Thursday 17th May 2018
(6 years, 6 months ago)
Lords ChamberAutomated and Electric Vehicles Act 2018 View all Automated and Electric Vehicles Act 2018 Debates Read Hansard Text Amendment Paper: HL Bill 82-II Second marshalled list for Committee (PDF, 108KB) - (15 May 2018)
Lord Campbell-Savours (Lab)
My Lords, the noble Baroness, Lady Worthington, just referred to the issue that I wanted to raise and which I raised earlier in Committee. There will potentially be a substantial drop in revenue. It is important that the Bill goes a little bit further than it does in Clause 12, which refers to a,
“prescribed person or to persons of a prescribed description”.
Why can the Government not be a little more frank? We basically mean the excise authorities—they are the people who want this information. Ultimately, that is the way the tax will be raised, unless we go down the route of satellite observation of your vehicle running along the motorway counting up how many miles you have done and where you went, which might worry a lot of people in a world of arguments over privacy.
I hope the noble Baroness’s comments will be followed up by the Minister. The Government might be prepared to go a little further on Report than the wording in Clause 12 and be absolutely frank. This is how it is being read outside: “This is the way we intend to raise taxes”, against the argument, when it starts, of whether to use something like satellites. Could Ministers be a little more frank and give us an undertaking that they might reconsider that position and the wording in Clause 12(1) on Report?
Lord Young of Cookham (Con)
My Lords, I am grateful to all noble Lords for raising the importance of consultation prior to regulations being made using the powers covered by the Bill. It would of course be sensible, and indeed essential, for us to engage with a wide range of stakeholders to ensure that any regulations brought forward under the Bill are fair and proportionate while delivering the changes that will meet the needs of users and greatly improve the charging experience. It will be particularly important to consult those stakeholders that will be directly impacted by any of these regulations.
The Government have a set of good consultation principles—for example, that consultations should be targeted, clear and concise. They were published in 2016 and a copy was placed in the parliamentary Library. These principles were followed when consulting on primary legislation for the Bill and we will continue to follow them. They were updated in 2018 and can be accessed on the government website, GOV.UK.
Prior to introducing any regulations in this part of the Bill, we will engage with all appropriate stakeholders. This is already a requirement under Clause 16(3). Amendment 52, moved by the noble Lord, Lord Tunnicliffe, calls for consultation specifically with charge point operators and vehicle manufacturers. As we explained in the policy scoping notes, under Clause 9 the Government would consult widely with stakeholders on the issue of connection before introducing regulations. This consultation would of course include charge point manufacturers and operators, and vehicle manufacturers.
Amendment 67 in the name of the noble Lord, Lord Tunnicliffe, also seeks to require the Secretary of State to publish draft criteria and definitions of large fuel retailers and service area operators at least six months before making the regulation. Any regulations brought forward under Clause 10 would be informed by consultation with industry, including fuel retailers, motorway service area operators, EV infrastructure providers and operators, and EV manufacturers and drivers, a point insisted on by the noble Baroness, Lady Randerson. She made a valid point that those currently in the petrol retailing business will want to ensure that they have a future. Their business is basically supplying energy to motorists. They will need to react if motorists start using a different form of energy. It would be in their interests to move in this direction.
The noble Baroness, Lady Worthington, raised the point that this might have implications for the Treasury. I will not go there. She also mentioned the possibility of road pricing—another sensitive political issue. I am not going to go there either, but they were valid points.
As explained in the policy scoping notes, the purpose of the consultation would be to seek industry’s views on the definitions of large fuel retailers and service area operators and any criteria for the locations at which fuel retailers will have to make specified provision.
Lord Deben (Con)
Will that consultation include not just regulation but facilitation? Many providers collect their fuel by road and then dispense it. They have a serious problem connecting with the grid and fitting in with the electricity supply. I do not understand why the Government do not apply here the same arrangements as they applied in respect of telephonic connections, which did something about the problems of wayleaves.
Lord Young of Cookham
My noble friend is absolutely right. Some fuel retailers may be in remote locations where the necessary electricity supply is not immediately available. Therefore, it would not make sense to oblige them to have charge points if they could not get the power. We have taken that on board. When we consult, we will look specifically at the availability of power supply before deciding whether to make progress.
Clause 16(4) would require the Secretary of State to lay the draft regulations in Parliament and their approval by each House before they are made. I understand the intent of the amendment: to ensure there is enough time for stakeholders to consider and comment, and make their views known to parliamentarians, before the regulations are discussed in the House. However we believe that, given the commitment to full consultation and the use of the affirmative procedure, it is not necessary or proportionate to publish the regulations six months before they are made. There will be many opportunities to comment on what should be included in the regulations throughout the consultation, and a delay of six months from the final draft to a vote in Parliament could adversely affect the delivery of the policy. Regarding Amendment 68, I hope this also reassures the noble Baroness, Lady Randerson, of our commitment to consult fuel retailers about the appropriateness of regulations before they are introduced.
I turn to Amendment 87 and the important issue of data. The collection and use of data from charge points is increasingly important to those who help manage the electricity system. We will need carefully to consider how that data is used and how to ensure data privacy. We are already statutorily obliged to consult on the regulations through Clause 16(3). The consultation will cover the issues referred to in the amendments: who is responsible for collecting the data, how the data is shared, and any limitations on the use of such data. Therefore, we do not believe that a specific amendment on data is necessary. Data security and privacy are essential. Data would be anonymised and aggregated and it could be handled in a similar way to how smart meter data is treated. The noble Lord, Lord Campbell-Savours, suggested that one of the prescribed persons might be the Treasury, so that it could get this information in order to charge motorists. I do not think that is the intention, but I will take advice before I commit myself on it. It is an ingenious thought, which the Treasury may follow up now that the noble Lord has mentioned it.
