Zero emission vehicles Contents

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3Charging Infrastructure

33.The transition from new fossil fuel cars and vans to ZEVs will depend on the timely roll-out of accessible and reliable charging infrastructure. In April 2021, 20,790 public charge points were available in the UK. Of those, 4,259 were rapid charging devices. DfT data show that the geographical distribution of charge points in the UK is uneven, with London and Scotland having more public charge points per 100,000 population than other areas of the UK (see figure 2).103 Almost twice as many public rapid charge points per head of population are available in Scotland compared with London, with 11 and 6.5 chargers per 100,000 of population respectively.104 Transport for the North told us that “deployment is a fraction of what it needs to be to hit 2030.”105 In a September 2020 poll of 17,628 drivers, 69% cited a lack of public charge points as a reason not to purchase an electric vehicle.106 However, it remains to be seen whether the Government’s current plans are enough to deliver the public charging infrastructure needed across all regions of the UK.

Figure 2: Charging devices in different regions of the UK per 100,000 population

Source: Department for Transport

34.Several witnesses commented on the number of charge points required by 2030, with estimates varying wildly between 280,000 and 9 million.107 The CCC progress report to Parliament recommended that the Government should ensure the provision of 150,000 public charge points by 2025.108 A recent Policy Exchange report stated that by 2030 the UK will need approximately 400,000 public charge points, requiring charge point operators to invest between £5 billion and £10 billion alongside the Government’s £1.3 billion.109 The report noted that the increase in EVs in the UK outpaced the growth in public charging infrastructure.110 The ratio of EVs to public charge points in the UK is currently 10 EVs per charger, which is a similar ratio to Belgium and Ireland. The Netherlands, by contrast, has four EVs per public charger. However, this may be explained by drivers’ reliance on public charging in the Netherlands.111 The Government is confident that most EV drivers in the UK charge at home.112 Some 71% (693) of drivers answering our survey (see Annex A) said that they expect to charge electric vehicles at home overnight. Several witnesses declined our invitation to estimate the number of chargers needed by 2030. Graeme Cooper, Head of Future Markets at National Grid, told us that there “is no magic bullet for the right answer to charging”. Instead, he argued that it is more important to ensure “the right charger in the right space for the right duration that people are parking.”113 Charging speeds will vary depending on drivers’ needs. For example, someone charging overnight might use a 7KW fast charger, which could take four to six hours. Those charging at destinations such as retail parks might use a 22KW fast charger for a couple of hours. People charging en route would require a rapid charge point, where charging could take about an hour using a standard 50KW rapid charger.114

35.The Government has committed £1.3 billion to the roll-out of charging infrastructure, including:

• £950 million for charge points along motorways and key A-roads;
• £275 million for homes, workplaces, and on-street charging; and
• £90 million for local infrastructure (to be launched by Summer 2022).115

In addition to this funding, the Government stated that it will provide guidance to local authorities to help facilitate the transition to ZEVs. The Government has also consulted on proposals to ensure that all new residential and non-residential buildings are fitted with charging infrastructure, with regulations to come in to force later in 2021.116

On-street charging and local authorities

36.Some 30% of households do not have access to off-street parking.117 In 2017, the Government launched the on-street residential charging scheme (ORCS) to help local authorities install on-street charge points. Since its inception, more than 120 projects have benefitted from the scheme.118 The National Audit Office (NAO) stated, however, that 32% of the £8.5 million allocated up to 2020 was unused. Although the Office for Zero Emission Vehicles (OZEV) consulted local authorities before setting up ORCS, the NAO reported that the scheme “had been designed without sufficient consultation, and that as a result it was difficult to bid for.”119 In February 2021, the Government committed £20 million to extend ORCS into 2021–22. The Secretary of State for Transport also wrote to local authorities to encourage them to apply for the scheme.120

37.Several witnesses called for changes to the planning process to ensure that charge points are located in or near to new housing developments.121 The Energy Saving Trust argued that local authorities could consider the Government’s proposed building regulations for charge points as the “baseline” when reviewing their local plans.122 However, the Government stated that, as of February 2021, only some 41% of local authorities have updated local plans in place.123 The Planning Bill, announced in the Queen’s Speech 2021, will aim to provide a faster and more modern planning system, which will ensure that vital infrastructure is delivered quickly across England.124

