Automated and Electric Vehicles Bill

(Limited Text - Ministerial Extracts only)

2nd reading (Hansard): House of Lords
Tuesday 20th February 2018 Lords Chamber

Moved by

[Baroness Sugg]

That the Bill be now read a second time.

[The Parliamentary Under-Secretary of State, Department for Transport (Baroness Sugg) (Con)]

My Lords, as announced in the Industrial Strategy last year, automated and electric vehicle technology forms an important part of the “future of mobility” grand challenge. This grand challenge sets out the ambition to create a long-term, strategic dialogue and partnership between government and industry, and to support sectors that can drive growth in the future. The Bill creates a framework to support automated and electric vehicle technology as it continues to develop and becomes more commonplace in our lives. It will lay the insurance framework as we prepare for fully automated vehicles on our roads, and provides for infrastructure that is easy to use for electric vehicle owners. Along with electrification, automation will make profound changes to our future vehicles and mobility.

First, on automated vehicles, it is over 85 years since the UK first introduced compulsory motor insurance for drivers on British roads to protect victims of collisions involving motor vehicles. The advent of a motor insurance framework in the Road Traffic Act 1930 revolutionised the car industry, enabling the mainstream sale of vehicles and changing the way people travelled throughout the country. Today, we face another revolutionary change in how we travel by road, thanks to innovative advances in computing and sensor technology. Vehicle manufacturers are already delivering advanced driver-assistance systems, and in the near future we will see the arrival of vehicles capable of safely driving themselves, at least in some circumstances or situations.

Noble Lords may recall our debate in December on last year’s report Connected and Autonomous Vehicles: The Future? from the Lords Science and Technology Committee, which highlighted how automated vehicles could present an enormous opportunity for the UK, flagged some of the challenges and made recommendations to government. I thank the committee, led by my noble friend Lord Selborne, for the helpful and insightful contributions to this exciting field of automotive technology, and I look forward to this discussion continuing through the passage of the Bill.

The benefits of this new technology, for both mobility and wider society, have huge potential. The public could have their lives transformed for the better by the introduction of new and innovative mobility solutions. This could be particularly transformative for those who cannot currently drive: for instance, the elderly and people with disabilities that impair them from easily accessing different transport modes. Automated vehicles also have the potential to improve road safety by reducing the influence of human error. In 2016, human error was involved in over 85% of all reported UK road incidents. By automating the driving task, human lives could be saved on our roads.

Along with opportunities, there are many challenges in the area of automated vehicles, not least ethical questions and public acceptance of this technology. The Government are taking a number of steps to address these wider issues, including carrying out a three-year project with the Law Commission to set out proposals for a long-term regulatory framework for self-driving vehicles and investing in public demonstrations of these vehicles. The Bill that we are discussing today focuses on just a few elements of the Government’s work in this area.

To ensure the safe arrival of automated vehicles, we will need a compulsory motor insurance framework that is fit for purpose to support consumers and businesses involved in accidents. The Bill provides that framework. Currently, as the driver’s use of the vehicle, rather than the vehicle itself, is insured, collisions involving automated vehicles that occur when the driver is legitimately disengaged from the driving task may not be covered. Having consulted widely and worked closely with parliamentary colleagues, the automotive industry and the insurance industry, the Government are creating a new compulsory insurance framework within the Bill that covers motorists both when they are driving and when the driver has legitimately handed control to the vehicle. This framework will place a first-instance liability on insurers so that they can pay out to victims and, where they can, recover costs from the liable party.

We will ensure that victims continue to have quick and fair access to compensation by taking steps to align the way that consumers can buy insurance to the way they do now. As the Bill has progressed, we have been reassured of this approach by the support offered by both the insurance and the vehicle manufacturing industries. James Dalton, director of general insurance policy at the Association of British Insurers, has said:

“We support the approach the Government has taken in the Bill, as this will give the industry time to prepare for the commercial rollout of fully automated driving technology”.


As I said, these measures are part of a broader programme to ensure that automated technology is developed here and that, once ready, we are prepared to see it deployed on our roads.

While we prepare for the advent of fully automated vehicle technology, the Bill also seeks to encourage the use of electric vehicles by expanding and improving the network of charge points and hydrogen refuelling stations for plug-in and fuel cell electric vehicles. It is this Government’s ambition that by 2050 almost every car and van will be zero-emission. This commitment to zero-emission vehicles is technology neutral and should be industry-led but the Government have an important role to play. We are acting now to ensure that the right infrastructure is available right across the UK to meet the needs of current and future electric vehicle drivers. More electric vehicles on our roads will reduce pollution and improve local air quality, as well as deliver economic benefits. One in five battery electric cars sold in Europe in 2016 was made in the UK.

As numbers on our roads increase, owners need to be able to drive their vehicles and have confidence that they will be able to easily locate and conveniently access public charging infrastructure if they need to. We are investing nearly £1.5 billion between April 2015 and March 2021 to boost the number of electric vehicles on UK roads, and the Bill is a key enabler in delivering the infrastructure to support this.

The measures in the Bill will give the Government powers to make it easier for electric vehicle owners to charge their vehicles. To improve the consumer experience of using public charge points, the Bill includes the power to mandate a common method of payment and ensure that they are equipped with certain types of physical connector. This will give consumers confidence that, when they arrive at a public charge point, they will be able to plug in and pay conveniently.

The Bill also includes powers to mandate the provision of open data on the location and availability of charge points to a common standard. This will help drivers find charge points quickly and easily when they need to. To ensure the provision of sufficient infrastructure at strategic sites and overcome fears of range anxiety for anyone undertaking longer journeys, the Bill provides powers to require motorway service areas and large fuel retailers to provide charge points and hydrogen refuelling facilities.

The Bill also provides powers to require charge points in the future to be “smart”—that is, they will be able to receive, understand and respond to signals sent by third parties, such as National Grid. The Bill also provides a power to ensure that data transmitted from charge points to specified bodies such as National Grid is not stopped or disrupted so that energy demand can be accurately mapped and addressed. These requirements will enable the flexible management of electricity supply and demand and the ability for electricity networks to balance themselves at times of peak demand. This will also make sure that consumers can take advantage of managing their own charging patterns—for example, charging up when electricity is cheapest and potentially even selling electricity back to the grid at times of peak demand.

I fully acknowledge that with both automated and electric vehicles, there are many areas that the Government need to focus on, take action on and invest in. The Bill addresses just some of these issues but, taken together, the measures in it demonstrate the readiness of the UK to be part of this latest transport revolution to deliver easier, cleaner and safer journeys for everyone. The Bill is designed to put the UK on the front foot, ready to take advantage of the social and economic benefits these technologies will bring. I beg to move.