(6 years, 5 months ago)
Lords ChamberI thank the Minister for that explanation. For the information of those listening, the noble Baroness, Lady Worthington, and I attempted to lay an amendment to clarify the issue of service areas, or car parks as they might be called. However, according to the rules of the House that was not possible at Third Reading, so there is no amendment from us. But there is still a question in my mind: how do the Government envisage the strategy and policy, going forward? As I mentioned the last time we discussed this, if you go to a service area on a motorway you get your electric charging near the café—very often hundreds of feet from the fuel station—but that does not appear to be what is in the Government’s mind in relation to other service areas. I would like to know what the Government’s strategy is on this. I am sorry to be raising such a detail at Third Reading but we really only talked about this on Report. I still do not have a real understanding of why the Government are not considering having regulations in relation to the car parks associated with service areas, rather than just the fuel stations.
My Lords, I too thank the Minister for her introduction of these amendments. They are very helpful; they clarify the position and make the Bill much more useful. In Committee we debated the fact that this is a very narrow power being taken in relation to the infrastructure necessary to facilitate a greater uptake of electric and zero-emission vehicles. It is important that we look carefully at what more can be done to encourage everybody, at all levels of government—whether national, metro mayor or indeed at borough level—to take stock and introduce an effective network of chargers, which can help people to be confident that they will be able to use electric vehicles in a way that matches their current vehicle use.
I echo the comments of the noble Baroness, Lady Randerson, in asking: can we hear a little more from the Government, specifically about car parks but about destination charging in general? I feel that it is a little too laissez-faire to think that this will all happen through market forces. There are going to be times when we will need to take a strategic look at this in a specific geographical region. We need to have sufficient powers to enable us to make this infrastructure happen; we will otherwise not see the uptake that we need to hit our air-quality and climate-change targets.
My Lords, at the risk of causing a bit of trouble at this stage of the Bill, I cannot see why it matters particularly where the charging points are in a motorway service station. If you are going to park your car and go off to have a drink, you might as well plug it in while having it. If you do not want to do that but have a high-powered, high-speed charger you can probably do that as if you are filling up with petrol. The general principle in the Bill is all right but I suspect that the commercial pressures on the operators will persuade them to put the charging points where they are most convenient.
(6 years, 5 months ago)
Lords ChamberMy Lords, I offer the suggestion that rather than making a long shopping list of particular types of vehicles we might introduce the concept of zero-emissions vehicles, which would be a very important category to report against. When we get statistics from the SMMT it talks about alternatively fuelled vehicles as a category but that includes hybrids, which of course have tailpipe emissions, and sometimes those emissions can be higher than those from a normal car. I encourage the Government to think about zero-emissions vehicles as a catch-all.
My Lords, it must have already been accepted that hydrogen vehicles are within the scope of the Bill, otherwise an amendment to deal with them would not have been accepted. I should have thought that having done that, it might add a bit of clarity to add it to the title of the Bill as a supplementary amendment with very little substance except form.
My Lords, I shall speak briefly to this group of government amendments. I thank the Minister for listening to our interventions on the topic. At the moment, we do not have good oversight of how the market will develop; we have what I feel is a somewhat unnatural market in infrastructure, as the Government have chosen to focus on charging infrastructure without sufficient attention to whether there are enough cars for people to buy and use affordably to make use of that charging. As a result, we may have boom and bust in the charging infrastructure. We must keep those two important aspects in parallel: both the charging infrastructure and the cars. In the absence of a more natural market with more cars, it is very important that we have the regulations to ensure that where charge points are installed, they are maintained, so I am very grateful to the Minister for tabling the amendments, and fully support their intent.
My Lords, I just want to tell my noble friend how helpful I find the amendment and how useful it is. The climate change committee has drawn attention to the fact that one reason for the lack of uptake of such motor cars is people’s feeling that they cannot rely on a charging system to travel around the countryside. The amendment is an important addition to that provision.
However, I remind my noble friend that one issue here is that people are very suspicious of the correctness of the information given to them by the motor car industry generally. Therefore, this support will be invaluable. We are still being told things about motor cars which are not true. The figures being put out for the performance of motor cars—including electric motor cars—are very different from the reality. It is in that atmosphere that the amendment is important.
I hope that the Government will recognise that in other areas in this business, too, regulation is not an imposition but an encouragement. Good regulation is a good thing. We are against bad regulation. In this area, we need regulation that gives people confidence in what is for most of them a very new technology. I thank my noble friend but also urge her to recognise that we need similar support in other areas if we are to get the change which we will need. I remind her that the Government have set far too far a target for the eradication of new petrol and diesel-driven vehicles: 2030 is necessary if we are to meet the fourth and fifth carbon budgets, so there is a real need to get on with things which will encourage people to buy these motor cars.
My Lords, this amendment follows on very neatly from a reference in government Amendment 13 about the,
“performance, maintenance and availability of public charging or refuelling points”.
The point was made several times in previous debates that having no charging point at all is possibly less frustrating than getting to one that does not work. I am moving on to an issue that I have raised before, which is that once you have installed a charging point it needs to stay there. Since the Government appear to have accepted the principle that planning legislation will be able to take into account the provision of charging points, we need reassurance that it will also take into account that permission will be needed to remove charging points.
I am not dreaming up an obstacle out of the blue, for the sake of it. I have already come across this issue locally to where I live, where a charging point was installed and then there were moves to remove it to change the configuration of a car park. Local residents raised the issue and ran a campaign to keep that charging point there. We cannot expect that always to work. I suggest that this is a good opportunity for the Minister to say publicly that the Government intend to deal with this issue in the regulations.
I should have made it absolutely clear that Amendment 18 looks at the provision of charging points in non-residential premises. Amendment 20 looks at the requirement for charging and refuelling points in new developments. Once again, I draw the analogy with parking spaces. It is quite normal for planning permission to say that you must provide a parking space; if you are building a block of flats, you have to provide at least six parking spaces, for instance. You also need permission if you wish to remove those parking spaces.
My amendment suggests that there should be a requirement in the regulations that new residential, commercial and industrial developments should include charging or refuelling points in the same way as they would require parking spaces. However, I have an eye to being reasonable. There will, of course, be situations where requiring this would be inappropriate, or make the development not viable. The suggestion made by the noble Baroness, Lady Worthington, of ducting as a possible preparation for this, deals with that issue. We clearly also need some kind of standard approach to such a requirement, in the same way as to the provision of parking spaces. It would be useful if the Government were able to clarify whether they intend to address these specific issues in the regulations. Only with the provision of charging points in a variety of situations, and refuelling points where appropriate, will we deal with the issue just raised by the noble Lord, Lord Deben. The public have to have confidence in a widespread supply of places to recharge or refuel their cars. I beg to move.
My Lords, I will speak to Amendments 19, 34 and 35 in my name. I am retabling amendments discussed in Committee relating to the changes to planning necessary to enable the huge change in our transport infrastructure which the Government have stated they wish to happen. The scale of this challenge is quite daunting. I fully support the comments made by the noble Lord, Lord Deben, who said that we need to embrace positive regulation in this instance. The natural pace of things is far too slow at the moment. If we look at what has happened in other sectors of the economy, the power sector in particular has a very good story to tell about changing our outdated structure to a modern one. That did not happen by accident: it came about through a succession of policy instruments which the Government tabled. The transport industry has been left largely alone in the last 20 to 25 years and it has delivered virtually no change, except perhaps for more diesel on the road. We have to see some interventions that will cause this industry to embrace the scale of the necessary changes. I look forward to hearing the Minister’s response. I am sure that she has been consulting colleagues in the DCMS about what needs to be done in planning. I suspect the answer will be that there will be something in the zero-emission vehicles strategy—I hope so.
Amendment 19 introduces the equivalent of code rights for the installation of charging infrastructure, similar to that in the Digital Economy Act 2017. We have had a number of years of development in digital telecommunications that have justified that. I suspect that we will quite soon find ourselves in a similar position with this. We have looked for evidence that we need this now. I have to admit that it is thin on the ground, but I suspect that we will be back discussing this again before too long. I look forward to the Minister’s response on that. Amendment 34 is another big topic relating to the rights of leaseholders and what they can and cannot request of landlords. We discussed this in Committee, so I will not dwell on it for too long. I have heard that there is a Law Commission inquiry on leaseholds, but that will not report until 2021—rather a long time to wait to resolve this issue when there are people who want the power today to install and pay for charging infrastructure in their properties but whose landlords are obstacles. We need a resolution of this sooner than 2021.
Amendment 35 is similar to that in the name of the noble Baroness, Lady Randerson, on the need to address the issue of non-residential buildings and to make them ready for charging infrastructure. It is crucial to say that non-residential is not covered in the National Planning Policy Framework, while residential buildings are covered. I hope to hear from the Minister what might be done to address that anomaly. It is clear that we will save ourselves money if we think about this earlier rather than later. It is always harder to retrofit rather than install at the time of build. I very much look forward to hearing from the Minister.
My Lords, in moving this amendment, I will speak also to Amendments 23 and 28 in my name. We are returning to the topic of Clause 10. I have perhaps been critical of the Government’s Bill in suggesting that it is a little lightweight and does not contain very much. However, it contains one interesting clause, Clause 10, which sets out that private companies which occupy an important strategic position could be required, through regulation, to make provision for charging/refuelling. It is probably the most interesting part of the Bill. However, the clause is unnecessarily narrow.
In Committee, we discussed the issue of the narrowness of this definition. I know that currently the department’s thinking is that this measure is taken to address the specific issue of range anxiety while on the motorway. I have tabled this set of amendments to ask the Government to think again about why they have chosen to take all this parliamentary time and effort to focus on one element of the transition. It is an important element. All of us who drive electric vehicles and have been on a motorway know the feeling of the charge going down far faster than it does on an A road, and having to look for the next point on your journey where you can safely recharge. That will be better once this has been addressed.
