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The decision to cut the plug-in car and van grant by up to £1,000 and change the eligibility criteria has been criticised by the fleet and leasing industry.

The Department for Transport (DfT) said the reduction would make its “available funding go further” and help more businesses and consumers make the switch.

Announcing its Net Zero Strategy in October, the Government confirmed £620 million funding for zero emission vehicle grants and EV infrastructure, including funding for local EV infrastructure, with a focus on local on street residential charging.

The additional money for the plug-in grant, however, came after ministers said the grant would reduce as electric vehicle (EV) adoption rates increase.

It also warned that it was “unlikely” it will be able to give advance notice of cuts to the plug-in car and van grant after a reduction in the grant for the purchase of electric vehicles (EVs) was announced without any notice in March.

The electric car grant was cut from £3,000 to £2,500 and models that cost more than £35,000 were excluded.

Mike Hawes, chief executive of trade body the Society of Motor Manufacturers and Traders (SMMT), said: “Slashing the grants for electric vehicles once again is a blow to customers looking to make the switch and couldn’t come at a worse time, with inflation at a 10-year high and pandemic-related economic uncertainty looming large.

“Industry and Government ambition for decarbonised road transport is high, and manufacturers are delivering ever more products with ever better performance. But we need to move the market even faster – from one in a hundred cars on the road being electric, to potentially one in three in just eight years – which means we should be doubling down on incentives.

“Other global markets are already doing so whereas we are cutting, expecting the industry to subsidise the transition, and putting up prices for customers. UK drivers risk being left behind on the transition to zero-emission motoring.”

Richard Jones, managing director at Lex Autolease and Black Horse at Lloyds Banking Group, said that the industry understood policymakers will need to continuously review the grants available as the uptake in EVs continues to accelerate. 

However, he told Fleet News that the announcement to reduce the eligibility threshold from £35,000 to £32,000 for electric cars impacts around 60% of the vehicles available in the market, increasing rentals on new orders on a 36-month agreement by around £70 a month overnight.

He added: “We hope that Government departments and industry bodies continue to work together to maximise the opportunities to encourage EV uptake and reassure manufacturers that the UK is leading the EV charge.”

Jon Lawes, managing director of Hitachi Capital Vehicle Solutions, agreed. He said: “Last minute cuts are counter intuitive to achieving the ambitious targets set by Government to reduce carbon emissions and has the potential to dampen the strong demand for zero emission vehicles we’ve seen in recent months.”

Despite the growth of EV registrations, Lawes says the market remains in its “infancy” and total cost of ownership (TCO), especially across LCVs, can be “challenging” for fleet operators who need to adopt.

“The Government rationale to reducing eligibility at this juncture for the second time this year is confusing, as we know financial incentives to encourage EV adoption are an important factor within the vehicle renewal decision making process,” he said.

“In light of these changes, we are working closely with our customers to recalculate their TCO so they can readily factor this development within their decision making.”

Gerry Keaney, chief executive of the British Vehicle Rental and Leasing Association (BVRLA), said that financial incentives, such as the plug-in grant, had proven vital to fleets and consumers making the switch to an EV.

“Subsidies cannot run forever, but the fleet sector relies on certainty, reducing these grants will have a negative impact on this,” he said.

Electric car subscription service, Onto, also believes the changes risk slowing down electric car adoption rates, ultimately putting the climate change goals at risk.

Co-founder and CEO of Onto, Rob Jolly, said: “We heard at COP26 the government’s focus was on getting people into electric cars quickly, and yet this decision will only slow down the adoption of EVs.

“We know that range anxiety is the number one consumer concern and reducing the cap to £32,000 means customers have no choice but to buy smaller cars with smaller ranges.

“We understand that the money-pot is finite and the grant must be lowered £1,500 to make economical sense, however we strongly disagree with the reduction of the cap – in fact it should have stayed at £50,000 to give consumers choice and help them make the switch.”

Sue Robinson, chief executive of the National Franchised Dealers Association (NFDA), which represents franchised car and commercial vehicle dealers in the UK, says the cut is “extremely disappointing” and warned it could “derail” the progress.