Amendment 95 is proposed by the noble Baroness, Lady Randerson. She must have a very small carbon footprint if she generates through solar panels the power for her car. The amendment would require night-shift workers and households with solar panels to be taken into account for regulations under Clause 13, about smart charge points. I would hope that night-shift workers might be able to charge at work and therefore benefit from the lower rates, but off-peak is not only at night; lowest demand can now be in the afternoon because of solar power, so it could be the new off-peak—I understand that this happened for the first time in the UK in 2017. We will of course look to ensure that the introduction of smart charge points does not have adverse effects on any groups of consumers. However, we do not believe it is appropriate to specify, and implicitly prioritise, a small selection of people, however important, as the noble Baroness’s amendment seeks. I understand that it is important to take into account different groups of consumers, but as the clause is about the requirements for smart charge points rather than the pricing structures, I am not sure that it is the right place.
On smart charging pricing structures, I hope noble Lords will be reassured that the regulator for the electricity system, Ofgem, has an explicit responsibility to make the system fair for all energy consumers. Amendment 102 in the name of the noble Lord, Lord Tunnicliffe, would extend the consulting requirement for this part of the Bill to ensure that the Secretary of State included the National Grid, large fuel retailers and service area operators. I agree that it is important to consult widely and of course that includes such stakeholders, but we do not think it appropriate to specify in the Bill a small proportion of the organisations that should be consulted.
Amendment 103 in the name of the noble Baroness, Lady Randerson, is about requiring draft regulations in this part to be approved in both Houses of Parliament every time they provide or amend a definition in this Act. Clause 16(4) already requires the Secretary of State to do this for the first time regulations are laid, with exceptions for technical regulations under Clause 9(3) and Clause 13. This is a rapidly evolving market and may require the Government to act quickly. The initial regulations will be subject, quite rightly, to the affirmative procedure, but it may not be appropriate to extend this to every provision or amendment of a definition.
I am grateful to noble Lords for raising important issues. I hope they are reassured that we intend to fulfil existing duties in respect of secondary legislation, that we will consult widely and thoroughly before any regulations are brought forward, and that the statutory obligation to consultation in Clause 16(3) will ensure that we do so. I recognise the importance of proper parliamentary scrutiny when defining terms used in the Bill, as the Delegated Powers and Regulatory Reform Committee noted in its report. My noble friend is considering its recommendations and will respond to the committee before Report and copy this response to all noble Lords who have taken part in today’s debate. On that basis, I hope that the noble Lord might withdraw his amendment at this stage.
Lord Tunnicliffe
My Lords, I shall not delay the Committee unnecessarily. I will study the response with some care. I suspect that we will bring forward an amendment on Report unless the Minister does so for us, because there is something rather special about the timescales. The standard consultation is 12 weeks. The six months that we propose recognises the considerable work that will be required if a fuel retailer or service operator is caught unawares. Either such a provision is needed or the regulations have to be sensitive about time. I hope for a perhaps more in-depth response—I do not want to be rude—which recognises these timescales. Perhaps we can put that on record on Report, even if the Minister is unable to suggest some useful words to add to the Bill.
Before I withdraw the amendment, can I assume that when Amendment 53 is called, we will commence discussion on the original group without Amendment 51? I see nodding from the Whips; therefore, we are all on the same page. I beg leave to withdraw the amendment.
Lord Tunnicliffe
My Lords, as a generality I support the thrust of these amendments, but I worry about whether this is the right place for them. Clearly, there is a case for some overall strategic planning, and there is a need for it to happen everywhere. There is also a possibility that that may require some powers to be provided for TfL. But we are trespassing into dangerous waters, because we are getting into sovereignty—and there is no more delicate area in a sovereignty debate than between an area or regional authority and constituent members. I worry whether this Bill is the place to make such a profound move.
I am genuinely open-minded about whether we should press in this direction, but I join the noble Lord, Lord Tope, in urging the department to do all that it can between now and Report to get a negotiated settlement between the boroughs and TfL that, if necessary, we can put into the Bill.
The Parliamentary Under-Secretary of State, Department for Transport (Baroness Sugg) (Con)
My Lords, this is a wide-ranging group of amendments and I shall aim to address all the points raised, so I am afraid that I shall have quite a bit to say.
On permitted development rights and expansion, as the noble Baroness noted, it is already allowed through town and country planning, which allows permitted development rights for one electric vehicle charging point per parking space, public or private. The noble Baroness, Lady Worthington, mentioned specific restrictions on that, which were introduced into the permitted development right to protect the environmental amenity of an area—hence the planning permission is needed. However, there is no height limit for charge points installed by or on behalf of local authorities, which are able to consider the impact of a charge point at a particular location, as well as on the safety of road users and pedestrians, and any other local considerations. That is what we want to bear in mind.
In general, the intention of these amendments is an important consideration. Given the change in technologies, it is important that the Government ensure the existing flexibilities and terms of permitted development rights and that they remain fit for purpose—and certainly deregulate where we should. So I shall take the issue away and consider it further with the Ministry of Housing, Communities and Local Government before Report.
On permitted development rights in London and TfL, my noble friend Lord Borwick raised the proposal to give TfL or the Mayor of London permitted development rights to install rapid charge points. Again, we agree with the intention behind aspects of this amendment; the installation of charging provision in London is crucial to help to ensure that air quality and climate change targets are met and, despite some excellent progress by local boroughs, many more charge points will be needed. While we recognise TfL’s frustration at not being able to make quick improvements to a road network that it may be responsible for, it is right and proper that it works collaboratively with local boroughs to consider the local democratic process.
Lord Campbell-Savours
Do we know how many of these rapid charge points boroughs have actually been introduced up to now?
Baroness Sugg
Since January 2017, the number is 644 rapid charge points, and they expect to quadruple that and install over 2,600. I acknowledge, however, that we need to up our game on the installation of these charge points.
Baroness Worthington
The table that has been circulated indicates that, of 103 rapid charge points in London, four have been installed on borough land.
Lord Campbell-Savours
It that not in fact our case? They are doing nothing.
Baroness Sugg
My Lords, I think we all agree that insufficient progress has been seen; we absolutely need to take action on that, but we need to consider the local democratic process. The noble Lord, Lord Tope, spelled out very clearly the opinion of London Councils on this, and we want to see TfL and London Councils working in partnership to deliver what we need, ideally without the need for legislative intervention. We are working with TfL, MHCLG and GLA colleagues on this collaborative approach. A new governance framework has been set up, and there is a cross-party subgroup tasked with addressing these specific issues. The mayor is also creating a new electric vehicle infrastructure task force for London, in which the Government have been invited to participate as a member.