However, this is just one of many instances where the infrastructure and the vehicles need to be in harmony. There are many other ways in which we could bring about an increase in the uptake of electric and zero-emission vehicles if we made sensible regulations to provide the infrastructure in a wider selection of places, the most obvious of which have to be car parks. We know that a large amount of charging will be done either overnight at home when the vehicle is not in use, or perhaps during the day, or it will be done in destinations where people are stopping already to spend time and money and can charge conveniently while doing something else. Given that, car parks would be great places to build out this strategic infrastructure. These amendments seek to amend Clause 10 so that it is not unnecessarily narrow and focused purely on fuel retailers and service stations.
I know that the Minister has been thinking about this issue since Committee, because we did talk about it, but I would put this question to her. Perhaps we can go back in time and ask why it was that the Government decided to embark on a whole Bill process to address just this one narrow question around motorway range anxiety. Would it not have been wiser to have taken a broader approach? I have even gone back to the original consultation document for the modern transport Bill. Five of the seven questions asked in relation to infrastructure related to fuel retailers and only one question at the end asked which other places might be useful. In fact, a large number of respondents suggested that lots of places such as car parks would be very useful. The consultation responses in the summary are quite hard to interpret and we cannot see the raw data, but my gut feeling is that this decision was taken a long time ago and the Government have possibly even forgotten both when and why they took it. We need to revisit the question of narrow scope and Clause 10 being so strangely focused on just one part of the transition. The knowledge is there, but it is simply not enough to put us on the right footing to embrace the transition properly.
I hope that I will hear some words of reassurance, because Clause 10 is so important to the subsequent parts of the Bill that we will come on to. I look forward to hearing the Minister’s response and I beg to move.
With respect, no. The noble Lord’s point is correct. When the Minister started to discuss this amendment the statement was made that Clause 10 “will require”. It does not. Clause 10 is an enabling power that enables regulations to be made at the Government’s discretion subject to consultation and publication of the zero-emission vehicles strategy, which we are all waiting for and I am sure will contain lots of statements about the need to roll out charging infrastructure to places other than motorway service stations. It is wrong to represent this clause as requiring anything and wrong to miss the opportunity to take a wider enabling power now, otherwise we will have to be back here in six months taking it another time.
I can assure the noble Baroness that it is the Government’s intention to use the powers designated in Clause 10, but we want to consult first on exactly which destinations are included in the definitions. It is our intention to use the powers we seek to have in Clause 10. As I said, the powers we seek would allow the Government to—
I am sorry to interrupt again, but could the noble Lord clarify that? The powers will be used and a consultation will be undertaken about which destinations they will apply to, but the Bill is very specific and narrow and says that it will be only large petrol retailers and service station providers. That is the point we are making: it is too narrow. It is not even what is necessary. The Minister has given a long list of private sector movement. Most service stations already have charge points. That is one place where you can find them. We are talking about a much wider, countrywide need, specifically—when we come on to the next group of amendments—a city-led, demand-led process that Clause 10 could enable but does not as drafted.
The consultations I was referring to concern the definition of a large service station. We have not defined that and that is the consultation we want to embark on. Once that consultation has been completed, it is the Government’s intention to use the powers under Clause 10 to make progress and designate areas where we want more charge points.
I am possibly more aware than anyone else in the Chamber of the strength of feeling that we have had during debate on this issue. I understand where my noble friend is coming from but I would be misleading him if I said that I could give the commitment he asks for.
My Lords, I am grateful to the Minister for his response. I am afraid that I cannot say I am any clearer or more reassured as to the logic behind the Government’s position on this issue. It feels to me as if, at some point in the distant past, a decision was made on behalf of all EV owners in the country that long-distance journeys were the problem. Where is the evidence that that is the case? What are the Government basing their policy on? Can we see the consultation document which asked, “What is your biggest fear about driving an electric vehicle?” The only consultation I have been able to find had five leading questions related to large fuel retailers and one open-ended question. The analysis of the responses indicates that there is almost no difference between those who supported mandatory provisions on fuel retailers and those who said, “We want them everywhere”. There is no evidence. I urge the Government, please, before Third Reading to come into dialogue to discuss this clause, so that we can get to the bottom of where the evidence is for it. If we can do that, although I reserve the right to bring back an amendment at Third Reading given the widespread support expressed today, then I will be happy to withdraw my amendment.
(6 years, 6 months ago)
Lords ChamberMy Lords, I shall speak to the amendments to which I have lent my name, particularly Amendment 39. I begin by declaring my interest as an employee of the charity Environmental Defense Fund Europe, which works to find solutions for environmental issues including climate change and air quality.
Today, we turn to Part 2 of the Bill. We must begin by considering the important issue of whether the Bill, as drafted, is fit for purpose. The latest figures show that the UK is failing to get a grip on transport and emissions and is in danger of missing key climate and air quality targets. Meanwhile, we are spending public money and valuable parliamentary resource on debating a narrow and essentially toothless transport Bill. Transport now accounts for the biggest proportion of greenhouse gases in the UK at 26%, according to 2016 figures. While other sectors, such as the power sector, have been successfully decarbonising—spurring new investment, new supply chains, new jobs and more export potential—the transport sector is stuck in a time warp, seemingly oblivious to the fact that it needs to change to meet society’s needs in the 21st century. Those needs include cities free of pollution and a world not exposed to the existential risk of climate change.
Attempts have been made to get the vehicle manufacturing industry to change course. EU standards were imposed on emissions of greenhouse gases and air pollutants. However, rather than responding with investment in new zero-emission vehicles, manufacturers chose instead to sell us diesel cars and install cheating devices. Having been caught once, there is no real sign that, left to their own devices, they are prepared to make a fundamental change. New, innovative zero-emission models are prototyped and were announced with great fanfare, but there is almost no effort to market them and customers find themselves frustrated by long waiting lists as demand outstrips supply. Only strict new policies, introduced in China, have caused the OEMs to rethink their investment and marketing plans—but only for the Chinese market. In Europe, as people are ditching their diesel cars, the only option available to many is to return to petrol cars. That exacerbates climate change and fails to address other sources of air pollution associated with petrol, such as benzine.
Recent analysis of monthly car sales in the UK shows that although petrol and diesel sales have been roughly equal for much of this decade, petrol sales jumped up last month by around 20% while diesel sales fell by around the same amount. Zero-emission vehicles, in the form of battery electric vehicles, were just 0.5% of sales. Hydrogen-fuelled vehicle sales remained so low as to not feature in the analysis, which brings me to today’s amendments. It is abundantly clear that the Government do not yet have a cohesive strategy to bring about a clean transition in transport. There has been talk of a ban on the sale of internal combustion engines in 2040, but I am afraid that that is simply not good enough. Children and old people in our cities are regularly exposed to dangerous levels of air pollution and transport continues to use far too high a proportion of our carbon budgets; that threatens to further worsen our ability to meet our legally binding greenhouse gas targets, which the CCC—the Committee on Climate Change—has already said we are in danger of missing.
Here in London, where pollution is routinely the worst in the country, zero-emission vehicle sales are failing to keep pace with the rest of the country. They were at 38% of all sales in 2011, but have fallen to just 10% in 2017. We need action now, not in 22 years’ time. The Bill, which began life as the modern transport Bill and has been reincarnated as the Automated and Electric Vehicles Bill, addresses a far too narrow set of issues. With just enabling powers, it is an empty vessel with little to no impact, which the lightweight impact assessment makes abundantly clear.
The noble Baroness, Lady Randerson, has sought to address one of the Bill’s clear failings by rightly pointing out that the Government’s approach to providing infrastructure for zero-emission vehicles needs to take into account hydrogen fuel cell electric vehicles, which are mentioned in the Bill, but then there are no further references throughout. This is a potentially important category of vehicles that combines the efficiency of electric motors with hydrogen fuel to extend the range to hundreds of miles per journey. The Bill acknowledges that these are intended to be included under the definition of electric vehicles but fails to take the next step, which is to address the need to consider hydrogen refuelling infrastructure alongside electric charging infrastructure. We strongly support the noble Baroness’s amendments to address the issue and believe that if the Government cannot accept them then they should come forward with their own amendments to address the omissions in the Bill relating to hydrogen fuel vehicles.
Of course, what is really required is an entirely new clause devoted to other forms of zero-emission vehicles, including hydrogen—something that it is impossible to achieve with amendments alone. My Amendment 39, which would add a definition of zero-emissions vehicles to the Bill, relates to Amendment 98 on reporting requirements, which we will come on to. My purpose in tabling Amendment 39 is to try to link the Bill to the Government’s own manifesto commitment that by 2050 almost all cars and vans will be zero-emission vehicles. Achieving that goal will not happen by magic. It will not happen by stating that there could be a ban on internal combustion engines by 2040. It will happen only with a comprehensive policy framework that causes significant change to be delivered in the sector. The private sector must still be in charge of how that change is delivered, but it has shown itself to be incapable of driving the necessary change on its own. Government intervention will be needed. A comprehensive strategy and policy framework is sorely missing.
In the accompanying Explanatory Notes to the Bill there is a sentence that reads:
“The Bill … sets out the regulatory framework to enable new transport technology to be invented, designed, made and used in the United Kingdom”.
As it stands, there is absolutely nothing in the Bill that concretely contributes to the meeting of that goal. I and others in the House have sought to address the Bill’s manifold shortcomings but the narrow drafting has prevented us from tabling all but the most limited of amendments. Nevertheless, in the course of today’s debate I hope we can present our case to the Minister that the Bill is sadly a missed opportunity. There is a very real and urgent need for a much more complex approach to transport technologies. We need to see zero-emission fuels properly addressed, including hydrogen. We hope that the Government will be persuaded to come forward with their own amendments.