She added: “Cutting the grant strongly disincentivises EV adoption across the UK. This, in turn, will exacerbate the unequal, regional EV uptake gap.

“While the market share of EVs is growing at an impressive rate, it is premature to reduce the levels of this support to the consumer and send the wrong message to the public, especially as other G7 nations continue to ramp up consumer support.”

Tanya Sinclair, policy director for UK and Ireland at ChargePoint, said: “We understand the Government’s broad programme of grants and incentives was always designed to stimulate the early EV market and, over a decade since their inception, the EV market continues to develop at pace.

“We look forward to the Government announcing a long-term, more sustainable successor to the grant schemes which can incentivise EV uptake, such as fiscal incentives and road pricing.”  By Graham Hill thanks to Fleet News

Transport for London (TfL) has announced that there will be no congestion charge after 6pm from February 21.

Operating hours on weekends and bank holidays will also be reduced from 12pm to 6pm. The current charge level of £15, however, will be retained after it was raised from £11.50 during the pandemic.

Natalie Chapman, Logistics UK’s head of policy for the South, welcomed the announcement confirming the operational hours of the Congestion Charge will revert back to the original weekday timings.

“This will provide additional flexibility to retime deliveries to less congested times with the potential to reduce emissions, improve the safety of vulnerable road users and increase operational efficiency,” she said.

“However, Logistics UK is disappointed that the charges will apply on weekends and bank holidays, and that the £15 charge level will be retained, but the fleet autopay discount removed.

“This simply amounts to an additional tax for logistics businesses who currently have little alternative but to use lorries and vans to keep London stocked with all the goods the population needs.”

TfL launched a consultation on the congestion charge in July, after the hours of operation were extended in June 2020 when the Government had to bail out TfL after a financial crisis caused by the onset of the pandemic.

Mayor of London, Sadiq Khan, defended the changes, saying they “strike a balance” between reducing traffic and congestion and supporting London’s economy and residents.

He explained: “The removal of the evening charge will support the capital’s culture, hospitality and night-time businesses which have struggled so much, as well as encouraging people to walk, cycle and use public transport.

“It’s vital we do not encourage a car-led recovery and replace one public health crisis with another due to filthy air.”

The Congestion Charge will also be suspended between Christmas and the first working day of the New Year.

Alex Williams, TfL’s director of city planning, said: “These changes are targeted at reducing traffic at the busiest times where we have seen a long-term trend in high levels of car travel.

“We expect to see growth in the number of people walking, cycling and using public transport in central London as a result.

“The removal of the charge in the evening will help shift workers who perform essential roles at the heart of the city and support London’s vibrant cultural and hospitality sectors who are still recovering from the pandemic.”

The Mayor’s target is for 80% of trips made in the capital in 2041 to be by walking, cycling or public transport, and the target for central London is 95% of trips to be made by these sustainable types of travel.

The new weekend charging hours are targeted at reducing congestion at the busiest times.

Weekend car and private hire traffic before the pandemic was higher than during the week and made up 70% of traffic in the charging zone on a Saturday and Sunday.

It is estimated there will be an increase in sustainable travel compared to before the pandemic, with around 8,000 new public transport trips and 3,000 walking and cycling trips each day on the weekend, says TfL.

Reimbursement arrangements will be retained to facilitate essential trips made by certain NHS patients, care home workers, local councils and charities during epidemics and pandemics. The expanded NHS staff reimbursement arrangement will also continue.

Other permanent changes being implemented include:

• The deadline will be extended for making a delayed payment to three days after the day of travel. The delayed payment charge is £17.50
• The Auto Pay and Fleet Auto Pay discount will be removed
• The ability for residents to pay by App or online for multiple consecutive charging days will be removed
• The majority of the changes will come into force on December 20, aside from the changes to hours of operation, which will take place on February 21.
• This is to allow for changes to operational systems and to alter the signs that inform drivers of when the charge is in operation.

By Graham Hill thanks to Fleet News

The upward march of fuel prices is continuing to cause misery for UK drivers. Following the recent announcement that the cost of petrol hit a record high, the cost of diesel has followed and it’s now become the most expensive it’s ever been.