These non-legislative solutions have recently been introduced and are designed to ensure that this collaboration happens. I appreciate, however, that my noble friend’s amendment has a time clause in it, which is an interesting consideration. As the noble Lord, Lord Tunnicliffe, says, these are slightly dangerous waters, but we will certainly go away ahead of Report to see if there is more we can do to reach an agreement, or to broker a deal, between the local councils and TfL on this important issue. As I say, I think we have good bodies in place now to work on this, but it will require them to work together. We will come back to this after we have taken it further with them. I thank my noble friend for his invitation; it sounds a lovely idea. Perhaps we could do that after we get this Bill through to celebrate.
My noble friend and others raised the issue of rapid chargers on the Parliamentary Estate. As I mentioned at Second Reading, the authorities are currently carrying out a project to fit the underground car park in the Commons with 80 charge points, although, at the moment, they are not planned for our own Lords car park. Though I can reassure noble Lords that I am pushing on this issue and—hot off the press—I hear that the House authorities are still making a decision on whether to take forward the charge points. They are working with the planning and design authority that is installing the charge points in the House of Commons. I hope to come back with some positive progress, along with a timetable, on Report. If we do not see that positive progress, I will be meeting with the Parliamentary Estate authorities to understand why.
On the removal of charge points, the noble Baroness, Lady Randerson, raised an interesting proposal. On local highways, the authorities obviously have the ability to require the installation of charge points or prohibit their removal. For other public locations, it is an interesting point. I understand the issue she raises: after installation, we do not want to see them rapidly uninstalled. This consideration is best left to the market and the host sites that have installed the infrastructure. In the same way that a supermarket, for example, should not need planning permission to install a charge point, it might be tricky if it then needs planning permission to take it out again. I also have some concerns that it could have an unintended consequence for businesses or host sites, which may be put off installing infrastructure if they would be unable to remove it in the future. But I understand the point that the noble Baroness makes, especially when grants are involved, so I will take that away and consider it further.
I turn to wayleaves and charging infrastructure rights. Wayleaves are sometimes required for rapid charge point installations that require a new connection to the grid or a grid upgrade, where cables need to be laid across third-party land. Currently, the wayleave agreement is voluntary for the third party who owns the land and there is no obligation to accept the wayleave. In cases where an agreement for a wayleave cannot be reached, the Electricity Act 1989 provides the installer with statutory powers on which it can call if no alternative solution, such as changing the cable route, can be found, so a statutory application can be lodged to the BEIS Secretary of State to award the installer a necessary wayleave. These amendments raise an interesting point, which we have not consulted on yet. We have concerns that the amendments as drafted do not allow for the private rights of the owner of any third-party land to be taken into account, or to allow for any potential environmental effects to be considered. Because this involves private land access rights, we think that we need to seek more evidence and consult a wide range of stakeholders. However, I will take the issue away and discuss it further with ministerial colleagues in advance of Report.
On housing issues and the future-proofing of new homes and developments, the noble Baronesses, Lady Randerson and Lady Worthington, are right to highlight the importance of ensuring that new developments include provision for the necessary charging infrastructure. I am pleased that the Government’s National Planning Policy Framework that has recently been consulted on considers the same policy. When developing local plans, it sets out that local authorities must fully consider the inclusion of charge point infrastructure in new developments. The proposed NPPF envisages that applications for developments should be designed to enable charging of plug-in and other ultra low emission vehicles in safe, accessible and convenient locations. It also sets out that, when setting local parking standards for residential and non-residential development, policies should take into account the need to ensure an adequate provision of spaces for charging plug-in and other ultra low emission vehicles. We think that the NPPF is the right place for such changes to be introduced, so that local considerations can be taken into account by local authorities, and therefore we do not think that we should include such provision in the Bill. The noble Lord, Lord Campbell-Savours, raised an interesting point about smart meters, which I shall take back and consider.
The noble Baroness, Lady Worthington, suggested the introduction of regulation to ensure that leaseholders are not denied the ability to install charging infrastructure. Of course, where agreement can be reached between leaseholders and the landlord, the charger will be installed, but there may well be scenarios where one or the other will not agree for whatever reason—as the noble Lord, Lord Campbell-Savours, highlighted—such as on who owns the charger, who is responsible for its maintenance and the cost of the electricity where a communal supply is involved. The amendment raises an interesting point, but we need to ensure that, while leaseholders are not denied the ability to install a charge point, we consider those other issues fully, such as the rights of freeholders and landlords.
Baroness Worthington
In the spirt of this Bill being entirely about enabling powers, would it not be sensible for the Government to consider taking an enabling power that can then be used if necessary, given that we are really at the start of rollout, which must rapidly increase if we are to hit our targets? It seems highly likely that we already have evidence of leaseholder-lessee disagreements holding us back—I could go out and gather it all for you. We are simply talking about taking a power to enable the Government to regulate. Otherwise, we will be back here in a year’s time having to go back over this ground again. Surely this is an opportunity to use the Bill to try to future-proof the situation.
Baroness Sugg
The noble Baroness makes a fair point. The Ministry of Housing, Communities and Local Government is doing a review of the relationship between leaseholders and freeholders, so I shall ask whether that might be an appropriate place to consider this issue. I have heard what the noble Baroness said, and I will take that back.
Lord Campbell-Savours
Given that such a review is going on, could the Minister drop us a note to tell us whether this suggestion will be considered?
Baroness Sugg
I certainly will. I will need to go back and discuss whether we can include this suggestion. I am not sure that we will go as far as the noble Baroness would like us to on that, but I will certainly get a conclusion on that and come back to noble Lords.
Finally, on the amendment that would ensure the provision of ducting and precabling infrastructure for new residential and non-residential buildings, in the industrial strategy, published last November, we committed to update building regulations to mandate that all new residential developments must contain the enabling cabling for charge points in homes. That will be an important step in future-proofing new homes and avoiding more costly retrofitting. For non-residential buildings, the NPPF will ensure that local authorities consider the need for adequate charging provision in developing their local plans. Before Report we will consider whether that is sufficient or whether we can go further.