38.The Minister told us that the application criteria for ORCS requires local authorities to set out a strategic plan for charge points.125 However, several witnesses argued that some local authorities need more resources and responsibilities for the roll-out of charging infrastructure.126 Andrew Hickford, Project Manager at Leeds City Council, highlighted a lack of resource and revenue funding to reinforce capital spending, making it difficult to deliver charge points. He informed us that local authorities often do not have a “natural home” for electric vehicle charging and that projects are instead delivered by different departments such as “environmental health, transport, highways, or road safety.”127 Witnesses told us that local authorities will require a range of resources, such as procurement, commercial and legal services as well as education and planning to install and maintain charge points.128

39.Sub-national transport bodies told us that inconsistent local strategies might fragment the roll-out of infrastructure across the country.129 For a co-ordinated and widespread network of electric vehicle charging infrastructure to be in place by 2030, regional and local transport bodies must play a strategic role in getting the right charge points in the right places.130 Peter Molyneux, Major Roads Director at Transport for the North argued that sub-national transport bodies that cover large geographical areas can provide the evidence base and be “the conduit” between local authorities, the private sector and central Government.131

40.Several witnesses told us that a flexible approach is needed to identify suitable charging locations other than on-street residential charging.132 Andrew Hickford argued that the average household vehicle travels fewer than 150 miles per week, so people only need to charge twice a week at most. That observation relates to the number of charge points that actually need to be installed on residential streets.133 Witnesses told us that hubs that serve multiple users would mitigate problems around under-utilisation and street clutter.134 Sarah Owen-Vandersluis from KPMG asserted that the “balance of charging locations” should take into account that people will plan their journeys around different options available for charging in different places.135 Charge points at destination locations, such as retail parks, gyms and libraries, are key to encouraging people to adopt electric vehicles.136

41.The Department expressed confidence about the roll-out of charging infrastructure. Richard Bruce informed us that the private sector is already investing billions of pounds in installing charge points, including rapid chargers and charge points at destination locations. The Minister told us that the Government is already working with local authorities to deliver the on-street residential charging scheme (ORCS) and will continue to do so.137 However, when we challenged the Minister on the underspend in the ORCS budget, she stated that many local authorities are applying for funding and that where the Department can see that uptake is low, it is her job to step in and offer support.138 The Minister informed us that the scheme had been adapted to encourage larger projects, improve access to funding where there is limited electrical capacity, and increase the amount of funding per charge point from £7,500 to £13,000.139 Richard Bruce said that the Energy Saving Trust offers support to local authorities on developing an EV charging infrastructure strategy. He also told us that the new £90 million local fund will be sufficiently flexible to fund resource capacity, if required.140 However, this money is not yet available, and the allocation between resource and capital spending is currently unknown.

Rural areas

42.Rural areas face particular challenges on the roll-out of charging infrastructure. People often make longer journeys in rural areas compared with urban areas. Many rural areas also rely on visitors, which makes destination charging critical.141 Several witnesses told us that the Government should intervene at potential ‘not-spots’ in rural areas, where there is a weak business case for investment because utilisation is low.142 Peter Molyneux at Transport for the North highlighted the importance of installing charge points in areas where they are not economically viable to ensure that the roll-out of charging infrastructure benefits everyone.143 Ed Birkett, Senior Research Fellow at Policy Exchange, suggested that the Government should be prepared to pay more for charge points in rural areas than in other locations where the private sector is delivering.144 However, substantial analytical work is required to determine which areas are likely to be underserved by charging infrastructure.145 Sarah Owen-Vandersluis told us that

You have to do a lot of demand modelling and make assumptions about future charging behaviour to work out which of those sites might not be viable, and over what period of time. It is quite complicated to work out what types of technology should go in—what speed of charger, what type of charger, how many connectors and all of those things.146

Ed Birkett told us that some commercial providers are starting to develop metrics, so they can work out which areas are underserved, and suggested that the Government could do the same.147

43.It is not clear how the Government will ensure the provision of sufficient charge points in all areas of the country, including rural and remote areas, by 2030. The Minister told us that the electric vehicle charging infrastructure strategy will provide more detail and take account of how people charge and make their journeys. The Minister was confident that the Government is providing sufficient certainty for the charge point market to move into rural areas. She stated that she was “absolutely sure” that in a year’s time, rural areas will have “much better” charge point provision.148 However, the Minister did not provide a clear, quantifiable target against which to measure success.