The average price of diesel is 147.9p per litre and is now 30p more than it cost in January 2021. Petrol has also broken previous records, and now stands at 144.4p per litre. These record highs have not been caused by recent fuel shortages, but through the rising costs of crude oil. They hit the average driver hard – the cost to fill up your family car with 55 litres of diesel now comes in at £81.

The effects of this will affect business and logistics hard, with goods and services bearing the costs of more expensive diesel, as most vans in the UK are fuelled from the black pump.

The price of crude oil is $86.09 (£62.96) a barrel, and is closing in on record highs of more than $120 (£87.76) in 2012. The upshot is that if crude oil rises to those levels, they will be reflected in even higher prices, causing more pain for drivers who are already seeing their budgets stretched.

RAC fuel spokesman Simon Williams said: ‘This is truly a dark day for drivers, and one which we hoped we wouldn’t see again after the high prices of April 2012. This will hurt many household budgets and no doubt have knock-on implications for the wider economy.’

He continued: ‘Even though many people aren’t driving quite as much as they have in the past due to the pandemic, drivers tell us they are more reliant on their cars now than they have been in years, and many simply don’t have a choice but to drive. There’s a risk those on lower incomes who have to drive to work will seriously struggle to find the extra money for the petrol they so badly need.’

What this means for you

The last time we had high fuel prices like this, government or market intervention resulted in them dropping sharply after sustained growth. However in this case, the situation is unlikely to improve soon, as the cost of crude oil is set to continue going up until at least the end of 2021.

In the UK, government-levied taxes make up 57% of the average retail price for a litre of petrol, according to the RAC, and the prospect of the government dropping fuel duty looks remote.

What this means for you is that you’re going to be facing increased fuel bills in the short-to-medium term. Driving more economically will alleviate the pain somewhat, or if you’re looking to change your car, look more closely at the fuel consumption figures – or even consider switching to an electric car, which are cheaper for running costs in terms of Miles Per Pound. By Graham Hill thanks to Parkers

In my new book about electric vehicles I explain that the Government doesn’t need to invest in charger infrastructure with the exception of rural areas where local councils may need some help. It seems that the Government had this on their radar and have made the following announcement.

Innovate UK has awarded £335,000 to Bonnet, EDF, DG Cities and Devon County Council to help improve the charging of electric vehicles (EVs) in rural locations.

With backing from the Government, the Rural Electric Mobility Enabler (REME) project – a group of private and public organisations – has embarked on an eight-month project to provide solutions to improve public charging provision in rural regions.

The partners are using technology, data and grid expertise to understand the challenges of access to EV chargers and the associated energy supply from the grid, which will be caused by increased EV usage.

The project focuses on Devon, using the council’s data to understand seasonal flows of people to the area and how this will impact future public charging demand.

DG Cities and EDF use field dynamic code mapping and data from the National Grid to work out where in regional areas it would be necessary – but difficult – to implement public EV charge points.

Bonnet, an EV charging platform, is using its consumer-facing app to offer drivers access to private charge points in rural areas, when demand is high.

It creates financial opportunities for domestic charge point owners and increases the volume of reliable options for EV owners – all shown through the Bonnet app, which also handles payments, says Innovate UK.

Patrick Reich, co-founder of Bonnet, explained: “Electric charging provision is lacking in rural regions across the country, and we’re honoured to be collaborating with these partners to find solutions to these issues.

“Our payment and charge point information app can provide access to private charge points for public use across the UK and we already have thousands of public charge points on board. Innovative solutions need to be developed to combat drivers’ EV charging anxiety, especially in tourist hotspot regions across the country.

“This exciting project will be a step towards future proofing the electrification of the UK’s roads and we hope to encourage further change.”

Following the trial period (ending March 2022), the partners hope to propose the new business model to other rural councils in the UK.  By Graham Hill thanks to Fleet News

Drivers of Audi e-tron models manufactured between 2019 and 2020 can unlock an additional 12 miles of range with a free software update.

The upgrade is applicable to 55 Quattro variants, built between September 2018 and November 2019, of which there are 1,655 in the UK.

It can be installed at an Audi service centre.