Given these reassurances, I hope that the noble Baroness feels able to withdraw her amendment.
Baroness Worthington
Before the noble Baroness responds, I want to check that I am clear about that last point about the NPPF. With residential buildings, the expectation is that there might be a shift. However, why would there be a difference as regards leaving it with local authorities for non-residential buildings?
Baroness Sugg
It is purely because in the NPPF we have already committed to the residential side of things and have made that clear in the industrial strategy, while we have not yet gone so far on the non-residential side of things, which I will go back and have a look at. As I said, the consultation on the NPPF recently closed, so we are doing this work at the same time as MHCLG is considering its response to that consultation. I believe it is due to publish that in the summer, but obviously we will have Report before that, so I will take that back.
Baroness Randerson
I thank the Minister for her response. Once again, it is a very detailed issue, and I will read the record carefully.
I will respond on one point. The Minister said that it was not reasonable to complain if a parking space with a recharging point were taken out when it had never had to be put in in the first place—whoever did so did it willingly. That is what I understood her to say. My vision of how this would work is rather akin to the issue of parking spaces. There are planning permissions in certain areas where maybe for a certain size of house you need one parking space. If you choose to put in five, that is up to you; it is not illegal—you can do it. If you then want to take out those extra four spaces, no one can complain, but if you want to take out the fifth, they can. It is an issue of dealing with your minimums and ensuring, once again, that this is always at the top of consideration.
To be honest, I was not frightfully impressed by the concept that local authorities “need to consider” something; they need to address it, not just consider it. I listened with interest to the discussion about the mayor’s plans versus the local authorities in London. There needs to be a solution here which is not heavy-handed in taking away local initiative but which ensures that those local initiatives are empowered and encouraged and run rather more smoothly than they have done up to now. I understand the point that there has not been enough action up to now. I beg leave to withdraw the amendment.
Lord Tunnicliffe
My Lords, our Amendment 104 is in this group. This group is about reporting, and different ways been suggested. I hope that when she responds after my speech the Minister will offer to bring them together in the best possible mix and agree to a reporting procedure.
The proposed new clause would require the Government to lay a report before Parliament each year to consider how the regulations are working, and, specifically, the impact they are having on charge point operators, fuel retailers, the National Grid and the overall uptake of electric vehicles. The Government are intending the Bill to enable and encourage the uptake of electric vehicles, and they are right to do so. It would therefore make sense for them to review regularly whether it is actually happening and whether things need to be changed down the line. Involving Parliament in this issue would not only be beneficial for the Government but would enable them to regularly reassess their work. I am sure that the Minister would be saying that to us if our seating arrangements were reversed. We must keep the matter constantly under review and be prepared to revisit it if the circumstances require.
Baroness Sugg
My Lords, I very much agree that it is important that the Government take a strategic approach to encouraging and supporting the uptake of electric vehicles and the infrastructure that they rely on, that we monitor our progress against our air quality and carbon targets and that we review the effectiveness of any regulations brought forward under this Bill. I know that there is frustration about the narrow scope of the Bill, but I am afraid that it is just about electric vehicle infrastructure. It is not the extent of the Government’s work in this area.
In 2013, the Government published a strategy entitled Driving the Future Today, which set out the path towards achieving our zero-emission vehicle aims. Of course, much has changed since then—10 times as many ultra-low emission vehicles were registered in the UK last year as in 2013. While the aims of that strategy remain relevant, we are rightly considering how our approach needs to change in light of developments in the automotive sector and beyond.
As noble Lords are already aware, the Government will shortly publish a new strategy for promoting the uptake, manufacture and use of zero-emission vehicles, which will set out the Government’s vision and support for the provision of charging infrastructure for both battery electric and hydrogen cell electric vehicles to help facilitate this transition.
The strategy will go wider than just zero-emission vehicles. We recognise that it is also important to drive down emissions from the conventional vehicles that currently dominate our roads if we are to meet our ambitious climate change and air quality commitments. That includes considering air quality and carbon impacts in parallel and setting out the Government’s view on the role of different fuels in the coming decades.
With regard to Amendment 55, moved by the noble Baroness, Lady Randerson, to review the effectiveness and uptake of the Government’s incentive schemes, the department already keeps under review its existing schemes supporting the rollout of infrastructure and will take the necessary steps to encourage the installation of charge points where they are needed. Further steps will be identified on that in the forthcoming strategy.
I thank the noble Baroness for her suggestions in Amendment 70. We are also looking at the potential of lamp posts. She is quite right to say that not all of us have driveways or garages and so we need to make sure that we get on-street parking right, too. We have an on-street residential charging scheme and we are funding several local authorities to help them to install lamp-post charge points—450 this year. That is something that we are looking to develop.
On the important point of reporting against our air quality and carbon targets, which noble Lords have addressed in Amendments 98 and 99, there are already legal obligations to report and make public data on ambient air quality and emissions of a range of damaging air quality pollutants. In some cases, these obligations implement international level commitments. Of course, the national air quality plan and the clean growth strategy also set out how the Government plan to meet the UK’s air quality and climate change obligations. In addition, we are also already required to report to Parliament on progress against our obligations under the Climate Change Act 2008, of which of course the noble Baroness, Lady Worthington, was a lead author. Our ambitions to achieve a greater uptake of zero-emission vehicles is central to delivering the transport sector’s contribution to those obligations and will therefore form part of the reporting requirement.
As I have explained, the introduction of regulations will depend on the precise circumstances at the relevant time, so we are concerned that we may not be in a position to report on the impact of these regulations within the 12-month reporting period set out. The policy scoping notes set out the approximate timings for when we expect the regulations to be brought forward. I will probably follow that up in writing rather than go through the different clauses in detail now because the question of when we envisage the regulations coming in has been raised a number of times in today’s debate.
