views1.

The paper proposes a Heat in Buildings Standard with three linked parts: a prohibition on the use of polluting heating systems after the end of 2045 for all buildings; a requirement for owner-occupied homes to meet a minimum energy efficiency standard by the end of 2033; and a requirement for private landlords to meet that standard by the end of 20283. As a pathway to 2045, it proposes requiring those purchasing a home or business premises to end their use of polluting heating systems within a fixed period following completion of the sale, likely two years3. The consultation describes five points at which the Standard may be met4:

PointRequirement
OneAt the end of a grace period following completion of a property purchase
TwoFollowing notice from a local authority to a building owner in a Heat Network Zone
ThreeAt the end of 2028, private landlords to have met the minimum energy efficiency standard
FourAt the end of 2033, owner occupiers to have met the minimum energy efficiency standard
FiveAt the end of 2045, all building owners to have ended their use of polluting heating

The impact assessment published alongside the consultation states that 81% of Scottish homes use mains gas, 5% use heating oil and a further 2% use LPG or solid mineral fuels, together accounting for an estimated 88% of the Scottish residential fuel mix5. It states that only around 11% of households currently have a renewable or very low emissions heating system, such as a heat pump, biomass boiler or electric storage heating5. The executive summary states that around 5,000 people per year are installing heat pumps and around 33,000 buildings are connected to heat networks4.

The ministerial foreword states that the transition offers opportunities for warmer homes and for ending exposure to volatile fossil fuel prices2:

"If we are to break our dependence on turbulent fossil fuel markets, increase our domestic energy security and achieve greener and more reliable ways to heat our homes and community buildings, and if we are to avoid the unacceptable increases in fuel poverty seen over the last year, this is the opportunity ahead of us."
Ministerial Foreword, Heat in Buildings Bill consultation2

The impact assessment states that from April to June 2023 there were around 920,000 fuel poor households in Scotland, 37% of all households, an increase of 60,000 from estimates for the winter, and that the withdrawal of the £400 Energy Bills Support Scheme from April 2023 was the main driver behind this increase5. It also states that the 2040 fuel poverty targets require that no more than 5% of households are fuel poor and no more than 1% are in extreme fuel poverty by 20405.

Why it matters for households

The proposals would eventually affect almost all households and businesses in Scotland, according to the consultation4. For owner occupiers, the paper sets out a minimum energy efficiency standard to be met by the end of 2033, and for private tenants, a standard their landlord would have to meet by the end of 20283. The consultation describes meeting the standard either through installing a number of simple insulation and draught-proofing measures, where those are possible, or by meeting a certain level of heat demand1. For a home's energy independence, the practical effect is that the efficiency of the building fabric and the fuel used for heating become matters of regulation rather than choice alone, with the end of polluting heating set for 20453. The consultation states that the proposals are designed to apply where it is affordable, fair and feasible, and that exemptions are proposed where needed ahead of 20451. It also states that significant powers, including over funding, regulation of suppliers and the pricing of gas and electricity, lie with the UK Government2.

What happens next

The consultation closes on 8 March 20241. Responses will be published after a delay while they are checked against the site's terms of use, and an analysis report will usually be published some months after the consultation has closed1. The consultation document sets out the subsequent stages: introduction of a draft Bill to Parliament, Stage 1 committee consideration and a vote on general principles, Stage 2 amendments, Stage 3 final vote, Royal Assent, and secondary legislation where needed, which would be subject to further consultation1. The executive summary states that planned legislation from this consultation is expected to come into play in the second half of the 2020s and well before 20304.

Sources5 cited
  1. [Proposals for a Heat in Buildings Bill: Consultation