The update expands the usable capacity of the car’s 95kWh battery to to 86kWh and optimises the control of the front electric motor.

In normal driving mode, the motor attached to the rear axle is responsible for propulsion. For improved efficiency, the front electric motor is now almost completely disconnected and powered off – and only when more power is needed do both motors come into play.

The update also improves cooling. The thermal management system, which consists of four separate circuits, regulates the temperature of the high-voltage components more efficiently. Modifying the control system made it possible to reduce the volume flow rates in the coolant circuit, thus reducing energy consumption.

The cooling system is the basis for fast DC charging, long battery life, and consistent driving performance, even under high loads.

“At Audi, we deliver progress through technology – and there’s no clearer demonstration of that than the free software and range update we’ve just launched for our existing e-tron 55 quattro customers,” said Andrew Doyle, director of Audi UK.

“As we shift our focus to the world of electric vehicles, we’re channelling our pioneering spirit and world-renowned technological expertise into the reinvention of our company as a leading light in the field of sustainable mobility.” By Graham Hill thanks to Fleet News

All motorway drivers will benefit from competition on pricing for electric vehicle charging at motorway services after exclusive agreements were ruled out as part of Competition and Markets Authority (CMA) investigation.

Gridserve, which acquired the Electric Highway from Ecotricity in June, has offered legally-binding assurances, known as commitments, to the CMA.

It says that it will not enforce exclusive rights in contracts with Extra, MOTO or Roadchef, after 2026, which currently cover around two-thirds of motorway service stations.

In doing so, Gridserve has committed to reducing the length of the exclusive rights in the current contracts with MOTO by around two years and Roadchef by around four years (the contract with the third operator, Extra, is due to end in 2026).

Furthermore it says it will not enforce exclusive rights at any Extra, MOTO or Roadchef sites that have been granted funding under the UK government’s Rapid Charging Fund (RCF).

This means that, where funding has been granted, competitor charge point operators will be able to install charge points regardless of the exclusive element of the Electric Highway’s contracts.

Each of the motorway service station operators – Extra, MOTO and Roadchef – and Gridserve have also offered commitments not to take any action that would undermine the above commitments.

Andrea Coscelli, CMA chief executive, said: “One of the biggest stumbling blocks to getting people to switch to electric cars is the fear that they won’t be able to travel from A to B without running out of charge.

“Millions of people make a pitstop for fuel at motorway service stations every day, so it’s crucial that people can trust that electric charge points will do the same job.

“Healthy competition is key to ensuring that drivers have a greater choice of charge points where they need them, and for a fair price.”

The CMA believes that opening up competition on motorways, while ensuring the sector has greater investment, is the right direction of travel – and good news for current drivers of electric cars and for people thinking of buying one.

“We’d now like to hear from businesses and drivers themselves on these proposed commitments,” added Coscelli.

In July, the CMA launched a competition investigation into the Electric Highway’s contracts with MOTO, Roadchef and Extra, alongside publishing the findings of its market study into the electric vehicle charging sector.

The CMA’s investigation examined the Electric Highway’s long-term, exclusive contracts with Extra, MOTO and Roadchef for the motorway service stations they operate.

In particular, it was concerned that provisions in those contracts granting exclusivity to the Electric Highway may be: preventing competitor charge point operators from operating at motorway service areas; could impede the successful roll-out of the Government’s anticipated RCF; and may result in drivers losing out on competitive prices and reliable charge points as a result of a lack of competition at motorway service areas.

The CMA believes that the commitments offered by Gridserve will address its competition concerns and open up competition in the market ahead of the 2030 ban on the sale of new petrol and diesel cars.

Significant new investments are due to be made by Gridserve ahead of expected demand between 2021 and 2025. By Graham Hill thanks to Fleet News

Mercedes-Benz is facing fresh allegations of using illegal defeat devices to cheat emissions tests, this time affecting its Euro 6 compliant six-cylinder 3.0-litre BlueTec engine.

Deutsche Umwelthilfe (Environmental Action Germany) has published a report identifying eight previously unknown defeat devices in certain Mercedes E-Class E350 diesel models.