44.Drivers who do not have access to off-street parking and who live in rural or remote areas may struggle to charge their vehicles. To ensure that a comprehensive network of electric vehicle charging infrastructure is in place by 2030, sub-national transport bodies and local authorities will need to implement strategies to deliver a range of practical and accessible charging solutions to suit local needs.

45.As part of its electric vehicle charging infrastructure strategy, the Government must explain:

a)how it will support all regions and local authorities to deliver sufficient and well-maintained charging infrastructure solutions tailored to local needs, so that no area is left behind; and

b)how it will ensure that the roll-out of charging infrastructure keeps pace with the increase in EVs and that the right types of chargers are in the right locations.

46.To facilitate the roll-out of charging infrastructure, the Government must:

a)use the upcoming Planning Bill to make public charge point provision a requirement of local plans;

b)make funding for the on-street residential charging scheme dependent upon local authorities having detailed charge point plans in place which support rapid charging options; and

c)ring-fence a portion of the £90 million local charging scheme to allow local authorities to employ dedicated ‘charge point champions’ to deliver local charging infrastructure strategies.

47.The Government must work with National Grid to map the electricity network to assess potential weak areas, especially in rural locations, and to develop a plan to prevent ‘not-spots’ from emerging similar to those during the roll-out of broadband and mobile coverage.

Project Rapid

48.The Government has set out a vision for a rapid charging network across England’s motorways and A-roads to meet future charging demand from electric vehicles ahead of need.149 The £950 million rapid charging fund was announced to support private investment at strategic sites where electrical connection is expensive and commercially non-viable.150 However, the timing and delivery of this funding is yet to be confirmed. Government policy is to have at least six rapid charge points at motorway service areas by 2023, with up to 10 to 12 charge points at larger sites. The long-term plan includes 6,000 rapid chargers on the strategic road network (SRN) by 2035. Graeme Cooper from National Grid, who was involved at the start of Project Rapid, told us that provision on the SRN is important for building public confidence during the transition to ZEVs.151 That observation was reflected in our survey of drivers (see Annex A) in which a majority said that the Government’s funding for rapid chargers on the SRN gives them the most confidence to purchase an electric vehicle.

49.Several witnesses welcomed the announcement of Project Rapid and the accompanying £950 million.152 However, some raised concerns about how the money will be spent.153 Witnesses told us that the Government should allocate funding to encourage a competitive market for charge point operators.154 National Grid told us that it could take on average two and half years to build each electricity network connection, which means that the Government will need to disburse the fund quickly in order to meet its target. The Government should also accommodate the future charging demands of vehicles other than cars, such as HGVs, vans, and buses.155 Roger Hunter, Vice President of Electric Mobility at Shell UK, said “when you dig up the road and put a cable in, think a few steps ahead and then you will not have to re-dig it and put another one down later.”156

50.Richard Bruce said that Project Rapid will take place over several workstreams, with the first—providing at least six rapid chargers at motorway service areas by 2023—contingent on recently announced Ofgem funding and working with Highways England and the private sector.157 He confirmed that the rapid charging fund itself is a longer-term investment to meet the future charging demands from 100% electric vehicles by 2040 and 2050.158 This will be done in several stages, with work starting over the next year or two. However, the Minister told us that the process by which the rapid charging fund will be administered is still being worked out.159

Critical infrastructure

51.It is vital that electric vehicle drivers have access to charging infrastructure at all times. Tanya Sinclair, Policy Director UK and Ireland at ChargePoint, informed us that during the first national lockdown, charge points co-located in destinations such as retail car parks were inaccessible because those non-essential locations had to close.160 She told us that

Essential workers who were driving electric vehicles were not able to use that fuelling infrastructure. Going forward, we need to think about the proliferation of electric vehicles when they become the majority of cars and vans on the street, and ensure that drivers can trust that the fuelling infrastructure is always accessible to them.161

52.ChargePoint argued that charging infrastructure should be regarded as ‘critical national infrastructure’ and receive the appropriate Government support.162 Ed Birkett, Senior Research Fellow at Policy Exchange, said that stakeholders should work together to determine what the equivalent of fuel rationing looks like for electric vehicle charging.163 The Minister said that the Department would examine the effect of the pandemic on charging infrastructure.164