My Lords, I will intervene briefly to make what I can only describe as a very trivial point. The Industry and Parliament Trust wrote to me and a number of my colleagues in the last few weeks telling us that there would be a breakfast meeting in the House on 1 May. I do not think that it realises that some of us simply cannot turn up for breakfast meetings on this extremely important issue. I raise this in the Chamber because it is important that it realises that these are problems for some Members. I would have attended because it is a fascinating area of development.
In particular, my interest is in the possibility of applying this kind of technology to lorries, which is what has happened in America. There have been tests. In so far as commercial vehicles are the major polluters, we should be doing everything possible to ensure that they are in the front line of the shift to this technology. As I said, I hope that the Industry and Parliament Trust has that in mind when it arranges these meetings in the future, because it means that some of us are denied the opportunity of the very excellent work that it does on many issues that come before Parliament.
My Lords, the amendments in this group do two things. They change the word “may” to “must” throughout the Bill and they seek to introduce a time limit against which the Government must produce the regulations mentioned in the Bill. As I hope I was able to convey in my opening remarks, we feel that the Bill has not represented a judicious use of parliamentary time. It is incredibly lightweight. Even the things we are debating today are purely enabling powers: there is nothing in the Bill that compels anybody to do anything at any time. I would hate anyone to leave this process thinking that this is in some way a step forward in our becoming world leaders in energy transition; it is anything but. It could be accused of being simply window dressing.
It would be lovely for this Government to end this parliamentary Session by saying, “We have passed a Bill on autonomous, automatic or electric vehicles; aren’t we great?” Anyone who does not then look at the detail might think, “That’s very progressive of them; that sounds very green”, but in reality this is merely a collection of incredibly small, narrow measures which “may” be enacted, should the Secretary of State wish to do so: nothing in the Bill compels anyone to do anything. The intent of these amendments is to at least say that these regulations will be passed; otherwise, why are we here? What are we doing? We have no sight, at the moment, of any draft regulations. That is regrettable, given that the Bill started life as a modern transport Bill several years ago, possibly—I am losing track—yet we still have no detail from the department as to what the regulations will contain. It is simply not good enough, given the amount of money and resource that this is taking at a time when time is so scarce. Given the preoccupation with Brexit, it is, frankly, a dereliction of duty.
So we are seeking to add something to the Bill, otherwise it really is quite a pointless exercise. With Amendment 101 we are saying that the regulations really must be published within a year of the passing of the Bill. I hope there will then be a consultation process on the regulations and a year should be enough time for the Government to conduct that consultation and issue the regulations so that the industry knows where it stands and is able to move forward and make investments. I am sure it will not have gone unnoticed by many in this House that industry is having a rather tough time at the moment making investment decisions in Great Britain. The reasons are fairly obvious, but one thing we can do is give it some certainty around our leadership on green measures and the fact that we are intent on transforming our energy sector, including transport. That would, I hope, unlock further investment, as we have seen in Sunderland with Nissan, in the future of transport, not yesterday’s technologies. This is an important issue to discuss. I look forward to hearing the Minister’s response. I would really like to hear when we can expect draft regulations to be published and when we can see the detail. I would like to hear some reassurances that these are not just enabling powers but there is an intent to use them and to bring those regulations forward. I would like a sense of the timeframe.
It was stated in response to the previous debate that the legal advice is that there is sufficient clarity in the Bill for us to assume that hydrogen vehicles and hydrogen charging are included. Frankly, as with the rest of the Bill, I am not persuaded that that will pass muster. Investors do not have clarity from the Bill. If the enabling powers on the large fuel retailers are to be taken and enacted and we are going to require them to put in electric charging, are we also going to require them to put in hydrogen charging? Is this just an exercise in signalling or are we seriously going to do this? If we are, we need to see those regulations and they need to be changed to “must” rather than “may”, and we need to see a timeline; otherwise, nobody has any certainty and the industry will see investment drying up, as it is already. I look forward to hearing the Minister’s response. I beg to move.
My Lords, this is an extremely important amendment. I say that as a result of going to that dinner last night in the House of Commons which my noble friend on the Front Bench referred to. It was quite an extraordinary occasion. I did not realise how utterly disorganised this whole sector is. We had all the leaders from the industry around that dining table explaining to us what their problems were and in some cases being quite defensive about how they were able to handle those problems. I was shocked because I had never been to a parliamentary dinner where people had become so angry. There was one lady there from the Commons who was so angry that she could hardly contain herself. She had bought an electric-powered vehicle and wanted to sell it off because she was so dissatisfied with the service.
As I watched what was happening, it dawned on me that the people round the table were in two groups. There were those who wanted fiercer regulation, the backing of the law and help in ensuring that a structure was put in place. Others around the table were the deregulators, who did not want any sense of regulation and thought it could be left to the market. My conclusion after two and a half hours at this dinner was that the regulators were winning the discussion because it became obvious that unless there was greater regulation—and, I might say, real regulation, not guidance; there was even a fierce argument at the table about guidance versus regulation—very little would happen and, indeed, the industry could potentially be destroyed.
I went to that meeting last night thinking, “I’m going to have an electric vehicle in two or three years’ time”. I will not now, not after what I heard last night. Anyone listening to that discussion would have drawn the same conclusion. I have great hopes for the future of electric power. I spoke at Second Reading on this matter and strongly advocated the case. I passionately believe that we have to go down that route. But the state has to be prepared to intervene.
The noble Baroness, Lady Worthington, is concerned that it is all “may”—it may not happen, we do not know what will happen at what stage and there is no timetable. Ministers have to be much clearer and stronger in their resolution. It might well be that the discussions with the industry to date have been rather loose. They have not really tried to tie down Ministers in taking decisions on the way forward. Real decisions have to be taken soon; for example, on charging points. In the consultation document there was reference to inter- operability, easy public access, 24-hour service and maintenance, accountability of information on charging points, and standardisation of equipment. All these matters need dealing with now. We do not need delay. I say to the Minister, and I am not exaggerating: this industry could be gravely damaged unless there is a far more open discussion and real intervention by the Government to support it at an early stage.
My Lords, the co-pilot is in charge of this group of amendments. Like other noble Lords, I start by declaring my interest as we approach Part 2 of the Bill. Two and a half years ago I bought an all-electric vehicle with the assistance of a government grant, and with the assistance of a government grant I had a charge point installed on the outside of my home. I say to the noble Lord, Lord Campbell-Savours, that I drive past where he lives in my electric car and in so doing I avoid polluting the atmosphere he absorbs in his Thames-side residence. I am sorry that my noble friend and I were not at the dinner last night, which sounds very interesting and one where a range of views were expressed. I reassure the noble Lord, Lord Campbell-Savours, that I am delighted with the all-electric vehicle that I have and I hope it will not be two and a half years before he considers joining me and others in your Lordships’ House in owning one.
The whole Bill is about giving the Government powers. It is essentially an interventionist Bill. I will explain why we are cautious about this group of amendments, which would change the regulations in this part of the Bill from ones that “may” be introduced to ones that “must” be introduced. I am grateful to the noble Baroness, Lady Worthington, for the opportunity to discuss this matter and I hope to explain why removing flexibility in this way would weaken the Government’s ability to respond to the rapidly developing markets and technology for electric vehicle infra- structure—objectives which I think are widely shared.
Using “may” rather than “must” is quite usual for this type of legislation. A recent and relevant example is the Energy Act 2016, which contains powers to make regulations but not an obligation to do so. The clauses in this part of the Bill are designed to address particular issues in particular ways. In general, the Government want to regulate only if they have to, in particular where there is market failure. We are taking the powers because we might need them and we want to send out the right signals, but we hope it will not be necessary in every case. Removing flexibility by requiring that regulations are introduced could increase the risk of the Government intervening in a way that is unhelpful and at the wrong time. This is particularly important where, as in this case, the market and technology are at early stages of development.
Noble Lords may be aware that the Delegated Powers and Regulatory Reform Committee had the following to say about the Government’s approach:
“We consider that, on this occasion, the Department has provided convincing reasons for Part 2 of the Bill to consist solely of enabling powers. According to the Department, because of the relative newness of electric vehicle charging technology, the factors affecting the installation and operation of charging points are at an early stage of development, and the market for supporting the charging infrastructure is also developing. Accordingly it is not yet clear what areas of regulation covered by the Bill may be required or (if required) what the nature of the regulation should be”.
The Competition and Markets Authority has also shared its view that the nascence of this market is reason to be cautious when introducing secondary legislation in this area, because of the fast-moving nature of technological advances and the need to ensure the healthy development of competition. It advised the Government to be flexible in their approach to implementing regulations so as to be able to react to future market changes, and to be careful not to restrict the ability of markets to adapt.
I hope the noble Baroness, Lady Worthington, was reassured by the policy scoping notes circulated by my noble friend on 3 May, which explain in more detail the conditions in which we would look to introduce regulations. These notes also explain that we intend to introduce regulations under Clause 13 on smart charge points shortly after Royal Assent. However, even in that case, flexibility is still important. We want to ensure thorough consultation prior to introducing regulations and this will be an important process which we do not want to pre-empt. We would not want to close down the possibility that by the end of this process the Government decide that regulations under this clause should not be introduced or that only some should be introduced.
Amendment 101 is about requiring draft legislation for all regulations under this part within 12 months of the passing of the Bill. As I have just explained, the introduction of regulations will depend on the precise circumstances at the time. Producing draft regulations prematurely could be an unhelpful signal to markets, with various unintended consequences, and could stifle innovation.
While I understand and am grateful that the noble Baroness, Lady Worthington, is seeking ways of strengthening the Bill, I hope she might agree that these amendments would in fact reduce its flexibility, which could in turn have a significant impact on the Government’s ability to react appropriately to this rapidly developing market and technology. On that basis, I hope the noble Baroness might feel able to withdraw her amendment.