Our wider strategy for electric vehicles as well as the infrastructure to which the Bill specifically relates will be published shortly. I have mentioned the existing requirements to report against our air quality and carbon targets. We want to ensure that a requirement for reporting on this quickly moving area of technology is not disproportionate and unnecessary, but following the debate today, I will reflect on the points made ahead of Report and consider an amendment on this point. Given that assurance, I hope that the noble Baroness will feel able to withdraw her amendment.
Baroness Randerson
I thank the noble Baroness for her response and I am certainly happy to withdraw the amendment.
Baroness Sugg
My Lords, the noble Lord, Lord Campbell-Savours, spoke about space at major fuel retailers. The noble Baroness, Lady Randerson, is right that they often have hundreds of car parking spaces, and that is where we envisage that the charging will happen. The department has no plans to look at purchasing land around such locations. We think that the regulations would need to exclude locations where it is not possible or sensible to provide electric vehicle infrastructure, as we have set out in the policy scoping notes. Of course, space is an important consideration, which is partly why we have identified major fuel retailers as the right place to start.
Lord Campbell-Savours
I am sorry to go back to car parks, but when I travel on motorways I often find the car parks are full. They cannot be used for both parking and for people to put their vehicles on them to charge. In certain conditions, there may simply be insufficient spaces on the motorways because the car parks are heavily used.
Lord Campbell-Savours
Equally, I was asking at the dinner last night about the cost of these chargers. Rapid chargers are £40,000 a piece; we are talking a lot of money. It may be that part of the provision will not be the rapid chargers.
Baroness Sugg
My Lords, I think that space will be limited at some of these destinations, but they have been identified as the ideal place to start putting in this infrastructure, which is what we are doing. This is the start of the process. We will look at how effective it is, how many charge points are put in and whether they are rapid charge points.
On whether it may be appropriate to require the installation of charging facilities in future at other locations such as supermarkets, railway stations and private and public parking facilities, the vast majority of electric vehicle drivers choose to charge their cars at home at night, but we need appropriate and adequate provision of public charging if we are to see as many electric vehicles as we want in the coming years. However, we do not believe that regulating for provision will always be the right approach. It is a powerful tool, but other levers can be used. We have many grant schemes and policy measures to support the installation of charge points at a range of locations, including many of those listed in the amendment. For example, we have already committed to providing greater emphasis on electric charging at rail stations in our franchising process. Through a train station scheme, Plugged-in Places and the public sector estate scheme, more than 7,000 charge points have been funded in a wide range of locations. Planning policy—in particular, the NPPF— is proving to be an important tool in leveraging infrastructure, future-proofing new developments and ensuring that local authorities consider charge points in their plans.
Proposed changes to the NPPF would require that when local parking standards are set policies should always consider the need for adequate provision for charging EVs. The London Plan is a good example of where there has been a big impact and where the NPPF has encouraged local authorities to take an ambitious approach. In the London Plan, the GLA mandates that developments in all parts of London ensure that for every five spaces one must have an active charge point and one must have enabling cabling for future use to encourage the uptake of EVs.
We have also introduced enhanced capital allowances, a tax relief for companies to support the development and installation of recharging equipment. The first-year allowance of 100% allows businesses to deduct charge point investments from their pre-tax profits.
Specifically on Amendment 73, we have also already announced that we will update building regulations to require enabling cabling in all new residential housing developments, as we discussed earlier. In addition, we offer grant funding for private facilities, through our workplace charging scheme, to support installation; it is working particularly well for electric fleets. As a result of these measures, and because of the opportunities in this new market, we are seeing the private sector taking the lead and chargers are going in at destinations including car parks and supermarkets. The noble Baroness, Lady Randerson, gave the excellent example of going to Waitrose because it has a charge point. We are seeing growing numbers of EV drivers using such shops in order to use the charge point.
So we are making good progress on electric vehicle charging points; we have seen 500 charge point connectors installed in the country in just the last 30 days. A lot of companies and destinations throughout the country have ambitious plans to install charging infrastructure. Chargemaster is investing heavily in providing EV charge points at key strategic locations, such as hotels, sports clubs and shopping centres and is planning an additional 2,000 units. Asda has charging facilities at more than 100 of its stores. Even the National Trust is installing charge points at places such as Hadrian’s Wall and the Giant’s Causeway. Health clubs and all sorts of other places are doing it too. So we think that the market is working here. My ministerial colleagues meet regularly with the charge point industry—although not at last night’s dinner—and they are confident that we are making progress in that space.
One of the main reasons for the decisions of major fuel retailers is range anxiety, as we have discussed previously. Of course, we need sufficient charging infrastructure on our motorways and major roads so that people will travel longer distances. When we consulted on the Bill, we determined that it was most appropriate to mandate provision at those sites that are crucial in reducing range anxiety. We believe that the Government should regulate only where there is a specific need and not where we are confident that market forces will deliver the necessary infrastructure to meet the needs of EV drivers. Again, I heard what the noble Baroness, Lady Worthington, said on that.
Amendment 75 is an interesting amendment to enable metro mayors to designate premises under Clause 10, which would allow them to use powers in their local area at a timetable of their choosing. In our conversations with metro mayors it was a priority ask of theirs. As the noble Baroness, Lady Worthington, said, cities and regions play a hugely important role in local environmental strategies and dealing with the air quality challenges they face. Of course, charging infrastructure will need to be part of these strategies. There are some considerations around such an amendment and we need to give it due care and attention. We want to ensure that any regulations or requirements that are introduced receive the proper scrutiny of Parliament. We will be defining large fuel retailers and setting out appropriate circumstances for charge point installation in future regulations. Of course, those regulations will be subject to parliamentary scrutiny; we want to ensure that any powers afforded to mayors or combined authorities in this area can only be exercised within those clear definitions and a defined remit.
Given that these powers are not UK-wide but region-specific there is a possibility that imposing this requirement could encourage the relocation of petrol stations outside of the mayoral area should the requirement be disproportionate. As the noble Baroness, Lady Randerson, said, we also need to make sure that it will not mean that areas that do not have metro mayors lose out. As noble Lords will be aware, metro mayors have different devolution deals—that is also something we will need to consider further. We will also need to consider others in the area with transport responsibilities, such as boroughs and local highways authorities, but we think there is merit in considering aspects of this approach. We would not want it to be wider in scope than the locations as currently defined in Clause 10— I was pleased to hear the noble Baroness, Lady Worthington, mention that. Local authorities have voiced concern about powers being widened to include locations managed by them, but I commit to taking this issue away and considering it before Report. On that basis, I hope the noble Baroness feels able to withdraw her amendment.