53.Although charging infrastructure is quickly becoming part of our critical infrastructure, as long as it remains attractive to private sector investment, it does not necessarily need the public sector to deliver it.165 However, Simon Statham at Midlands Connect argued that the private sector is delivering infrastructure to support relatively well-off people who have already bought, or who are planning to buy, an electric vehicle. He said that the public sector should intervene to put charge points in other locations to incentivise different groups of people to choose electric cars.166

54.The Minister confirmed that work undertaken through Project Rapid and the rapid charging fund is already designated as critical national infrastructure.167 However, some witnesses called for the Government to extend the scope of Project Rapid beyond the SRN to address electricity network distribution bottlenecks, such as across rural areas and at fleet and logistics hubs.168 The cost and administrative processes of upgrading electricity connections may often deter businesses, including charge point operators, from investing in infrastructure.169 Many businesses may also be unwilling to take the first step in upgrading local connections due to the ‘first mover’ principle, whereby the company that pays for the costs of the grid upgrade is disadvantaged compared with competitors that will benefit from the upgrade.170 Ofgem is consulting on socialising electricity reinforcement costs across all energy bill payers to reduce the costs of connecting charge points to the electricity network.171

55.A pilot scheme in Scotland, Project PACE, was successful in installing 180 public chargers at 40 sites across Lanarkshire. The project was a strategic partnership between Transport Scotland, SP Energy Networks, and local authorities. It ensured that distribution network operators (DNOs) were involved in various stages of charge point roll-out, including costs and delivery timescales. SP Energy said that the project, which targeted locations that already made effective use of the electricity network, would deliver up to £60,000 savings on electricity grid connections and increase EV charging capacity by 360%. It argued that scaling up the project to the whole of the UK could see £310 million in savings.172

56.Unanswered questions remain on grid upgrades and associated issues, such as addressing the high costs of obtaining wayleaves, which may be mitigated by classifying charge point locations as critical infrastructure.173 The Government has said that facilitating charge point installation is a private negotiation between the company and landowner. However, the landowner is under no obligation to grant a wayleave. If agreement is not reached between the parties, the electricity licence holder (the electricity company) has powers under the Electricity Act 1989 to apply, on behalf of the company seeking a wayleave, to the Secretary of State for Business, Energy and Industrial Strategy for a compulsory wayleave.174

57.The relationship between landowners and telecommunications operators is regulated by the Electronic Communications Code under the Digital Economy Act 2017. The new code gives rights to telecommunications providers to install and maintain physical equipment in, over and under land. Under the reformed code, rent is calculated based on the current value of the land to the landowner and not the economic value to the operator as a future telecommunications site.175 When we questioned the Minister on the high expenses associated with wayleaves for installing charging infrastructure, she acknowledged the issue and stated that the Department is working with other Departments to resolve it.176

58.Project Rapid, which specifies the number of charge points on the strategic road network by 2023 and beyond, is welcome. However, the spending priorities for the £950 million rapid charging fund are currently obscure. Given the time and expense involved in upgrading grid connections, it is crucial that this money is distributed to unlock investment, provide fully future-proofed grid capacity and secure public confidence in charging infrastructure.

59.The electric vehicle charging infrastructure strategy must set out:

a)how the £950 million rapid charging fund will be spent to facilitate the implementation of charging infrastructure; and

b)the measures that the Government is taking to identify and address under-provision at locations outside the strategic road network, where grid connection costs and grid upgrades are expensive and the business case for investment is weak.

60.The Government must amend the wayleave regime for installing charging infrastructure to ensure that that regime does not act as a barrier to roll-out.

61.We questioned the Department on emergency planning for cases in which electric vehicles might be stranded on UK roads, particularly along the strategic road network. We raised the concern that EVs might run out of charge if they were to sit in stationary traffic due to congestion for an extended period while using the battery for heating or cooling. The Minister recognised that the concern was “understandable.”177 She informed us that only 1KW to 3KW of electricity is used by the air conditioning system when a vehicle is moving at slow speeds. The Minister also claimed that running out of fuel, whether conventional or electric charge, accounts for few breakdowns, especially on the strategic road network.178 We also examined the length of time that it takes to recover electric vehicles. The Minister acknowledged that EVs are difficult to tow with their wheels still on the ground, making the recovery process longer than for ICE vehicles. She said that Highways England and the breakdown sector have taken steps to anticipate the transition to electric vehicles.179 However, we urge the Government to monitor the situation as the number of EVs increases.

