Electric Vehicles Archives

Electric vehicles and the new smart charging regulations

Posted on 5th July 20225th July 2022 by Sophie Wyatt

More and more people across the UK are initiating the switch to EVs, and to help encourage this the government are reinforcing the National Grid’s resources. This will ensure that the grid can withstand an increased demand for electricity. But many people are unaware of EV Regulations, and how they are currently changing.

New UK laws will require charge points to respond to periods of high demand by slowing or delaying charging sessions. These new rules will leave drivers and vehicle owners in charge, but steer them towards a future that is significantly more sustainable.

But how will these regulations change the world of EVs, and how will this impact UK drivers and businesses?

The new regulations

The Electric Vehicles (Smart Charge Points) Regulations 2021 requires all EV chargers that are sold for domestic or workplace use across the UK, to be pre-configured. This is to encourage smarter charging behaviours amongst drivers and vehicle owners.

Chargers sold after June 30th 2022 must now have smart functionality. This will encourage drivers to charge their EVs at a time when there is less demand on the electricity grid, or when there is an abundance of renewable energy available. This should reduce the strain on the National Grid.

These functions will come pre-configured on the charger, but owners remain in control with the ability to adjust chargers to their preferred settings. The Department for Transport will review progress after the launch, informing a second phase of regulations due by the end of 2025. Later in the year they will also introduce new cyber security requirements to further protect the charger and user data.

What does this mean for you?

With twice as many plug-in hybrid and electric vehicles on our roads in June 2021 compared to the end of 2019, it’s clear that the country needs to adjust to the growing popularity of EVs. But many may worry about how these adjustments will affect them in the future.

While the new regulations will bring changes for charging plans, peak-time charging will not be banned. Owners will have the option to override the settings of their charger if the default scheduling does not work for them, but for the majority of people, charging their vehicles off-peak is the smartest and most cost-efficient option.

And if you already have a charger installed at home, you do not need to worry about upgrading it. As long as it was bought before the 1^st July 2022, EV owners will not have to upgrade their charging device.

Where does EIC come in?

It is becoming clearer each day that action must now be taken to protect our environment. And with the government working to make significant movements towards a sustainable future, it is clear that these green plans are being made a priority.

At EIC, we are dedicated to helping our clients make the most of the green energy alternatives on offer. For us to help ourselves, we must help those around us as well. And our green energy solutions, compliance advice, and carbon management plans can be tailored to your business’s needs.

We can also plan and install charge points across your sites. In addition, we also offer advice on converting your current vehicle fleets to electric.

Get in touch today to hear how EIC can assist you in your journey to net zero.

The UK Transport Decarbonisation Plan: EIC responds

Posted on 28th July 20214th August 2021 by Evelyn Chapman

The long awaited UK Transport Decarbonisation Plan, published 14 July 2021, sets out a net zero timeline for all domestic transport in the UK. The plan brings forward the ban on petrol and diesel vehicles to 2030. And aims to decarbonise the aviation sector by 2050, among other things.

How will the plan impact the country?

Transforming the transport sector is essential for achieving net zero emissions in the UK. And could greatly benefit our cities and towns. While some are saying the plan is not progressive enough, Transport Secretary Grant Shapps says it is “just the start”.

“Transport is not just how you get around. It is something that fundamentally shapes our towns, cities, and countryside, our living standards and our health. It can shape all those things for good, or for bad. Decarbonisation is not just some technocratic process. It’s about how we make sure that transport shapes quality of life and the economy in ways that are good.” Shapps said.

“It’s not about stopping people doing things: it’s about doing the same things differently. We will still fly on holiday, but in more efficient aircraft, using sustainable fuel. We will still drive, but increasingly in zero-emission cars.”