My Lords, I am grateful to the Minister for his response. I am afraid that I am not at all reassured. This is obviously a new aspect of transport but it certainly did not arrive just yesterday. We have had electric vehicles on our roads for a number of years, with plenty of time for users of those vehicles to tell us that some significant problems need to be addressed if they are to be taken up wholesale.
I am left with the impression that I was correct: this is merely a Bill about signalling. It could be described as greenwash if one was being unkind. In fact, the Minister referred to signals. I feel that there should be a duty on the Government to assess whether they need legislation or not. If they need the legislation, let us pass it; if they do not, we can save ourselves a lot of time, effort and money in assembling here to debate what purports to be a Bill but is in fact simply a set of statements. It will probably be no more impactful on the industry than the Secretary of State’s statements that we are going to ban all internal combustion engines by 2040, which again is, frankly, simply not good enough.
This is a serious issue. Air quality and climate change should be taken as seriously as all things which harm people and are outside their control—their ability to effect change. The Government have a duty to do something about these critical issues for people who cannot act themselves. They must stand up to the car manufacturers and sweep away the problems that are preventing people moving to cleaner and zero-emission vehicles of all kinds. I am afraid that I am not reassured. Nothing has given me any sense of reassurance, other than Clause 13. The Government could have written a Bill with just Clause 13 in it, although that would have looked rather ridiculous. But by the sound of things, that is exactly what we are doing: passing a Bill with merely one clause in it.
I am sorry to say that I am not reassured. I hope that there will be a meeting forthcoming after Committee, where perhaps we can discuss this further, but at this stage I am happy to withdraw the amendment.
My Lords, I shall speak to the amendments in the group to which I have lent my name. The noble Baroness, Lady Randerson, has eloquently explained what it is like to be an electric car user in Britain today. It is certainly not always a pleasurable experience, and a number of serious issues need to be addressed—not least that of faulty charging points.
One of the reasons why we have a problem is that the demand for electric vehicles is not being met by the manufacturers, so there are lengthy queues and waiting lists, but people are hoping that this will be a big market. They are therefore fitting charging infrastructure, but it is operating at a loss: there is no financial benefit for anyone fitting charging points at the moment, because there are insufficient users, as insufficient numbers of cars are sold. That means that expensive infrastructure is put in—sometimes subsidised, sometimes not—and then there is no incentive to keep it operating.
This morning my assistant and I did a spot check on Zap-Map—one of the multiple apps you need on your phone to know where charging points are. Within a three-mile radius of here there are around 100 charging points, but of those, 13 are non-operational. That is just not good enough. What is the point of putting in all this effort to create a network, only for those expensive pieces of kit not to be maintained? If the Bill has any purpose, it is to ensure that at least we can get rid of that irritant. It causes people considerable harm and anxiety not to know, when they turn up in their car with the charge running down, that they are guaranteed to be able to recharge it. That is a big impediment to people taking up this technology.
The Minister said that we might see some regulations under Clause 13 some time soon, so let us also say that we will definitely, and quickly, see some regulations under Clause 9. This is not new technology; there is no risk of it becoming outdated. The charging points are there. People are putting them in, but they are not making money because there are insufficient users, and the points are not being maintained. This is no way to set about meeting the goal that the Government put in their manifesto—that nearly all cars will be zero-emission by 2050. Let us think more about what is happening today, and use this legislative opportunity to sort out the problems that people are experiencing now. I fully support the amendments in the group, particularly the one about a requirement to maintain standards and to take steps to repair faulty charging points.
My Lords, I do not want to be too repetitive, but I have been persuaded by the speakers in the debate so far—and, of course, at last night’s notorious dinner. Again, I hope that the Minister will be able not only to give us warm words but to see whether she can make some progress in tabling amendments that at least partly support the general direction of the debate.
Before the Minister sits down, Clause 11 refers only to the provision of information. What we want is action. If no action is taken as a result of the provision of information, it is a waste of space. Why cannot some of the amendments be taken away by the Minister to her departmental officials before Report—at least those which are in no way affected by technological development—to see whether it might be possible to accept one or two of them? That would immediately affect people’s ability to secure the service that they expect when they call at one of these charge points.
I reiterate that we must at least acknowledge that it is not good enough to have nearly one in 10 of these charge points in the vicinity of this House non-operational. Surely the Government should be doing more to investigate why that is the case and to ensure that regulatory powers are introduced to insist that they are maintained. It is just not good enough. We would not expect that to be allowed in any other form of public infrastructure. We are not asking for it to be in primary legislation, we are asking simply for power to be taken to make regulations to require that they be maintained. Given the Government’s apparent love of these enabling powers, I cannot see why they would not take one to require that the charge points are maintained. They are expensive and people rely on them.
Clause 11 refers to information, as the noble Lord says, and covers reliability. I take the point that it is only information. We think that as people will be paying for access, it will be in the charge point operators’ interest to ensure that the charge points are operational. I absolutely agree that we need to ensure that charge points are reliable and are fixed when they are broken.
(6 years, 6 months ago)
Lords ChamberMy Lords, I rise to speak to the amendments in this group in my name. I cannot see much of a theme between them so I will deal with them separately.
Amendment 95 addresses the issue of smart meters. We all know that smart meters are in the Bill because the Government believe, or have reason to believe, that there could be issues with pressure on the national grid. They are dealing with, or planning to deal with, that pressure through the use of smart meters. My amendment intends to ensure that smart meters really are smart, and very sophisticated. When we have talked about them before, people have said, “It’s really important to charge at night when there is not great pressure on the grid”. In fact—my amendment deals with this—specific groups of people have very good reasons for not charging at night. Some people cannot charge then because they are out at work and have taken their car with them, and some people, such as people with solar panels—I declare an interest because I have them on my house—have a good reason to charge during the day. I am keen to charge my car during the day, whenever possible, because that is when my panels are generating electricity.
I am probing the Minister to find out the Government’s view on this and whether the concept of smart meters can now take that kind of thing into account. It would be frightfully unfair if night shift workers, such as NHS workers, had to pay a higher price for their electricity just because they have to charge their cars during the day. I would hope that we had moved on a long way, technologically, from the days when night storage heaters imposed a blanket situation where you charged at night, dispelled your heat during the day—whether you were there or not—and had no control.
The national grid has assured us that there is enough overall capacity, but I fear that it is similar to the mobile phone companies saying that 95% of the population has a good signal. We all know that 5% of the population lives in a large geographical area known as the countryside, so there are great swathes of the country where mobile phone signal is very poor. Already, the national grid is overreaching full capacity in some areas such as south-east England and many rural areas because there are no links with the grid.
Amendment 103 is intended simply to make sure that the regulations that spring from the Bill are dealt with in the appropriate manner. I have tried to reflect the views of the DPRRC that there should be some affirmative resolutions.
Amendment 68 refers to the need for consultation with fuel retailers. Here, I am probing the issue of the definition, and how the Government will reach a definition, of “large fuel retailers”. The Association of Convenience Stores was rather worried that it would be forced to have electric charge points in inappropriate places. My view is that fuel retailers need to look 10 years ahead. If this revolution has taken place, they will not be selling loads of diesel in even five years’ time, nor loads of petrol. They need to think about how they will diversify. Consultation would help not just to produce good regulations, but to raise awareness among fuel retailers that they will need to consider the future.
When the consultation takes place it will also be important to consider the capacity of the grid. We have talked a lot about motorway service stations. They generally have an electric charging point. In the great and glorious future we hope they will have several electric charging points, but they are usually in the countryside. It might be that the grid does not have the capacity for that in that area. Things such as consultation would help to unravel that spectrum of things and make it clearer for the Government, as well as for those who have to supply the electricity.
Very briefly, Amendment 87, which I have added my name to, relates to data. I will leave the issue of data largely to the noble Baroness, Lady Worthington, as the noble Lord, Lord Tunnicliffe, has spoken already, but I am seriously concerned that this is yet another gaping hole in the Bill. We dealt with it in Part 1 on automated vehicles, but electric vehicles have the same data-collection capacity. There are serious issues that the Government need to grapple with to reassure the public that the data being collected about their movements is dealt with responsibly and not used just as an easy marketing gambit.
My Lords, I will briefly speak to the amendments in my name in this group. Consulting the sector, particularly the charge point providers and operators, is essential to ensure that the regulations we pass are fit for purpose. I am sure that that will be a component of the Government’s strategy, which we wait to see published. I look forward to hearing more about that from the Minister.
Amendment 87, which the noble Baroness, Lady Randerson, mentioned, concerns a huge topic on data from electric vehicles. It is correct that we touched on it under the part of the Bill on automatic vehicles, but it is not present in this part. It would be good if the Government took this away and had a think about it. As a driver of an electric vehicle I often override the question at the start that says, “Do you want to send your data to the company that owns the car?”, simply because I think, “Why should I share it?”. However, there might be very good reasons why you want to share anonymised data to facilitate completely different ways of taxing people’s use of the vehicles.
In the Bill and certainly in the Government’s strategy we have to think about what will happen to the public purse when we move away from a transport system fed by fossil fuels, which generate huge amounts of revenue to the Treasury. As we come off that and go on to electricity we will not see the same revenues at all. Yet there might well be embedded into these technologies a new data source that would enable a different form of taxation based on road use. If we can come up with a taxation system that uses this data, perhaps on an annualised basis rather than the Government tracking your every move, we would be able to use it to inform a new form of taxation similar to the way we do an MoT at the end of the year, so you can pay taxes on that basis. There is an enabling aspect of the data as much as there is concern about privacy and use of data for purposes we were not aware of when we signed on the dotted line for different services.
This is a big topic. We probably cannot do it justice with just this amendment, but I will genuinely listen to and be very interested to hear from the Government about this topic and what they plan to do about it in the protective sense, but also in the use of it in creative ways to ensure we still collect revenue to fund our public services.
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?
My Lords, the amendments in my name in this group include Amendments 57—a rather lengthy amendment, I apologise for that— 74 and 76. Amendment 57 is an attempt to introduce some permitted development and infrastructure rights for the rolling out of charging infrastructure.
