Labour cuts pink tape on EV charging factors by slashing set up prices by 95%
Labour says it has delivered on its promise to ‘cut red tape’ on public charging point installations by simplifying the application process for devices to be installed at the roadside.
By removing this administrative burden for businesses, the cost of formalising requests to erect new EV chargers will drop from as much as £1,000 to as little as £45.
Ministers promise it will also accelerate the installation process, meaning new devices can be fitted in just days rather than waiting months while seeking approval from councils.
This will ‘help to expand a reliable charging network for drivers across England,’ the Department for Transport said.
The news comes as studies and car registration data suggests drivers are becoming more open to transitioning to electric vehicles.
Rocketing fuel prices – triggered by Iran’s blocking of a major oil supply shipping route – has led to a fresh surge in searches for new and used EVs and a record number of new electric cars entering the road in March.
Labour has made legislative changes that will reduce the application cost for public charging point installations for operators from around £1,000 to as little as £45
The changes taking effect tomorrow (Friday 10 April) will come about as a result of amendments to the Traffic Management Permit Scheme [England] Regulations 2007.
The Government will remove the requirement for EV charging operators to undertake lengthy applications for ‘section 50 licences’ from local authorities, effectively speeding up the installation of new devices.
The hope is that it will unlock the expansion of the nation’s public charging infrastructure, which – according to latest industry figures collated by Zapmap – stands at 118,000 chargers.
The Government has committed to increasing the network to 300,000 devices by 2030, with £600million in new funding announced last year to speed up the roll out.
Labour hopes the changes will help to unlock demand for EVs, which is said to be accelerating as a result of rising fuel prices triggered by the war in Iran
Minsters hope growth in the charging network will breed new confidence in EVs and make them more attractive to a wider demographic of drivers.
Currently, around nine in ten electric car owners have driveways or access to off-street parking, according to government figures.
This means the vast majority of motorists with EVs are charging them at home – where they too benefit from cheaper domestic energy prices.
But the government understands that more needs to be done to make EV ownership more appealing to those without dedicated parking facilities where the live.
This includes the millions of people living in flats and terraced houses in cities and larger towns.
On 27 February, a landmark court ruling at a first-tier tribunal ruled that a 5 per cent reduced VAT rate – which is currently levied on domestic charging costs – should also be applied to public EV charging, not the 20 per cent standard rate.
Despite the ruling, ministers are yet to announce if they will reduce taxation on public charging.
In recent weeks, the transition to EVs is said to have gathered pace with more drivers considering making the leap to a battery-powered car to evade surging fuel prices caused by the ongoing conflict in the Middle East.
According to the RAC, the average price of a litre of petrol is 158.03p – some 25p (19 per cent) more than it was on 28 February, when the US and Israel launched their first attack on Iran.
Diesel prices have rocketed even faster, up from 142.4p at the end of February to 191.1p-a-litre today. That’s almost a 49p jump in just over a month.
Autotrader says that demand for new and used EVs on its website has increased by 28 per cent and 15 per cent respectively since the war broke out in late February.
On Wednesday, the Society of Motor Manufacturers and Traders (SMMT) confirmed that 86,120 new EVs entered Britain’s roads in March – the most in a single month since record began.
However, against a backdrop of increasing sales across all fuel types, EVs still only accounted for 22.6 per cent of registrations; well behind the Government’s mandated target of 28 per cent for the year.
Heidi Alexander, secretary of state for transport, said: ‘With global fuel price fluctuations, making the switch has never made more sense.’
Jarrod Birch, head of policy and public affairs at ChargeUK, said streamlining the process for charge point operators to apply for street works is a ‘very positive move’.
However, he said there remains a lot more for government to do if it wants to ‘fully back the businesses at the heart of the EV revolution’.
He told Daily Mail and This is Money: ‘Addressing the full cost burden for charge point operators, which is largely driven by energy and standing charges, is critical.
‘Tackling surging standing charges, equalising VAT with home charging and committing to stable policy through a robust ZEV [Zero Emission Vehicle] mandate are the highest priorities for the charging industry to invest even more quickly in infrastructure.’