Highlights of the plan include:

End the sale of new petrol and diesel cars and vans from 2030.
The government’s own fleet of vehicles will transition to electric vehicles from 2027. As an interim step, 25% of the fleet will also change to ultra-low emissions vehicles by December 2022.
Petrol with up to 10% ethanol (E10) blend will be introduced as standard petrol from September 2021 in the UK.
End the sale of new petrol and diesel heavy goods vehicles (HBVs) and buses by 2040 (subject to consultation).
Plan to bring aviation sector’s emissions to net zero by 2050.
Plan to commit to the 2040 target for domestic aviation and airport buildings and operations in England

EIC’s expert analysis

Victoria Pollard, a Carbon Compliance Manager at EIC, weighs in:

The changes required to transform the transport sector go beyond switching your domestic vehicle to a plug in electric. The shift to low carbon transportation will require a comprehensive review of our public and commercial transport and radical infrastructural change. The transport decarbonisation plan is a progressive stride in this direction.

A ‘modal shift’ is being seen as the most cost effective choice to begin this effort. A ‘modal shift’ essentially means driving gradual changes from one form of transportation to another. Making petrol more expensive, for example, as a way to encourage the use of public transport. This method can be an effective way to change consumer perception, raising questions like, is there a need for multiple cars per domestic dwelling, or even any cars?

But is a modal shift really viable? There are many options for public transport or zero emission transport out there, but this is usually perceived as more of an inner city option. And while the UK’s size has always afforded easy commuting to various parts of the country, this would not be an easy transition for those living in more rural areas.

This concept also relies on public transportation being able to rapidly change from traditional petrol/diesel to an electrified network, which could prove challenging. Commercial vehicles and long distance public transport like coaches are unsure of how and when they will be able to achieve decarbonised transport options. Electric batteries are not yet seen as an option for these sized vehicles as their charge times are currently commercially unviable.

One thing is clear, the private and public sectors need to work as one to ensure the whole transportation spectrum is considered in the decarbonisation plan.

To learn more about how EIC can help you on your path to net zero, contact us today.

Budget 2020

Posted on 13th March 2020 by Amy Coniff

The new Chancellor, Rishi Sunak, has delivered the first Budget since the UK set its 2050 Net Zero target last year. The previous Chancellor, Sajid Javid, had promised a “green” Budget, however the current health crisis caused by the spread of COVID-19 had cast doubts on how much time Mr. Sunak would spend on energy and the environment.

Below, we highlight key announcements:

Carbon reduction schemes

The government announced a Carbon Capture and Storage (CCS) Infrastructure Fund to establish CCS in at least two UK sites. One by the mid-2020s and a second by 2030. CCS is a technology that involves the capturing of carbon dioxide emissions created by fossil fuels during energy generation. The CO₂ can then be transported and stored safely. There are currently no operational commercial CCS facilities in the UK to date. However, there are a small number of pilot projects currently in development.

The Chancellor also announced a Green Gas Levy, designed to help fund the use of greener fuels. This is in effort to encourage more environmentally-friendly ways of heating buildings through a new support scheme for biomethane. In addition, the Budget stated that the government will increase the Climate Change Levy (CCL) that businesses pay on gas in 2022/23 and 2023/24 (whilst freezing the rate on electricity). It will also reopen and extend the Climate Change Agreement (CCA) scheme by two years.

Further announcements saw the Renewable Heat Incentive (RHI) scheme extended for two years until March 2022. This is alongside a new allocation of flexible tariff guarantees to non-domestic RHI in March next year. The government said these efforts would “provide investment certainty for the larger and more cost-effective renewable heat projects”.

Electric vehicle infrastructure

Road transport is currently responsible for approximately one fifth of all UK emissions. To reduce this the government has announced investment in electric vehicle charging infrastructure with aims that “drivers are never more than 30 miles from a rapid charging station”. The government will invest £500 million over the next five years to support the rollout of a fast-charging network.

The government is still considering the long-term future of incentives for zero-emission vehicles alongside the 2040 phase-out date consultation. In the meantime, £403 million will be provided for the Plug-in Car Grant, extending it to 2022/23, with a further £129.5 million to extend the scheme to vans, taxis and motorcycles. In addition there will be an exemption of zero emission cars from the Vehicle Excise Duty (VED).