Baroness Worthington
I thank the Minister for her response. Obviously, as discussed, there are some sequencing issues about when and how you expand scope and for whom. In response to the point made by the noble Baroness, Lady Randerson, about different cities having different tiers, we felt this was appropriate for the mayoral cities because with democratic election comes accountability. You would naturally expect there to be powers that come with that. To the extent that we have already accepted that we are allowing cities to change status by having elected mayors, we are tacitly saying that we are okay with that level of devolution and I do not really see that this is any different. It is about accountability: you have the ability to elect that mayor and they should have powers as a result.
I listened to the Minister’s response and will read it again carefully. There is quite a high reliance here on planning and changes to the NPPF to get us where we want to get to. We will probably come to this in the final group of amendments. My overriding concern is that if you were to look at the market today and see the numbers of electric vehicles being sold, why would you do anything? Why would you require that anything be done? The levels are so low. When it comes to hydrogen, they are almost non-existent. This is going to need some kind of kick-start. The latent demand is there among consumers, I am convinced of that. We have the skills and the money wanting to invest in the infrastructure. I fear that we will just not have the cars.
We will have to come back to that. I hope that in the Road to Zero strategy the Government think hard about how we marry all these infrastructure questions with the market restructuring that is already needed. On the basis that the Minister has agreed to take away some aspects of this, I am happy to withdraw the amendment.
Lord Tunnicliffe
My Lords, I shall speak briefly to Amendment 66, in my name. It would provide exemptions for operators with limited forecourt space who could not accommodate public charging points without an expansion of land, and ensure that retailers and operators did not incur disproportionate costs for complying with regulations. The general thrust of the Bill is to make more charging points available, but we must ensure that there are no unreasonable unintended consequences. I do not think the wording of the amendment is particularly good, but I would like the Minister to consider that general approach. There are a lot of powers in the Bill, and if we are not careful we may find some pockets of unreasonableness.
Baroness Sugg
My Lords, I acknowledge this as a particularly excellent group of amendments. These points are all key priorities that will need to be consulted on before any regulations are brought forward. As proposed in Amendments 63 and 64, it is important that the Government can specify the type of charge points being installed in large fuel retailers or service areas. It is already the Government’s intention, as is made clear in the policy scoping notes, that any regulations under Clause 10 would include details of what provision of electric vehicle infrastructure will be required to ensure that the needs of users are met, and to deliver a quick and hassle-free charging experience, similar to refuelling conventional cars today.
This would include: specifying the level of charging infrastructure, most likely to be measured by number of charge points or hydrogen refuelling points; the specification for that infrastructure, such as the minimum power outputs and the connectors of charge points—I entirely agree that we want to avoid multiple chargers, and another VHS/Betamax situation—and any other operational requirements, such as the opening hours of the charge point. Decisions on those will not be taken by the market; they will be set by regulations—but they will be informed by consultation both with the market and with users of vehicles, to ensure that we get it right.
Lord Campbell-Savours
Is the Minister saying that the motorway service station provider will be told the proportion between one form of equipment and another?
Baroness Sugg
I missed that last point: the motorway service station provider will be told what?
Lord Campbell-Savours
The kind of equipment, whether three-hour, 20 minutes, 12-hour or whatever, to install.
Baroness Sugg
Chargers will normally be based on the power they deliver rather than the time but yes, absolutely, the regulations will set the minimum power output required of the petrol stations installing them, otherwise we could run the risk of a much cheaper, slower charging point being installed which would not do the job we require.
Any regulations would also include the details of the circumstances in which the provision of infrastructure would be required, as proposed in Amendments 65 and 66. As my noble friend Lord Borwick suggested, we must ensure that charge points are easily accessible and not at an unacceptable distance from amenities. That is something that we will absolutely include in regulations.
I turn to the point made by the noble Lord, Lord Tunnicliffe: whether regulations will entail a list or definition of service area operators to which the requirements will apply and the criteria for the locations at which fuel retailers will have to make specified provision. Clause 15 gives the Secretary of State power to create exceptions from any requirement imposed by regulations, and that will be used where an expansion of land or other disproportionate cost would be required.
As stated in Clause 16 and detailed in the policy note, all the regulations will of course be informed by consultation with industry, fuel retailers, the motor service area operators, the electrical vehicle infrastructure providers and operators, electricity providers and electric vehicle manufacturers and drivers. The regulations will need to take account of an assessment of the current and planned provision at the locations in question, an understanding of the underlying fuel retail and motorway service businesses and the needs of the users, and the factors which will make particular sites more or less suited to the installation and operation of electric vehicle infrastructure.
The noble Lord, Lord Mawson, raised the interesting question of linking insurance with promoting electric vehicles, particularly to young people, and the worry that we will have infrastructure charge points but not the vehicles to plug into them. I reiterate that the Bill is narrow: it is specifically about the infrastructure of charge points and hydrogen refuelling. It is not the only thing that the Government are doing: we will shortly publish our strategy on the Road to Zero, which will look at the targets we set and exactly how we will use the levers we have to encourage the use of electric vehicles.
I reassure the noble Baroness, Lady Randerson, that interoperability and the ability to charge quickly will be a high priority in the regulations. All the issues raised on the amendments will be important, but they will all be addressed in the regulations. Therefore, the amendments are not needed. On that basis, I hope that the noble Baroness will withdraw the amendment.
Baroness Worthington
I thank the Minister for her response. I am encouraged that there will be some good news on the Road to Zero strategy—we look forward to that—and that Clause 10 will be elucidated in regulations. We have talked about this before, but this is one aspect of the Bill that it would be good to attach a timeline to. Perhaps we can talk about that between Committee and Report. On the basis that these issues will be addressed, I am happy to withdraw the amendment.