Subsections (1) to (3) deal with amendments to the town and country planning order to expand the permitted development rights that apply to charging points being installed off-street. They would remove the restrictions in the order that require that upstanding charging points must not exceed 1.6 metres in height and must be within 2 metres of a highway, and that wall-mounted electrical outlets must be within 2 metres of a highway. Obviously, these regulations were brought in to try to set parameters for the development of the sector. However, we feel that they are unnecessarily restrictive. In the spirit of the Government’s intent that we should not be regulating because it is a fast-moving environment, we should deregulate where we are actively holding back innovation. So we think that subsections (1) and (3) are essential and we would like to work with the Government on addressing them.
Subsections (3) to (10) relate to powers that the London mayor is seeking to address the fact that, as the noble Lord, Lord Borwick, mentioned, the installation of fast—sorry, rapid—chargers on borough-controlled land is falling well behind that on TfL-run land and highways. The table is very interesting. Not only does it show that out of 103 rapid chargers installed, merely four are on borough-controlled land, it gives a fantastic insight into who is moving forward on rapid chargers. I note that the City of London, Kensington and Chelsea, Newham, Lambeth, Bromley and Barking have installed precisely zero, on either TfL or borough land. There is obviously some patchy deployment here in London.
The reason we have taken the GLA and TfL briefings on this issue very seriously is that cities are really significant. Not only are they having to deal with the air-quality impacts of the current use of combustion engines, they do and should have oversight of how this can be rolled out in a strategically planned way. But at the moment, although they are working relatively well with boroughs on the slow and fast chargers, on the rapid chargers they tell us that there is up to 10 weeks of delay before they can get permission to install. Looking at the table, they are simply not succeeding in some places.
The reason I think cities are so significant—I just saw this today on Twitter—is that 21% of global sales of EVs can be accounted for by six Chinese cities. If we think we are in any way leading this, we have to take a long, hard look and be honest about the fact that we are not in the lead. We are trailing well behind China on this issue. Of course, it was air quality and climate change that spurred China into action. It has, through a series of very successful policies—layers of policies—managed to clean up the air of its major cities. There is a lot we can learn from there.
Proposed new Subsections (11) to (14) of this rather lengthy amendment seek to introduce a concept of charging infrastructure rights—wayleaves, essentially—that is intended to mirror those granted under the Digital Economy Act 2017 for telecommunications. This is a significant issue for the country. We need to get this right. As we recognised when we granted these wayleaves for telecoms, this is the sort of thing the Government should be doing to ease this new investment in infra- structure. We look forward to hearing from the Minister on that concept. We have drafted these subsections drawing on the example of the Digital Economy Act, so they are probably not perfectly drafted. I would very much welcome sitting down with the Minister and officials to discuss this further.
The noble Lord, Lord Lucas, is unable to attend so I have agreed to speak to Amendment 74 on his behalf. This is an interesting and important issue. I have read somewhere that on average a car spends about 80% of its time parked at home. If you happen to be lucky enough to have a garage or off-street parking, you can move to an electric vehicle relatively straightforwardly, but not all of us live in that situation. Certainly in urban environments it is less common. You may well be in a leased environment or a block of flats and wish to have infrastructure installed to enable you to move to an electric vehicle, but it is very difficult. Even if leaseholders say that they will pay for the full cost of installing a charge point, and even if it is a simple plug, they often find that their landlords are unwilling to do it—why would they? It is an extra hassle and they are not required to meet that need.
In Amsterdam, I think, they have found that a demand-led rollout of this infrastructure has really helped speed it along. That means that if a customer has a car on order, they write to request that the charging infrastructure be fitted and it is then a requirement that that demand be met. That ensures a linking up of infrastructure with cars to use that infrastructure. This is a really important issue, and I would certainly welcome more thoughts and further consultation on how this can be made to work.
Similarly, Amendment 76 is about making the Bill future-proof, enabling us to take powers to require future residential and non-residential buildings with a defined number of parking spaces to have the necessary charge points or pre-cabling to allow for the installation of charge points. This is anticipating that we will get to the numbers the Government say they wish to get to. The Committee on Climate Change says that 60% of all car sales in 2030 need to be electric or plug-in hybrid, so it will not be too long before we get there, and we need to be planning for this now. We hope this will ensure that new and refurbished buildings are EV-ready. If a car spends 80% of its time parked at home, as has been said, it really is important that we do this. A car spends a further 16% of the time parked at another destination, so having the ability to put this into non-residential buildings is equally important. I hope that that covers everything.
My Lords, I wonder if I might take the Committee back to some elementary aspects here. Under my apartment in London, there is a garage and in the bay next to me there is a plug in the wall, with a wire leading into a motor car. It is an electric car being charged. On the previous amendment, I argued the need for the Government to be far more open about the question of taxation in future, in substitute for the revenue loss arising from less reliance on the fuels of today. We cannot raise revenue in conditions where people simply stick a plug in the wall. There has to be a meter.
Amendment 76 goes on to refer to regulations. I presume it is implied that these are building regulations. I am not sure but I think that is the suggestion. Perhaps in placing this requirement in the building regulations, we should set a requirement to fit a meter even though it will not be raising revenue in the early years. The reason I say that is only because of my experience over smart meters. Are we not changing the rules in some ways on those, because we have learned? We are almost in a period of regret, as we have been discussing in Committee in recent weeks. We think, “If only we’d known that a few years ago, we might have done it in a different way”.
All I am suggesting is that in the event that we were to introduce regulations—building regulations, I presume—we should be thinking at that stage in terms of a meter. You would not just have your plug and socket; you would have a plug, a meter and a socket, but in the early stages the meter would be registering only for your information. The other advantage of it is this. In the event that you have a meter of that nature, with a particular socket, you can be sure that you can raise the revenue by charging a higher rate for the metered electricity than the rate charged for electricity going generally into the residence. There would have to be a differential rate to ensure that you could raise the revenue and you would have to have the equipment. I say: let us go from our experience with smart meters in another context.
Perhaps I may move on to Amendment 74, which has just been spoken to by the noble Baroness, Lady Worthington. Can I express a reservation, since she asked for comments, on subsection (2) of that proposed new clause? It says:
“Any leaseholder who pays for a charge point to be installed as in subsection (1) retains ownership of the charge point”—
they retain ownership of it—
“and all the associated works that the leaseholder has paid for when the lease ends, but the landlord may acquire ownership of them by paying the leaseholder one sixtieth of their cost for each month that remains of the five years since they were installed”.
What happens if you are in a small block with a shared freehold, and someone puts in a meter? Are we saying that the balance of the freeholders have to pay to the person who installed a meter money to compensate them for the fact that they have left the lease at an earlier stage? That would be an unfair imposition on the balance of the leaseholders—if they have a share of the freehold, they are basically leaseholders. They might have 99-year leases but they are leaseholders. If I might say so, that provision is wrong. I think that if you have put in the equipment, you do so at your risk and if you leave, you lose.
I have a suspicion about what would happen. In the flat that I own near to the property of the noble Lord, Lord Young, we have a committee arrangement and I can imagine circumstances in which some members of that committee might say, “I’m sorry but we don’t want to pay to compensate you when you leave for equipment you’ve put in”. I do not know whether it might cost hundreds or thousands of pounds. All I am saying is: let us be a little careful about that provision. I do not want to rubbish the noble Baroness’s amendment because the rest of it is excellent but I would enter that minor concern.
Transport for London and the GLA have been actively trying to consult the boroughs on this issue over a six-month period. I emphasise the fact that we are talking about rapid chargers here, not slow and fast charging. That needs a strategic overview, because those are what enable people to travel long distances and recharge on their journeys, so they are more akin to motorway infrastructure than to charging at home, or at destinations where cars are parked for long periods. This requires a citywide strategy, which is why TfL is so interested in getting one for that particular class of charger.
I well understand the difference here, and the fact that we are talking about rapid charging. If I misspoke, I am sorry: I am referring to the amendment and the proposal to give TfL permitted development rights. I think that the noble Baroness is referring to the mayor’s draft transport strategy, which was indeed widely consulted on and widely welcomed, in work with the boroughs.
Be that as it may, the fact is that the 32 London boroughs and London Councils are strongly opposed to giving TFL permitted development rights. This is a very bad way to start on what we all want to achieve, which is the rapid implementation of rapid charging points. If it is to work effectively, it has to be a co-operative partnership between the GLA, TFL and the London boroughs.
I quote from what I believe is a public letter dated 29 March from the chair of London Councils’ transport and environment committee to the Mayor of London. He begins:
“London boroughs share your enthusiasm and urgency to tackle the poor air quality experienced by Londoners and therefore look to ensure that there is an efficient and effective network electric vehicle charging infrastructure to aid this”.
No, not they are not opposing rapid charging points at all. Quite the opposite—they are very enthusiastic supporters of them. This is my view, not one that has been expressed to me, but one reason that there has been so little installation is that most of the resources that come to boroughs for this comes through what is known as LIP funding which, if I remember rightly, stands for “local implementation strategy”. All the funding comes from the Mayor of London and there has been no provision in my borough and, I think, many others, for the installation of rapid charging points. But we are getting into more detail than I wanted to at this stage, because I know we are moving quickly, and I want us to move on.
I go back to the letter that I was quoting from London Councils. The chair goes on to say:
“We recognise that engagement between TFL and the boroughs on rapid chargers has not been as effective as it could be and are eager to address this issue collaboratively to enable better delivery”.
He goes on to speak about one measure taken, which was to establish,
“a cross party sub-committee solely focused on rapid charging infrastructure. Its task is to enhance the provision of rapid charging points in London across boroughs”,
and to work together with TfL, the GLA and other interested parties. He concludes:
“Collaboration between boroughs, TfL and the GLA is what will deliver an effective and efficient network of charging infrastructure in London”.