Natural environment

The Budget has announced a Nature for Climate Fund, which will invest £640 million in tree planting and peatland restoration across England, representing the coverage of an area greater than Birmingham over the next five years. Additionally, the announcement of the Nature Recovery Network Fund and the Natural Environment Impact Fund will each provide avenues for environmental restoration and sustainable development.

Future reading

In the build-up to the COP26 Climate Summit, to be hosted in Scotland later in the year, HM Treasury will publish two reviews. One into the economic costs and opportunities associated with reaching Net Zero and the other into the economics of biodiversity.

In summary

Reactions to the Budget have been a mixed bag. It’s been cited as simultaneously the greenest modern Budget to date and a missed opportunity regarding the larger climate picture. The government has announced a number of positive policies that will begin to pave the way for the Net Zero transition. However, the decision to freeze fuel duty for the tenth year in a row and investment of £27 billion into new roads will be regarded as counter-productive to ambitious targets.

Stay informed with EIC insights

Our Market Intelligence team keep a close eye on the energy markets and industry updates. For the timeliest updates you can find us on Twitter and LinkedIn.

UK Energy Policy in 2020

Posted on 19th December 20199th November 2020 by Amy Coniff

Following the results of the UK General Election, it will be the Conservative Party responsible for delivering the net zero target and a green economy. The Conservatives made positive pledges to invest in green jobs, low carbon infrastructure and investment in energy efficiency.

Their Manifesto promised that the first Budget in 2020 will prioritise the environment and contain investment in research & development, decarbonisation schemes, new flood defences, electric vehicle infrastructure and clean energy. The Budget date is to be confirmed, but will likely take place in early Spring.

White Paper

The Department for Business, Energy and Industrial Strategy (BEIS) intend to release an Energy White Paper, which is expected in Q1 2020. It will detail the country’s strategy to achieving net zero emissions by 2050.

Energy Secretary, Andrea Leadsom, has said that BEIS are currently evaluating a number of different approaches. This will include decisions on renewables, nuclear levels and the role of carbon capture, usage and storage.

The White Paper is expected to yield further policy indications on a range of energy and environmental issues that are currently unclear.

COP26

The 26th session of the Conference of the Parties (COP26) to the United Nations Framework Convention on Climate Change (UNFCCC) is scheduled to take place 9-19 November 2020 in Glasgow.

The UK will host the main COP summit, which will enable world leaders to discuss actions to tackle climate change and serve as a spotlight on how far the government’s climate policy decisions have come. Claire Perry, the previous Minister of State for Energy and Clean Growth, will preside as the UK nominated president for the event.

Second Balancing Services Charges Taskforce

Ofgem formed the first Balancing Services Charges Taskforce, in collaboration with the Electricity System Operator, back in November 2018. The main goal of the Taskforce was to investigate the future direction of Balancing Services Use of System (BSUoS) charges.

The Taskforce found that the BSUoS charge does not currently provide any useful forward-looking signal. This makes the charges hard to forecast, reducing the influence of the charge on user behaviour.

With this information, the Taskforce assessed whether individual elements of BSUoS have the potential for being charged more cost-effectively and hence could provide a forward-looking signal. However, whilst it was concluded there were theoretical advantages to options suggested, it remained that the implementation would not or could not provide a cost-reflective and forward-looking signal that would drive efficient and effective market behaviour.

The first Taskforce concluded that it was not feasible to charge any of the BSUoS components in a more cost-reflective and forward-looking manner that would effectively influence behaviour to help the system and/or lower costs to customers. The group recommended that all costs included with BSUoS should be treated on a cost-recover basis.

Taskforce key deliverables

The new Taskforce will aim to assess who should pay BSUoS charges, how these charges should be recovered and how principles from the Targeted Charging Review can be applied. In order to achieve this the Taskforce has compiled five deliverables:

Consideration and assessment based recommendation as to who should pay balancing services charges
Investigation and recommendation for recovering balancing services charges, including collection methodology and frequency
Produce interim report providing detailed reasoning and any relevant analysis behind the initial conclusions
Consult on the interim report providing an opportunity for stakeholder comment
Issue a final report including consideration of stakeholder consultation responses providing a final recommendation on who should pay, the design of balancing services charges and potential timescales for implementation

The final report, containing the recommendations to Ofgem, is scheduled to be published in June 2020.