In DUH’s view, these defeat devices result in nitrogen oxide emissions on the road being up to 500% above the legally prescribed limit.

Jürgen Resch, DUH’s national director, said: “It shows us for the first time how the company succeeds in complying with the legal limits in the test laboratory, while literally flooding our cities with harmful nitrogen oxides during real road use.

“The manipulation of the exhaust gas purification is not carried out because it is necessary for physical reasons or for the purpose of engine protection. The reason is as simple as it is cynical: it is about maximising profits at the expense of the environment and the health of city residents.”

The DUH tested a 2016 Mercedes E350 CDI Estate and found evidence of multiple ‘defeat devices’. It said the devices activate in driving situations that are common in road use conditions and stated that even under normal driving conditions, at least one defeat device almost always actively prevents the improvement of emissions

Three of the defeat devices identified by the DUH are said to depend on an “ageing factor” that reduces the amount of Adblue used as the vehicle’s milage increases. The report stated: “There is no plausible physical reason for the existence of any of them.”

The German Federal Motor Transport Authority (KBA) said it sees no evidence of previously unknown defeat devices at Mercedes-Benz in the DUH report.

“In the report, eight defeat devices of the relevant model with the OM 642 diesel engine are named. We are aware of these,” said a KBA spokesman on Friday. They have already been checked and found to be “not inadmissible”.

The KBA had already demanded a software update for the model under investigation in the DUH report. The defeat devices were removed in the updated software and the nitrogen oxide emissions were subsequently also below the legal limit value during road testing.

Mercedes is among a number of car makers facing legal action for emissions misrepresentation.

The DUH report suggests that other Mercedes vehicles with comparable engines and technologies contain comparable illegal defeat devices.

Mercedes-Benz told Car magazine: “The outlined calibrations are known. In our view, these are not to be assessed as illegal defeat devices in the interaction and overall context of the highly complex emission control system.

“The vast majority of rulings in German regional courts and higher regional courts continue to be in Daimler’s favour: In approximately 95%of cases, the courts rule in favour of the company.

“At the regional court level, there are more than 15,500 decisions dismissing lawsuits in favour of the company; in only about 900 cases was the decision against the company.

“There are now around 900 decisions in our favour at the higher regional courts, and only three decisions against us.

“The German Federal Court of Justice (BGH) has also confirmed key points of Daimler AG’s legal opinion in several decisions.”  By Graham Hill thanks to Fleet News

Transport academics and specialists have been queueing up in recent months to publicise their conversion to the idea that some form of road pricing or travel taxation to replace our current system of fuel duty and vehicle excise is not only desirable, but inevitable.

Increasingly, as the Tony Blair Institute for Global Change has said, doing nothing is now not a viable option, economically or politically – and perhaps even socially…but the road to an acceptable new equilibrium is uncharted and full of potholes.

It’s been widely observed that Government has to find a way of filling the £40bn+ gap in revenues from the current system of taxing motoring. It’s clear, too, that fuel duty and road tax (VED) are blunt tools that haven’t been able to deal with the real social costs of driving, from emissions to congestion.

Without other action to tackle car use, the lower cost of running EVs is likely to mean greater vehicle use with associated congestion and space occupation currently blighting many cities.

The recent Oxford CREDS report highlighted that we’re not going to be able to meet net zero targets without reducing car use in addition to transforming the technology we use to power those cars. (Some policymakers are already committed to change; Scotland aims to cut national car mileage 20% by 2030 while London is targeting 80% of journeys to be non-car by 2041.)

As Zemo’s lifecycle work shows, tailpipe emissions are only part of the story. The manufacture and disposal of vehicles and creating the capacity to supply energy to them all have an emissions impact.

As in many areas of life, for transport, efficiency must be a main focus of any new approach.

Road pricing has a back-story, of course, and as a label carries a great deal of baggage, so we’ll need to communicate much more effectively than in the past why it’s needed now; how proven (GPS and associated) technology is now commonplace, and how its introduction can be fair, reduce traffic congestion and accelerate a necessary transition to the cleanest, most efficient (and, perhaps, smaller) vehicles (some of which will still be cars, of course).