I wholly endorse that sentiment, and I hope that all of us on all sides who wish for success here will also endorse it.
I think we all have the same objective in mind, but does the noble Lord concede that 10 weeks to get permission for installation of charging, working with boroughs, is not exactly the swiftest of processes? The amendment that the GLA and TfL seek is merely to take a power to enable that collaboration to be given a bit of a supercharge, because different boroughs will have different speeds and different priorities and it seems sensible to be able to have a citywide strategy. It could help out boroughs which are insufficiently staffed to do this quickly. Ten weeks seems like a long time, no?
My Lords, we must recognise, first, that there is a resource problem for TfL, boroughs and everyone in the public sector. That is possibly the greatest inhibition to rapid implementation. I must say that, in my experience, giving permitted development rights to TfL, while it would be intended to speed things up, would in practice have exactly the opposite effect, because it simply cannot have—this is not a criticism but a statement—detailed local knowledge. I could cite the example of proposing to put a charging point in a parking bay reserved for hearses for the local church—but we can get into too much detail here.
My key point is that the way in which to make rapid progress with rapid charging and all the rest of the infrastructure is not to set up something strongly opposed by the London boroughs, which is going to lead inevitably, sadly, to more conflict and disagreement, more objections and less public support—because that is where the objections will come from. That is not the way to go: the way to go is to give a kick-start, or whatever word the noble Baroness used, and say that we want to see greater active co-operation between TfL and the London boroughs. What we would like to see in particular is not an agreement to pursue permitted development rights for TfL but a requirement—or not a requirement, because we cannot require, but a request—that TfL and the London boroughs and councils, if possible, come back to us for Report, which I know is only a few weeks away, with an agreed amendment, if that is necessary, to achieve the objective that we all share. I think that that is a much more positive approach, and one that is far more likely to succeed in achieving the objective, which I think that I share with the noble Baroness, Lady Worthington, and everyone else, than the one now, which is being opposed by the people who will actually have to do most of the implementation.
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.
The table that has been circulated indicates that, of 103 rapid charge points in London, four have been installed on borough land.
It that not in fact our case? They are doing nothing.
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.
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.
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.
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.
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?
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.
I shall speak to the amendments in this group which stand in my name. I fully support the points that the noble Baroness, Lady Randerson, has made. We have had to crowbar in amendments to enable us to discuss the more strategic need for the Bill. We have probably all sat down with a clerk and argued quite forcefully that the Bill is too narrow and that we need to expand it, but we have singularly failed. Despite its Short Title, it is a very narrow Bill. It seems that electric vehicles are not the purpose—it is all about charging infrastructure—and as we discussed at the start of the debate, zero-emissions vehicles are certainly not what it is about.
My Amendment 98 requires a reporting clause that tries to draw out the reasons behind the Bill, which must relate back to an increase in the use of zero-emissions vehicles. It cannot be a goal in itself to have a lot of charge points dotted around the country—that would be completely ridiculous. We must learn how we have done transition in other sectors. We should take a leaf out of the power sector book, where the Government took the reverse approach to this. We had lots of incentives for new generators of different types of power, but what lagged was the infrastructure of the grid. Here, we have the exact opposite: we are pushing out the infrastructure but have no incentives for the actual vehicles that would make use of it. We felt that the very least we needed to do was have a debate on that other aspect of this. We have to see these things moving in tandem. You need infrastructure and you need cars: infrastructure without cars equals a lot of fine kit but loss-leading, not profit-making enterprises, and companies would come in and there would be a boom and then a bust. That is not what we want or need in this sector. Therefore, a report is needed to require the Government to look back at what they have achieved and at what is happening as a result of this Bill. I suspect we could probably predict the answers, but we would like to require a report on the effectiveness of the Act and its regulations.
The report should include the number of electric vehicles on the road and that have been sold. Essentially, that is an integral part of why you want a charging infrastructure in the first place. There is a great need to ensure that we have the right ratio of charge points to drivers, so the Government’s reporting back on that seems perfectly reasonable.
In proposed new subsection (2)(b), we have asked for a report on the effectiveness of the Act in ensuring that 90% of electric vehicle drivers are within 50 miles of a rapid charger. This comes back to the point that rapid charging needs to be looked at as a strategic infrastructure question. I know that National Grid has published a plan—I suspect we will have to debate how it is paid for—to show that by using the transmission network, which nicely marries up to the motorway network, you can get to the target with strategic investment in transmission-connected chargers. That would be a class of chargers well beyond rapid chargers—super-rapid charging—and would put us at the forefront of this technology, not simply limping along following in China’s wake. A much wider approach must be taken by the Government.
You just have to look at other countries to see examples. We have mentioned China a lot but we should also look to California. It has introduced a successive series of policies to support the shift to zero-emissions vehicles. In October 2017, 340,000 zero-emissions vehicles were sold with a 4.5% market share, compared to the 0.5% market share in the UK at the moment. When California started its policy of a zero-emissions mandate, only one model was on sale; now, there are 25 models, offered by 14 manufacturers. These vehicles are actively available and on the market, not simply seen once in a showroom and then never sold. There are examples out there of how countries and regions have delivered this transition, kicked the car manufacturing sector into action and ensured that the latent demand and support from citizens for this type of vehicle is met by available and affordable vehicles.
So much more needs to be done and there is so little in this Bill. We feel that there should at least be some reporting requirements included that can flag the paucity of the Bill in its attempts to reach the goals that it says it has. I hope that something along these lines will be included.
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.
In the absence of the noble Lord, Lord Lucas, I shall speak to Amendment 59 and the associated amendments in this group. Here we turn to Clause 10 concerning large fuel retailers and the desire of the Government to take powers that may require them to install certain forms of charging infrastructure. We have debated whether they may be electric or hydrogen, and I do not think I feel 100% confident that this clause is sufficiently clear for retailers to know what we mean by charging, and we will need to come back to that issue before Report.
The amendments seek to take the principle of taking an enabling power to require charging and fuelling facilities to be installed and broadens it to include other destination facilities. As we have discussed, for 16% of the time cars are parked in destinations where they could be charging. Those destinations include supermarkets, public car parks, airports, train stations and so on. When we met the Minister and her officials, there was a sense that there is a clear market failure in the category of large fuel retailers which they feel they need to address. If that is the case, it should not be just an enabling power but a power, but perhaps there was a feeling that there is not sufficient evidence of similar market failure in these other areas. However, there may be in the future. If we are proceeding on the basis of enabling powers and not taking powers, I see no reason why we should not include in the Bill a wider power that would allow us to broaden this.
We have to think seriously about the scale on which we are trying to effect change here. This is not about a couple of charging points dotted around the country; this would be a wholesale shift and we want to be at the forefront of it. I feel that wider powers ought to be taken in this area. It is quite unusual for the Lords to say that, but we should look at this again before Report.
I am perfectly happy to concede that should we broaden the powers in Clause 10 and apply the powers set out in Amendment 75 to designated premises for metropolitan mayors, that might be too broad. This is definitely not perfect drafting and perhaps Amendment 75 should not have been included in this group, but it makes quite an important point.
I want to spend a moment reflecting on the role of cities. Chinese cities are driving the revolution in transport and forcing European car manufacturers to change their investment strategies. But people in Europe will not change their strategies unless we ask them to. OEMs treat the world as three separate markets: the US, Europe and Asia. In Asia, they will sell the cleanest cars because they are required to, by policy. Who knows what they will do in the US, because they are currently lobbying to get rid of all the car sellers. In Europe, they may well stay with their strategy, which is to sell everyone diesel and use cheating devices. Let us be honest, they have more or less got away with murder in taking a standard that was passed to try to clean up tailpipe emissions and cheating. Yet here we are, politely asking them if they would mind moving to a zero-emission vehicle manufacturing model. Some of them will try to move but they will certainly follow policy, which is in place in Asia—where they are responding to it—but not in Europe. As we think about our life beyond Europe, it is essential that we put some clarity into this market so that people in Britain can invest and be confident that there is a market here to sell to.
Cities are integral to this. Enabling cities and metro mayors to play a bigger part in this would help to match what China is currently doing so successfully. I want to give the example of Shenzhen, which has just passed new regulations stating that, by 1 May, all new light-duty trucks will be electric vehicles, by 1 July, only EVs will be allowed to be registered as ride-hailing vehicles and, by 31 December, all remaining taxis will be EVs. That is the luxury of a slightly non-democratically planned economy, so I am not suggesting that we go there, but as we take back sovereignty, we ought to put it to good use. This is an attempt to look at the role that metro mayors can play. Urban areas are specifically well suited to this. They suffer the most from air pollution and they have the densest urban geography, which enables electric vehicles to work very well for residents.
Amendment 75 is intended to ensure that metro mayors are given the power they need to enable this transition. I know that this has been led by TfL and the Mayor of London, but other metro mayors fully support these powers, as they all face similar challenges. With that, I beg to move.
My Lords, I want to take us back to Clause 10(2)(a), which states:
“Regulations under subsection (1) may, for example—(a) require large fuel retailers or service area operators to provide public charging points”.
In the real world, can we imagine a motorway service station that would follow this? A stream of cars would come in and get to the forecourt—where there is an existing garage with petrol pumps—and, somewhere in that area, we have to facilitate perhaps hundreds of cars charging at the same time. Some of them might be on rapid charging units for as much as 20 minutes, which is why I say that there will be a lot of vehicles there. There may well not be enough space, so we would be looking at adjacent land. We know that the public interest is served when that adjacent land is made available.
How will we acquire that land? If we want a reservoir, an airport or a railway track, we have compulsory purchase powers; however, some people might argue that using them to aid the financial arrangements of a private operator running a service station is unreasonable. So what will we do to ensure that the additional land, adjacent to these facilities on motorways, is made available for the substantial number of rapid charging units required? I see no requirement to do that in the legislation. We know that it must be introduced by regulations. Departmental officials should be thinking through the consequences of this, to see to what extent the state can intervene to ensure that adjacent land is available. I have referred to service stations, but this could happen for land adjacent to other facilities, such as railway stations—although that is probably different because such land is probably used otherwise for housing development.
