Utility Week

UTILITY WEEK | 24TH - 30TH JANUARY 2020 | 27 Operations & Assets Exempting EVs from VAT would boost sales, AA survey finds Energy sector experts have told Utility Week they support the AA's call to remove VAT from the price of an EV. It follows the publication of a poll of AA members, which found 60 per cent would be more likely to make the switch from pet- rol or diesel if the tax was cut. The organisation has also called for the removal of premium car tax on EVs with a list price in excess of £40,000. The AA's poll of 17,500 members found 40 per cent also believe the sales tax should be removed from leasing prices. More than a quarter (28 per cent) of low-income households said removing VAT from the purchase price would be "very influential" in helping them switch to EVs. Tom Pakenham, director of EVs at Ovo Energy, told Utility Week: "Introducing zero VAT for EVs could be an impactful part of a package of policies to increase the supply and uptake of EVs, as we have seen in other markets around the world. "Electric cars will play a critical role in increasing the amount of renewables on the grid, so policies such as VAT reduction should be accompanied by the introduction of effective market signals to reward customers for allowing their electric cars to be used as a source of flexibility." However, Mark Lashbrook, technical manager for innovation at M&I Materials, owner of electric vehicle coolant specialist MIVOLT, said: "While cost is important, it isn't the only concern. Range anxiety is fre- quently mentioned by consumers as a rea- son not to get behind the wheel of an EV. "The UK continues to deploy public charge points, but these tend to be slower recharging options, so we can no longer drive up, refuel and drive away in the space of a ten minute window." 4 Winning consumers' trust and confidence Proposal 14 An ongoing and proactive campaign must be undertaken to promote the benefits of smart charging to the public. Proposal 15 Government should fund the provision of an independent, tailored advice and information service on smart charging and EVs, to be estab- lished by 2022. Proposal 16 Industry must develop and adopt common, principle-based complaint handling standards by the end of 2021 to ensure that consumers are transferred seamlessly (between market bounda- ries if necessary) to resolve their problemd, regardless of who they have initial contact with. Proposal 17 Government or Ofgem should undertake a full review of protections for EV users by the end of 2021. Proposal 18 Industry to implement best practice standards for the information provision for smart charging and EV services at the point of sale by 2021. 3 Utilising and protecting data for better consumer outcomes Proposal 11 There must be comprehensive and open data- sharing arrangements, in alignment with Energy Data Taskforce recommendations. Proposal 12 To facilitate the availability of open and accurate charge point data, public charge point operators, owners and market actors must make data on public charge point location, type, status, capac- ity, price and availability consistent and openly available for EV drivers by 2021. A single asset register, aligned with the Energy Data Taskforce Asset Registration Strategy, must include all fixed charge points (private, public, workplace, etc) and should include all relevant data to ensure optimum planning and operation of the electricity networks. Proposal 13 The EV Energy Taskforce proposes that Ofgem and government introduce a data access and privacy framework for the EV sector to ensure that consumers have full control over their data by 2021. Consumers should be made aware of all data access issues at the point of sale of all EV products and services as well as their powers to control and delete this data. 2 Rewarding consumers for charging smartly Proposal 8 Require private EV charge points to charge smartly by default, thus making smart charging participation an opt out function by 2021. Proposal 9 The government and Ofgem must ensure that existing markets for flexibility are made acces- sible for EV users. They must also support the development of new coordinated and accessible markets for flexibility to compete with traditional networks and wider whole electricity system solutions by 2023 at the latest. Markets and price signals should maximise the opportunities for consumers to use their flexible resources, including EVs, and sufficiently reward them for offering demand flexibility services that support optimised network operations and investment, emission reductions and system efficiency. Proposal 10 The government and Ofgem should ensure from 2020, possibly through a process triggered by a charge point installation, that the number of con- sumers who have a smart meter installed before or alongside the installation of a charge point is maximised, and that consumers have been properly informed of the potential benefits. 5 Developing and maintaining the charging infrastructure consumers need Proposal 19 The government and Ofgem, as a matter of urgency, need to facilitate planning and coordi- nation of the rollout of EV and electricity network infrastructure. This needs to be aligned nation- ally and to wider local area energy, transport and emission reduction plans and be implemented and used through the RIIO2 price control. Proposal 20 Ofgem should ensure the RIIO2 price control supports well-justified anticipatory network investment, including LV monitoring, that benefits consumers and enables efficient and coordinated deployment of the network infra- structure necessary for EV charging. Proposal 21 The government should provide support to all public bodies and private organisations con- cerned with public EV charging infrastructure. This should include sharing best practice and providing specific guidance on procurement for effective delivery, ongoing operation and main- tenance of public charging by the end of 2021.

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