Customer experience at public charge points

Interoperability

62.It is important for consumer confidence in charging infrastructure that drivers can access networks with common standards of interoperability when charging their electric vehicles.180 Full interoperability allows drivers to use any app to access a charge point network, obtain information and make a payment.181 However, the current lack of interoperability between public charging networks is a significant barrier to the uptake of electric vehicles.182 For example, many different networks have their own payment systems that require drivers to use different apps and key fobs and to register their bank details with each network.183

63.The Government pointed out that charge points installed with public money already have strict eligibility criteria. However, it has acknowledged that more should be done to improve the customer experience at public charge points and stands ready to regulate, using powers under the Automated and Electric Vehicles Act 2018, if needed.184 A recent Government consultation included proposals to ensure open, accessible and available charge point data, a reliable charging network, streamlined payment methods and clear pricing metrics.185

64.Shell UK argued that although interoperability is important for the consumer and could be mandated, it should be based on commercial agreements between operators.186 Ed Birkett from Policy Exchange cautioned against blanket solutions for interoperability. He told us that heavy-handed regulation could ruin some business cases and slow down the roll-out of charge points.187 Instead, he argued, the Government should ensure high interoperability standards for charge points that receive public money.188 The EV Energy Taskforce (EVET) proposed to the Government that if industry has not achieved convergence on a set of standards that meet interoperability by 2025, then the Government must intervene.189

65.ChargePoint told us that the Netherlands has implemented full interoperability between all charging networks based on cross-network agreements. However, it observed that progress in the UK is too slow to achieve full interoperability because not all charging market players have been willing to co-operate. As a result, ChargePoint told us that the Government should mandate interoperability.190

66.The Minister confirmed that the Government “absolutely” plans to regulate for interoperability between public charge points later this year.191 She acknowledged that, although there is an overriding need to legislate, the right balance needs to be struck between making charging easier for the consumer and allowing the market to remain attractive for investment.192

Cost of charging in public

67.Several witnesses told us that the Government should find a way to ensure that pricing is fair for people who charge their electric vehicles in public.193 Ed Birkett from Policy Exchange told us that on-street charging will always be more expensive than off-street because the customer is paying for both the electricity and the capital cost of the charge point being installed.194 The National Audit Office (NAO) has found that charging at home is between 59% to 78% cheaper than charging in public.195 Charge point operators told us that consumers who charge their electric vehicles at home only pay 5% VAT, whereas drivers who rely on the public charging network incur 20% VAT.196 Ed Birkett suggested that the Government and/or local authorities could impose price caps on charge point operators where a charge point operator could claim a local monopoly.197 Other witnesses called for mechanisms to ensure pricing transparency.198 There are public charge points across the UK where drivers can charge their vehicles for free. However, availability varies significantly with 60% of chargers located in Scotland free to use. By comparison, 22% of public chargers in the South East and 31% in the North West are free. Most free chargers in Scotland are provided by ChargePlace Scotland, a Government backed national network of charge points, with 1000 of their chargers free to use.199

68.The Minister told us that the Government has ruled out introducing price caps to address the higher costs of charging in public compared with charging at home.200 Instead, the Minister said that the market will play a huge role and that the Government will regulate to ensure pricing transparency at public charge points.201

69.Charging an electric vehicle should be convenient, straightforward, and inexpensive. To boost consumer confidence in the charging network, to maximise convenience and value for motorists and to facilitate connectivity, all charge points should be interoperable and provide a seamless experience for drivers. We welcome the Government’s commitment to regulate interoperability and pricing transparency for public charge points later in 2021.

70.In the charging infrastructure strategy, the Government must explain how it will improve the consumer experience at public charge points and ensure that

a)drivers can seamlessly access any charging network in any location at any time; and

b)charge point operators are not disincentivised from investing in charging infrastructure.

71.People who rely on public charging infrastructure should get value for money and should not be disadvantaged by unfair pricing mechanisms.

72.The Government must explain how it plans to tackle the potential price differential faced by people who cannot charge their vehicles at home and are compelled to rely on on-street public charge points. It could do this by:

a)protecting the consumer from excessive costs where there are risks of local monopolies emerging; and

b)addressing the discrepancy between the 5% VAT incurred on electricity at home compared with the 20% VAT incurred at public charge points.