It would carry a far higher price than agricultural land surrounding a service station on a motorway, which might be worth only £10,000 of £15,000 an acre. Might Ministers consider asking officials to consider the implications of that provision in this legislation?
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.
This is where the speed of the charger is important. I routinely use a rapid charger at motorway stations, because it is a 25-minute thing where you go and get a cup of coffee, come back out and move on. There can be a rapid turnover in those slots, and it fits very well with the service station model used on motorways.
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.
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.
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.
In the absence of the noble Lord, Lord Lucas, I will speak to Amendment 63 and the other amendments in this group, which all relate to the specification of public charging points.
We need to set standards and provide some clarity for the sector in thinking about how charging points are going to be standardised; otherwise, I fear we will have the same situation we had with phone chargers, where we all had about 16 different chargers in our drawer and none of them seemed to be the right one at the right time. There is already a degree of complexity in the market which is unhelpful, in that there are two types of rapid charger plugs and every charge point has to accommodate those. The amendments aim to elicit from the Government statements on when and how we will see these regulations that set standards come forward.
There is a question about the power ratings. Amendment 64 requires minimum power ratings at public charge points. There are a lot of different descriptors of chargers. There is the slow charger, which is around 2 kilowatts to 5 kilowatts and takes around 12 hours to charge a car. These are usually used at home to plug into overnight. I am told that a fast charger is 7 kilowatts to 22 kilowatts and takes over three hours, and is suitable for some destinations but it would have to be a train station, airport or workplace car park, where your car is expected to be for a period of time. There is the rapid charger, from 50 kilowatts to 120 kilowatts, which is where you get your 25-minute charge. Then there is this other class of superfast charger up to 350 kilowatts, which can charge quite a powerful, long-range vehicle in a very short time—just tens of minutes.
This is an area where—the Government are right—the technology is moving quickly. But we believe that the more the Government can do to provide some standardisation, clarity and regulations that can really help shape the industry’s investment so that we do not get a huge, confusing mass of plugs and chargers of different scales and sizes, the better. Range anxiety normally occurs when you are travelling from your home or place of work a relatively long distance and you have to dock into the rapid or super-rapid charge networks. It is really important that in those instances we set some minimum standards of what we are expecting in the use of those charge points.
There is an opportunity cost. Whenever a charger is plugged in, it occupies a parking space. As we have discussed, the spaces are limited. So we have to get this right and ensure that we have a network that is fit for purpose and is going to endure. I hope that these probing amendments elicit some statements from the Government about the standardisation efforts they are going to undertake. I beg to move.
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.
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.
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.
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.
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.
It is good to reach the final group. With this amendment I seek further information about the Government’s intentions for commencement. It feels as though there could be further delays and that this already not very powerful Bill could become even less powerful if it does not reach commencement until we pass regulations that we might not need to pass. The fact is that nothing in the Bill requires anybody to do anything at any time ever, and commencement seems to be required to wait for that non-event. I am not sufficiently versed in the legal details of Bills, so I have tabled the amendment to find out what it means. Why can it not be commenced immediately upon the passing of the legislation?
My Lords, I thank the Minister for her response. We are caught with this. It is a narrow Bill and therefore I think that it should have a narrow title, although I would prefer it to have a broader title and to contain a broader set of powers. As I said at the start, given the scarcity of time and the importance of spending public money wisely, it is a bit of a waste of everyone’s time to pursue this narrow Bill. We know that a strategy which requires far greater powers is imminent, so that is regrettable. I value the fact that the noble Baroness has said that there will not be any desire to try to claim more than what is being brought forward in this Bill, which does not even address the things that the Government think need to be addressed; it just takes powers for things that they might address. However, we have had the debate.
The Explanatory Notes state:
“The Bill also sets out the regulatory framework to enable new transport technology to be invented, designed, made and used in the United Kingdom”.
That is simply not a reflection of this Bill and perhaps in the future we should refrain from using phrases of that kind and be clearer about what it does and does not do. I think that there is still time to ensure that the things it is seeking to do are actually done well. I look forward to working with the Minister and her officials between now and Report. On that basis, I am happy to withdraw the amendment.
(6 years, 6 months ago)
Lords ChamberMy Lords, I support Amendments 8 and 10 and the associated Amendment 22. I feel that I need to declare my interest as I am an employed member of the Environmental Defense Fund Europe, an advocacy group that promotes solutions to climate change and air quality.
While I am speaking to this part of the Bill, it is fair to say that my interest lies in Part 2, but I feel that the Bill ought to be seen in its entirety as a tool that the Government can use to reach their aspirations to see a huge transformation in the transport sector. We are anticipating and looking forward to the publication of the government strategy, Road to Zero. We hope it is a road to zero, not a road to nowhere; I hope it contains ambition. We hope the narrow parts of the Bill are stepping stones and that additional policies and consultation will be launched with the document, which we hope we will see before Report.
Amendment 8 in the name of the noble Lord, Lord Tunnicliffe, covers a very important aspect. I hope and suspect that the Minister will be able to reassure us that the consultation will indeed be forthcoming in the documents that we expect from the department. It is really important that we have that debate about how we are helping the Secretary of State to ensure that he or she is drawing on the very best information available, as this is quite a complex and technical area. There must be wide consultation on definitions in order for this list to be relevant and useful for every part of the community, including the insurers but also the users of the cars.
On Amendment 10 and the associated Amendment 22, many of us have been playing a game with the clerks in order to enable us to have a debate that is broader than the clauses before us. The short title of the Bill appears very wide but when it comes to it we are allowed only a very narrowed-down debate. I have put my name to Amendment 10 just to be able to talk about standards for autonomous vehicles. I understand that the nature of our debate, because it is linked to insurance, means that it has been mainly about the fear of accidents and safety, but there is an important additional element to autonomous vehicles, which is their environmental value. If we do not consider this at the outset then there is a chance that, no matter how well meaning we are in encouraging the use of autonomous vehicles and transport as a service more generally, we could see a period when these vehicles are overlapping with existing vehicles and we see more congestion, higher quality impacts and indeed greater impact on climate change.
I have a question for the Minister. Clause 1 of the Bill says:
“The list may identify vehicles … in some other way”.
When considering the list, could we interpret that as meaning we will have additional information about the environmental impact of these vehicles? There is an assumption that autonomous vehicles will be cleaner—and indeed that they will be electric, which would speak to both parts of the Bill—but there is no requirement or necessity for that to be the case. In the setting of and consulting on standards for these vehicles, could we include from the outset environmental standards that mean we do not have unintended consequences? Through our efforts to boost this industry, see inward investment and create jobs and financial flows, we do not want inadvertently to encourage lots of highly polluting vehicles using as many cheating devices as software engineers could come up with, in delivering the service through autonomous vehicles. We saw this in our drive to try to increase the efficiency of vehicles that has led to a big push to diesel.
My Lords, I fully appreciate that we will see fast-moving technological developments in this area in future. With that in mind, I understand the intent behind noble Lords’ amendments on safety criteria and standards. It is going to be critical to ensure that automated vehicles are safe for effective deployment on UK roads. As the noble and gallant Lord, Lord Craig, rightly points out, their safety will also need to be maintained throughout the vehicle’s lifespan, as is the case for conventional vehicles today.
There is a long-established process in place for setting vehicle standards, which we have touched on before. The UNECE’s World Forum for Harmonization of Vehicle Regulations is tasked with creating a uniform system of regulations for vehicle design in order to deliver high levels of vehicle safety and environmental protection and facilitate international trade. These UN regulations, of which there are over 140 in number, contain the provisions for vehicles, their systems, their parts, their equipment related to safety and environmental aspects. So they provide the legal framework, allowing member countries such as the UK to establish harmonised international-level UNECE regulatory instruments concerning motor vehicles and motor vehicle equipment. They include performance-oriented test requirements as well as the administrative procedures. The latter address the type approval of vehicle systems, parts and equipment, the conformity of production and the mutual recognition of the type approvals granted by member countries.
The standards by which automated vehicles will be approved safe for sale and use are still being discussed internationally at this UNECE working group, where the UK plays a leading role. We expect them to follow the way in which conventional vehicles have been judged safe to use. I will certainly look carefully at the words of the noble Lord, Lord Tunnicliffe, to help inform our approach in those negotiations. We work with bodies such as the International Organization of Motor Vehicle Manufacturers, which participates in these discussions in a consultative capacity. We think that this is likely to form the basis of the type approval process which automated vehicles, like conventional vehicles today, must pass to be sold for safe use on UK roads.
Based on international standards and our evolving domestic regulatory programme, we expect it to be very clear which vehicles, including their software, can safely operate. The vehicles approved as safe by type approval will then go on to the list, so that our domestic insurance framework is clear which vehicles need which insurance products. The Clause 1 list of automated vehicles will not be the mechanism by which automated vehicles are regulated in relation to safety and security. That will be governed by future laws and technical standards, which we expect to be developed with the appropriate level of scrutiny and consultation, just as current road traffic laws and vehicle standards are developed.
On the important point raised by the noble Lord, Lord Tunnicliffe, about consultation, these changes to domestic legislation, including road traffic laws and vehicle requirements, will generally undergo public consultation and have impact assessments carried out. They are subject to parliamentary scrutiny when amending legislation is laid in the House. Throughout the development of our policy in this area, we have consulted closely with industry. Given the understandable interest in this new area, we fully expect there to be full consultation when we see the regulations appear for automated vehicles. So I agree with the intention of the noble Lord, Lord Tunnicliffe, to consult on the standards that will be set for automated vehicles. That is something that we plan to do, but I am again afraid that I cannot agree that this Bill, which relates to insurance provision only, is the right place for it.