Importantly, the public is much more aware that we’re facing a “triple whammy” of emergencies in climate, air quality and congestion. But, because of the collective memory of the terms ‘road pricing’ and ‘road user charging’, perhaps we need a new term to describe the benefits a new approach could bring in terms of climate, air pollution and space.

More and more people are arguing that the time for road pricing has arrived. They say it has the potential to influence how, when and where we travel.

It could help to promote active travel choices, speed the introduction of EVs and other zero/low emission vehicles and provide policymakers with an effective lever to manage congestion.

It will have to be fair and not discriminate against those with fewer resources and limited travel choices. And it must be clearly understood if it’s to be accepted and effective.

As the Institute for Global Change says, the transition from our current system of vehicle taxation is under way whether we like it or not.

The transition offers us a huge opportunity to rethink our relationship with our cars and the incentives we put around their use.  By Graham Hill thanks to Fleet News

Independent forecourt operator, Motor Fuel Group (MFG), has opened its first all-electric vehicle (EV) charging station in Stretford, Manchester.

With support from its power infrastructure partner Energy Assets Networks (EAN), the site comprises eight 150kW ultra-fast charging points, which enable battery recharge in 20-40 minutes, along with retail convenience store, food to go, restroom and vehicle valeting facilities.

EAN said it has developed a common connections specification for EV charging networks that enables operators such as MFG to build their country-wide presence more efficiently.

Alan Hutton, strategic network planning director at MFG, said: “Opening our first all-EV charging station is a significant milestone for MFG, as we electrify our network across the UK.

“We have built a strong commercial partnership with EAN, founded on fast response and a ‘can-do’ attitude.

“As we roll out our dual-fuel strategy, they continue to play a key role in helping MFG electrify our locations which already serve millions of customers every week.”

EAN said it provides technical and legal expertise alongside asset values to help advance progress on Britain’s nationwide EV charging infrastructure.

Symon Gray, head of networks at EAN, added: “Electric vehicle ownership is on a rapid upward curve, reflecting both consumer demand for lower carbon technologies and growing confidence in charging network availability resulting from investment in services by leading operators such as MFG.

“We are delighted to be playing our part in creating a more sustainable approach to private mobility.”  By Graham Hill thanks to Fleet News

Windsor, Swindon and Stockport have the least number of rapid chargers per electric cars, according to analysis of official statistics by the Liberal Democrats.

The research showed electric car drivers in these areas are most likely to be stranded by slower charging points, taking at least 13 hours to charge a Nissan Leaf – whereas rapid chargers take 30 minutes.

In the local authority area of Windsor and Maidenhead, there are 1,474 electric cars registered in the area for every rapid charging point.

In Stockport, there are 16,568 registered electric cars, sharing just 16 rapid charging points.

372 new rapid electric vehicle (EV) chargers were installed within the last three months across the UK, as part of 1,553 new chargers installed.

The statistics reveal that less than one in five (19%) of all EV charging points in the UK are rapid chargers, whereas nearly 6,000 public charging points fall into the slow bracket (3kW-5kW).

The Government cut the plug-in car grant by £500, earlier this year.

The Liberal Democrats are calling for VAT cuts for cheaper priced EVs from 20% to 5% as well as increased in investment in EV charging points, particularly in rural areas.

Sarah Olney MP, Liberal Democrat spokesperson for transport, said: “Too many electric car owners face the anxiety of being marooned in a car park for hours on end because the Government is installing the wrong kind of charging points.

“The Government needs to get on with it now or risk a new wave of electric car owners becoming stranded, or worse still, going back to diesel.

“For all the big talk we have heard from the Government at COP26 on electric cars, the reality of their lack of investment shows a completely different picture.

“Instead of vague words, Liberal Democrats are calling for a cut in VAT on the lowest cost electric vehicles and a massive expansion of rapid chargers, particularly in rural areas.”

A freedom of information (FOI) request has revealed that 52% of UK councils made no investment in EV charging infrastructure, last year.

They are also calling for the Government to replace its own current vehicle fleet with ultra-low emission vehicles by 2022, and encourage the rest of the public sector, including local authorities and the NHS, to set their own targets. By Graham Hill thanks to Fleet News