Electric Vehicle Smart Charging consultation response

On 15 July 2019 the Government published a consultation on Electric Vehicle Smart Charging. This was to seek views on the outline of the current approach and objectives for the implementation of smart charging systems for electric vehicles (EVs).

The Government believes that the encouragement of consumer uptake and innovation is necessary to meet future targets. To this effect, the Government’s overall aim is to maximise the use of smart charging technologies to benefit both consumers and the electricity system, whilst supporting the transition to EVs.

The consultation states that without government intervention, it is unlikely that smart charging will be taken up at the rate required to achieve the full potential benefits. This could lead to the risk of varying standards and inadequate protections for the grid and consumers.

The long and short-term plans for smart charging

The Government provided detail on both short and long-term plans for smart charging. The approach for Phase One of the project would see new non-public charge points required to have smart functionality, compliant with the British Standards Institution.

Phase Two is a work in progress, as the Government seeks views on what the long-term approach for operational requirements should be, with some potential options. The consultation proposes that a decision should be made between 2020 and 2022.

A potential response to the consultation is expected in 2020 and would dictate the rate and method of rollout of new EV infrastructure across the country in the future.

Review of Default Tariff Cap

The initial default tariff cap came in effect on 1 January 2019. It was designed as a temporary cap on standard variable tariffs and fixed-term default tariffs. In accordance with the licence requirements, Ofgem run an update progress twice a year. This is so the default tariff cap reflects changes in the cost of supplying energy.

On 7 August 2019, Ofgem updated the cap levels to come into effect for the third charge restriction from 1 October 2019 to 31 March 2020. A fall in wholesale costs saw the level of the cap reduce from £1,254 to £1,179 for this period.

The default tariff cap is intended to be a temporary measure, with an upcoming review next year on whether it is still fit for purpose. The cap will remain in place until at least the end of 2020. The government will be able to choose whether to extend the cap beyond this, up to a maximum of 2023.

Dermot Nolan, Chief Executive of Ofgem, said, “The price cap requires suppliers to pass on any savings to customers when their cost to supply electricity and gas falls.

He added, “This means the energy bills of around 15 million customers on default deals or pre-payment meters will fall this winter to reflect the reduction in the cost of the wholesale energy. Households can cut their bills further in time for winter, and we would encourage all customers to shop around to get themselves the best deal possible for their energy.”

CCC to publish Sixth Carbon Budget

The Committee on Climate Change (CCC) is scheduled to publish its recommendation on the level of the Sixth Carbon Budget in September 2020.

The Sixth Carbon Budget, required under the Climate Change Act, will provide ministers with advice on the volume of greenhouse gases the UK can emit during the period 2033-2037. The Budget will set the path to the UK’s net-zero emissions target in 2050, as the first carbon budget to be set into law following that commitment.

CCC Chairman, Lord Deben, advised the Government of the Committee’s intention in a letter to the Exchequer Secretary to the Treasury, Simon Clarke MP.

The letter sets out the Committee’s expectations for the Treasury’s planned review of how the costs of the transition to a net-zero economy by 2050 can be funded and distributed fairly.

The Committee called on the Treasury to conduct the review in its May 2019 advice to Government on setting a net-zero target for the UK. The Committee sees the review as crucial in ensuring a successful transition and recommend that the review is a key input to next year’s spending review and budget, and longer-term policy direction.

Lord Deben’s letter also recommends that the Treasury review develops a plan for funding decarbonisation and examines the distribution of costs for businesses, households and the Exchequer.

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Our Market Intelligence team keep a close eye on the energy markets and industry updates. For the timeliest updates, you can find us on Twitter and LinkedIn.