I fully expect that future regulations for automated vehicles will cover many of the points in Amendment 10, including environmental issues, but we think that legislating in any way further, in the absence of the more detailed knowledge of the ultimate international design standards, risks us regulating ineffectively, potentially creating barriers to the use of this technology in the UK and therefore impeding innovation.
As the new technologies reach the point of market readiness, we will be able to set and define the standards, both internationally at a UNECE level and, depending on the outcome of the international discussions, domestically as part of our ongoing regulatory programme. As I have said, we fully expect this to be subject to full consultation.
I wanted to ask the Minister whether she thought there was value. I understand that there will be lots of ongoing discussion, but there may be value in taking some enabling powers now so that we can move forward quickly. This is quite a competition among many nations, and it would be a great shame if we were to lose this parliamentary opportunity to take some enabling powers now.
I agree with the noble Baroness that this is a fast-moving industry, and we absolutely want to position ourselves at the front of it. As my noble friend pointed out, I am in an unusual situation of being offered powers to Government. This is a narrow Bill, which I acknowledged at the beginning. We have been trying to ask only for powers which we know how we will use in the future. We have an amendment from my noble friend coming up on that, and it has been interesting to hear people’s views. At the moment, the Bill is focused entirely on insurance, but I will be interested to hear views from everybody around the House ahead of Report.
In Amendment 11, the noble and gallant Lord, Lord Craig, is right to be concerned that vehicles must meet the appropriate safety standards, both before they are sold and to ensure their ongoing roadworthiness. They are important issues that will require attention from the Government, and we certainly expect safety throughout the vehicle’s life to form the basis of future regulation. We do not yet know, because of the technology, the timescale to expect for regular vehicle checks. As the standards have not yet been set, I am afraid that we are unable to introduce those detailed regulations at this time and in this Bill.
(6 years, 9 months ago)
Lords ChamberMy Lords, I am pleased to be taking part in today’s debate. I will begin by declaring my interests. I have taken a role in the international NGO Environmental Defense Fund, heading up its European affiliate. One of our aims is to help to speed the transition to a net zero greenhouse gas emissions economy. My other interest is that I drive a plug-in electric vehicle and know first-hand the joys and frustrations of this mode of transport. Unlike the noble Baroness, Lady Deech, I lease my vehicle, which is one way around the problem of fearing that the next generation will always be better than the one you have. In my comments today I shall focus on two main issues relating to the part of the Bill dealing with electric vehicles: the need to make smart-charging infrastructure mandatory now, and the need for firmer policy to drive investment throughout the charging and EV supply chain in Great Britain.
In my limited experience in the House I have often judged the importance of a Bill by the size of its impact assessment, and unfortunately this Bill gives itself away by the size and brevity of its impact assessment. Clearly more could be done using this parliamentary opportunity. As it stands, the Bill is something of a missed opportunity, and I hope that during our scrutiny we can work with the Government to turn it into a piece of legislation to truly put the UK at the forefront of the revolution in mobility that we are witnessing on a global scale.
The UK is both a large consumer and manufacturer of vehicles. In 2016, 3.3 million new cars were registered here, bringing the total number of registered vehicles in the UK to 37.3 million. The latest manufacturing figures in the UK show that 1.7 million cars rolled off the production line and 2.7 million engines were manufactured here. The vast majority of all cars made and sold are conventional cars powered by internal combustion engines. A recent study estimates that the total number of electric vehicles on the road today across the entire globe is a mere 3 million—fewer than all the new vehicles registered here in one year. As the noble Lord, Lord Birt, mentioned, the total number of EVs on the road today in the UK is around 130,000—just 0.3% of the total number of licensed vehicles.
It is clear that the demand for cleaner vehicles is increasing, thanks to heightened awareness about the impact of transport on the quality of our air and on climate change; the reducing costs of alternative designs; the increasing ranges; and the wider availability of charging infrastructure. However, there are still a number of frustrations that early adopters have to endure, and new legislation to address them is most welcome. Most users will find charging at home the most convenient option. However, the availability of public charging infrastructure is a key factor in allowing extended journeys and helping those in households without off-street parking to enjoy the benefits of electric vehicles.
There are just under 4,000 public charging points in the UK, but the network is poorly co-ordinated and access is very patchy. There is an urgent need for a standardisation of charging regimes. Vehicles are designed for mobility, yet in my experience it is common to travel to new parts of the country only to find that access to the charging infrastructure requires membership of a regional subscription-based club. There is currently no single national database of all publicly accessible charging points, and to access the widest range of points requires the installation of a number of different applications and the cross-checking of a variety of different data sources—a frustrating and time-consuming occupation. I hope that the Bill will address this.
Another aspect of EVs that must be addressed to facilitate their widespread uptake is the need for charging to be done in a smart way, as the noble Earl, Lord Attlee, mentioned. This means providing the right technology and incentives to enable vehicles to be charged at times of day when power is abundant, which usually correspond with when it is cleanest and cheapest. It must be made mandatory for all the charging infrastructure installed to be connected to the internet and capable of receiving and using a data signal about the state of the grid, both in real time and projected forward.
I am delighted that the Environmental Defense Fund has collaborated with the national grid and WWF and catalysed the publication of a live data feed that already provides this data for the UK via an open source API. I am even more delighted that information about the carbon intensity of power is increasingly available on a European and international scale, thanks to the incredible talent behind electricitymap.org. These data feeds clearly illustrate that all power is not created equally: there are times of the day and year when it is much cleaner, thanks to the mix of generating sources on the system. In order for electricity to be used sustainably for transport, it is imperative that we look at the issue holistically, ensuring that the extra load on the electricity grid is timed to take advantage of cleaner sources of power. That will help us avoid the need for costly and dirty back-up sources of power when demand is high. The technology to do all this already exists; the Bill does not need to rely on secondary legislation to make it the norm. We can and should do it now in the Bill.
There are many other issues which we will surely touch on in Committee, including enabling consumers to add the cost of charging their car to their utility bills regardless of where they consume the power, and the need to ensure that planning regulations and building codes properly integrate electricity charging infrastructure into all new developments of all types and scales—something to which the noble Lord, Lord Brooke, alluded.
I turn to my second point about zero-emission vehicles: the need for firmer policy to guide investment in the necessary infrastructure and supply chains. In the industrial strategy, the Secretary of State, Greg Clarke, stated:
“Britain is extraordinarily well-placed to benefit from”,
a,
“new industrial revolution. We are an open, enterprising economy, built on invention, innovation and competition. Our universities and research institutions are among the best in the world. We have a deserved reputation for being a dependable and confident place to do business, with high standards, respected institutions, and the reliable rule of law”.
All that is true, in particular the last point about our use of the rule of law in driving change.
However, we are the home of the Industrial Revolution, and we still get about 70% to 80% of our primary energy from fossil fuels. We are making progress towards decarbonisation but there is still a long way to go. The Government’s clean growth strategy still projects that we are not on track to meet our fourth and fifth carbon budgets in the next decade, and the chief culprit for that is transport emissions. On air quality, too, we are failing to meet WHO and EU standards. Our cities are making us sick and we are failing to move sufficiently quickly to bring down emissions of pollutants. Clearly, more needs to be done and can be done. Today we start debating a potentially very important Bill, using scarce public resources and parliamentary time—but we are merely discussing enabling legislation. Nothing in the Bill gives the much-needed policy certainty that investors look to before committing their capital.
If we had tried to build a renewable power sector on the basis of providing some enabling powers about grid infrastructure standards, we would not now be home to a world-leading offshore wind industry and would certainly not be building new nuclear power stations. We do not have a CCS industry in the UK yet, precisely because of the absence of a policy framework. For too long we have relied on increases in renewable energy across electricity, heat and transport. This has failed, particularly in the transport sector, where emissions remain stubbornly high and rising.
Other countries and states have already learned this lesson and taken action. China most recently took action to boost the market for zero-emission vehicles by introducing a mandate that 10% of all vehicles sold in China must be electric or equivalent by 2019, rising to 12% in 2020. This mandate is based on a similar policy introduced many years ago in California and since adopted in nine other US states. More recently, Quebec has followed suit. In Europe, there were moves to introduce a similar policy as the reality of China’s enormous policy shift started to set in and the industry tried quickly to adapt, but the Commission’s proposals were watered down. In the UK we can take up the baton and move to match or even exceed the international leaders in policy-making. That is, after all, one of the things we are good at.
A market-based mandate for zero-emission vehicles would harness the efficiency of the private sector, ensure that support for electric vehicles and their equivalents did not rely on the public purse and kick-start investment that shows some signs of having stalled. The SMMT reports that last year UK car production volumes took a dip, and cited policy uncertainty as one of the reasons. Brexit surely plays a part in this, but so too must the announcement by the Secretary of State, Michael Gove, that we plan to ban the internal combustion engine in 2040. That is too far away to affect investment decisions in a positive way but is certainly close enough to be disconcerting to all those invested in the internal combustion engine supply chain today.
As we found in designing the Climate Change Act, long-term targets are useful only if they are coupled with clear, unambiguous policy frameworks in the near term. I look forward to the Government publishing the Road to Zero strategy, but I must ask the Minister whether she thinks it is credible or proper that we should be debating legislation ahead of its publication. Surely we should make a strategy and then legislate with a bold vision—the kind of bold vision that the noble Lords, Lord Lucas and Lord Birt, referred to our needing.
The Committee on Climate Change has made it clear that the Government need to do more to plug the gap in our carbon budgets. We have failed to adequately address air quality, which is a blight on our urban life. We have all the necessary reasons to act with more conviction than the Bill sets out. I very much look forward to hearing more from the Minister, who I am sure is, like the Government, committed to putting the UK at the forefront of the race towards the modern mobility that we all deserve. I hope that as the Bill passes through our Chamber we will succeed in making the case that it can and must be strengthened.