Baroness Worthington
In moving Amendment 89, I shall speak to other amendments in this group. I should perhaps comment that we have seen Clause 11 stand part of the Bill, which we have touched on but not properly mentioned; it is a very important part of the Bill, and I am glad that it is in there. Like Clause 13, it feels like an essential part of what makes this Bill worth doing. The provision of information to consumers is hugely important and is currently very fractured and frustrating.
I am encouraged by the scoping note showing that the Government’s thinking on Clause 13 is fairly well advanced, so we can expect regulations quite soon. The amendments in my name make a simple point; as drafted, the clause appears to provide powers to make regulations about the sale and installation of charge points, but we simply wanted to ensure that they were also used and that the smart capabilities were used. There is no point in requiring them to be made available if there is no similar requirement that they are switched on, working and useful for consumers. I am not entirely sure that our wording is exactly right, and I would very much welcome discussing this further.
The intent of the amendments is to say that we know that the advent of electrification in transport provides a potentially great way to balance our supply and demand on the grid. The Environmental Defense Fund in Europe and WWF have had a great collaboration with the National Grid around making more visible what is happening on our grid at any given point. We helped to launch a carbon intensity tool with them, which shows you in real time how clean the grid is. On a sunny, windy day like the one that we have just had, you will find that the carbon per kilowatt hour generated is now below 100 grams. That is an extraordinary testimony to the amount of hard work and effort that has gone into encouraging investment into clean-air forms of electricity. There will be times in the day and month when it is extraordinarily clean to charge your infrastructure, your vehicles and indeed heat needs from the grid. That will unlock a huge potential for batteries in vehicles and, indeed, homes, to be used as part of the grid’s balancing of supply and demand, soaking up the excess when there is excess and then providing back to the grid at times of need.
It is great that this provision is in the Bill. We would just like to have reassurances that there will be regulations to cover the use as well as the installation and sale of the smart components of this hugely important part of the charging infrastructure. I beg to move.
Lord Young of Cookham
My Lords, as the co-pilot again, I am grateful for this opportunity to discuss smart charging, which helps electric vehicles benefit both their owners and the energy system.
In broad terms, smart charging helps to shift, where possible, the times when EVs recharge their batteries to off-peak periods, when electricity is cheaper and cleaner and the network has more capacity. I was interested in the information given by the noble Baroness about the cleanliness of the power from the grid at any particular point in time—and the incentive that might give environmentally conscious consumers to use that information to decide when to charge their vehicle—and let me reassure the noble Baroness that we want this capacity to be used. In practice, this could be done, for example, by a signal being transmitted to a smart charge point, which then responds to the signal by increasing or decreasing the rate of charge. The charge point could have its own metering system, or it could potentially be integrated with a smart meter in domestic cases.
Clause 13 helps create the right environment for smart charging by ensuring that all new charge points have the smart functionality that the noble Baroness spoke about. The clause is technical in nature and is not about specifying how customer behaviour is influenced. This is likely to be done by price signals, and we are working with the Office of Gas and Electricity Markets, which regulates this market, and with the Department for Business, Energy and Industrial Strategy, to facilitate such an approach.
Amendment 89, from the noble Baroness, Lady Worthington, seeks to do two things: first, to require, with caveats, the use of smart charging systems; and secondly, to require, with caveats, the use of intelligent metering systems. As the noble Baroness has set out, the rationale for the amendment is to enable smart charging to reduce costs and carbon emissions for consumers as well as helping the energy system to balance the peaks and troughs of electricity supply and demand. I wholeheartedly agree with these goals, and that is what Clause 13 does—it enables smart charging by requiring all charge points to have this functionality. The current version of the clause seeks to allow this to be done by incentives, such as price. If that is the intention of the amendment, we do not think it is needed.
However, another interpretation of the amendment—possibly unintended by the noble Baroness—goes further than that and, subject to caveats, creates a requirement for smart charging rather than allowing incentives. The problem with this approach is simply one of unintended consequences. First, if smart charging was a requirement, the relevant energy companies would not need to pass on any benefits to the consumer. They would not need to give a discounted price for charging at certain times of the day because the consumer would already be required to do this by law. Secondly, the amendment would mean a significant level of government interference in domestic consumer behaviour if it essentially meant dictating when a consumer could and could not charge. That may not have been the intention of the noble Baroness, but I am advised by those who know more about the legislation than I do that that would be a potential impact.
On the second part of the amendment, on intelligent metering, I hope that the noble Baroness is reassured that Clause 13 can already prescribe such a system. The example given in Clause 13(2)(d) is to require the charge point,
“to monitor and record energy consumption”.
The effect of this part of the amendment would therefore be to make such metering mandatory and to use the specific definition in the amendment rather than the current approach of allowing consultation to help decide whether smart metering is necessary, and if so what precise definition to use. For example, by 2020 every household in the UK should be offered a smart meter, which may make additional intelligent metering in the smart charge point unnecessary.
Amendment 92 seeks to require the smart charge point to react to information in a “prescribed fashion”. We do not think that Amendment 92 is needed. Clause 13(2)(b) is an example of the requirements under Clause 13, and regulations under Clause 13 can already prescribe how the charge point reacts to information.
Amendment 94 seeks to require that information relating to the use of charge points, such as availability and price of charging, is made available in a prescribed format. It also seeks to ensure that charge points have the ability to reserve time slots for drivers to charge their vehicles. That is precisely the intention of Clause 11, which would require operators of public charge points to make available prescribed information. The policy scoping notes provide a list, which is not exhaustive, of all of the types of information that operators may be required to make available to users, including: location; operating hours; cost of accessing and using the charge point; method of payment or access; means of connection; whether the point is in working order; and whether it is in use.
Regulations brought forward under this clause would also give the Government the ability to ensure the provision of open source data on public charging points in a standardised format. This would mean that the data would be available to anyone wanting to use it, enabling service providers such as app developers and satnav companies to utilise the information to create services, such as apps, for drivers. The provision of open source “live” data could also support the provision of services that would enable drivers to reserve charge points.
Amendment 97 in this group was not spoken to or moved, so if the Committee will forgive me, I will not address it.
I thank noble Lords for raising the importance of smart charge points. I hope I have given some reassurance that this clause and the other measures I have outlined will help to create the right environment for smart charging while avoiding onerous requirements on consumers. On that basis, I hope the noble Baroness might withdraw this amendment.
Baroness Worthington
I thank the Minister for his response. I am not fully reassured. This seems to come down to whether we put in regulations or allow the market to set incentives as regards whether this smart capability will be part of our future charging infrastructure. I can see that to rely on market incentives might mean that the consumer is much more vulnerable than if we were to regulate. The reason for that is because of my experience in America, where all electricity bills are set, state-by-state, by different regulations. Where there are few protections and regulations, the market prices the marginal excess use very highly. If there are no protections, you find that if you tip over a certain volume of electricity use, your charge per unit spikes enormously, which means that people are vulnerable to failing to realise that they have gone over that threshold. So in this instance the market cannot necessarily be relied on to provide the right incentives, and it may lead to a considerable exposure to risk for consumers who are not perhaps fully informed. Therefore I do not fully believe that we should just leave this to the market.
I take the point that regulating to insist that, for example, time of use tariffs are in place everywhere may also not be the answer. However, we definitely need to do something here to ensure this. We may not put this on to the super-rapid chargers or the rapid chargers in the motorway infrastructure, because there you may well need to charge at 5 pm when you are en route somewhere, and you do not want to be exposed to differential prices. However, the vast majority of charging—the backbone of this—will be done at home, or as at-destination charging, and there is a need to set some standards and regulatory requirements there on the use of the smart capability. I come back to the fact that while Clause 13 is welcome, it just covers the sale and installation and does not do enough to reassure me that we will also talk about the usage of that smart capability. I would like to come back to this, but I recognise that the wording we have may not be perfect, and it would be good to talk about it further. On that basis, I beg leave to withdraw the amendment.
Baroness Randerson
My Lords, in speaking to my Amendment 106, I want to agree with what has been said by the noble Lord and the noble Baroness. This is a missed opportunity in that, until the last six months or so, transport Bills have been few and far between. I realise that they are falling like confetti now, but each one is so tiny that, between each Bill, there are great gaps in the strategic action that needs to be taken. Ironically, we have been concentrating a lot on the cutting edge of technology—we have looked at space travel in the Space Industry Bill and at lasers. The pace of technology in those areas is very fast, and this is the same. There is a need for strategic thinking, because the detailed stuff is in danger of becoming out of date. The result is that the Government, being aware of that, have written not just narrow Bills but very vague Bills, giving them lots of power to dream up regulations but no guarantee on the direction in which they are going.
The noble Baroness, Lady Worthington, addresses in her amendment the need to be accurate about what the Bill is. Turning that on its head, in various speeches in our proceedings I have referred to the fact that the part of the Bill dealing with automated vehicles ignores the street scene changes and the changes to the structure of road safety law that will be needed. In Amendment 106, I have drawn attention to hydrogen. That is another specific example of other sorts of developing technology that are lower emission and deserve to be part of an overall strategy.
My final thought on this is that the Government need to do a great deal of connected thinking on all these little bits of effort. We are in danger of leading people to think that we have a strategy fit for the future. I do not believe that we have.
Baroness Sugg
My Lords, throughout the proceedings today we have considered the scope and timings of this legislation, and those two points are captured by the amendments in this final group.
Amendment 105 suggests that the legislation comes into force on the day on which it is passed. Under the current text, the Secretary of State will appoint by regulation the day on which the Act comes into force. The commencement timings that are currently contained in Clause 18 follow standard conventions for commencement, whereby the substantive provisions of an Act come into force on dates specified in regulations. I understand the desire of the noble Baroness, Lady Worthington, to make sure that the important measures in the Bill are implemented as soon as possible to ensure that we have the tools available to install the infrastructure necessary to support the uptake of electric vehicles in this country, and to enable insurers to start developing products for automated vehicles. I assure the noble Baroness that we do not intend to delay bringing forward this important legislation once it has passed.
As I mentioned earlier in the debate, we will start to bring forward regulations on smart charge points soon after Royal Assent. As outlined in the policy scoping notes, we think that the regulations under Clause 10 will be needed in the early 2020s for battery electric charge points, and not until the mid-2020s in the case of hydrogen refuelling—although that may not be quick enough for the noble Baroness.
As outlined earlier, the Office for Low Emission Vehicles will continue to monitor the market, working closely with stakeholders, to determine when it is appropriate and right to bring forward the regulations. But it is important that the affected sectors are not disadvantaged by having little or no notice of the coming into force of the Act, and that the Government have the flexibility to bring the provisions of the Act into effect at a time when they are ready to use them.
Amendments 106 and 107 would change the Short Title of the Bill. I recognise that there is room for the Bill’s scope to be reflected in greater detail in the Short Title by making more explicit the range of powers included in the Bill, and as we mentioned at the start of this debate, it is clear that hydrogen refuelling is also very much a part of the Bill. It certainly was not designed to get false credit or to be dishonest, so I will certainly look at that issue again before Report.
I should like to take this opportunity, in the final group of the day, to reiterate that this piece of legislation is not the limit of the Government’s activities in the field of electric vehicles and automated vehicles, nor are we standing still while we wait for this legislation to come through. We have narrowly selected the provisions in this Bill to bring forward those that we think are ready and necessary to legislate for at this point in time. We are using a number of other tools to increase the deployment of electric vehicles. Our forthcoming strategy on how we will get to zero emissions from road transport will set out how we will continue to support the transition to zero-emission vehicles, ensure that the UK is well placed to capitalise on new economic opportunities and drive down emissions from conventional vehicles.
I have heard the frustrations of noble Lords today on the level of ambition in the Bill. I am afraid we will not be able to widen its scope. That will be for future legislation after the Road to Zero document, which will be full of connected thinking. But I certainly commit to taking away points raised by noble Lords and to seek to strengthen the provisions where I can. I thank noble Lords for their contributions today, and look forward to returning to the Bill on Report. I hope the noble Baroness is able to withdraw her amendment.