Ultra Low Emissions Vehicles

James Heappey Excerpts

Wednesday 1st February 2017 Westminster Hall

[James Heappey (Wells) (Con)]

It is a pleasure to serve under your chairmanship, Mrs Moon. I echo the words of my hon. Friend the Member for Taunton Deane (Rebecca Pow) in congratulating my hon. Friend the Member for South West Bedfordshire (Andrew Selous) on securing the debate.

I agree with all that has been said about the need to promote ultra low emissions vehicles. It is clear that we have to do so to meet the carbon targets that we have committed to and because air quality is increasingly featuring in the public conscience. Court cases about air quality may force the Government’s hand more quickly than the requirement to meet our carbon plans.

Our plans to reduce transport emissions by 2020 are already quite challenging. The Energy and Climate Change Committee, on which I previously served, produced a report that looked at how the Government are progressing towards meeting those targets. It was apparent that hitting the targets we set for 2020 will be very difficult indeed. The transition to biofuels will help, of course, but there are real challenges to achieving that transition, given the capability of some of the cars currently on the road. Obviously the quickest way to meet those targets, both for 2020 and beyond, is to adopt ultra low emissions vehicles.

The technology is hugely exciting. When the Select Committee visited California just before we finished compiling our last report, we visited Tesla. Seeing the vehicles there, I came to understand that they are no longer golf carts or milk floats; they are proper cars that will really excite people the world over and will achieve significant saturation, even if the market is left to its own devices. A small plug: I am delighted that Tesla is going to come and speak to the all-party parliamentary group for Globe UK, which I chair, in a few weeks’ time to explain its vision to colleagues in Parliament. Of course, other manufacturers are doing great things, too—it is not just Tesla—but I have seen that factory, and what it is doing really is very impressive.

The argument for such cars is compelling. They are not milk floats. They have all the gadgets and oomph—I think that is the technical term—that cars need to turn the heads of proper petrolheads. They are also amazingly cheap to run. Of course, they now accelerate like proper cars and have all the gadgets inside like proper cars, but it is the fact that they can run for hundreds and hundreds of miles for pence that makes the real difference.

I agree with colleagues that the existence of a second-hand market is important. As my hon. Friend the Member for Taunton Deane rightly said, the Government should focus their attention on really screwing down on the fleets to ensure that they are aggressively encouraged to become ULEV fleets as quickly as possible. Vehicles are invariably in fleet service for only a very short time—a year or two—and it is those vehicles that filter through to the second-hand market most quickly.

The Government need to address three barriers to the roll-out of electric vehicles, which the Minister has heard me talk about previously. First, we need to get the charging network right. The challenge is not the charging network at service stations on motorways and trunk routes, because service stations all over the country now have electric charging points. Nor is it the charging network on driveways at people’s homes, because the Government’s excellent grant scheme ensures that when someone buys an electric vehicle they can install a charging point on their private land. It is residential curbside charging, particularly in areas of high population density. If someone goes out in any direction from here, it will not be long before they find high concentrations of people living with no private parking. Having a curbside charging network—probably buried in the curb stone—would be an extraordinary infrastructure project.

[Rebecca Pow]

My hon. Friend is making a serious point. Is that not where the hubs that I talked about could be useful? We could have hubs in various areas in cities so that people do not need to park and charge on the curbside; they can go to the hub, which they join on a membership basis.

[James Heappey]

I, too, had the pleasure of meeting EV Hub, and its initial model focuses on commercial fleets. The reality is that, if every vehicle has to go via one of those hubs when it leaves its parking spot each morning, the scale of the demand will be unworkable. We have to find a solution to curbside charging for those who do not have off-road parking of their own.

We also need to find a way of incentivising businesses to install electric vehicle charging points in their work car parks. When we visited California, a number of businesses made a great virtue of that and let people charge their cars for free while they were working. It would be worthwhile to find a way of encouraging businesses to do that.

The second barrier is the preparedness of the energy system itself: quite simply, do we have the generation capacity to meet the likely increase in electricity need? Is the energy system—the wires and switches—capable of dealing with the clusters in demand when a lot of EVs are charged in one street or neighbourhood at the same time? Is the system smart enough yet? Has it been digitised so that we can mitigate that clustering in both time and space by load-shifting, so that cars are charged when the energy is available at the cheapest possible point? We risk exacerbating the peak energy price in the evening if we do not have that digitised load-shifting capability in place. If everybody comes home and lazily plugs in their car before they go inside, alongside switching on the kettle, cooking supper and all the other things that go on in homes when people first get home at night, demand will increase massively.

Thirdly, people will need certainty about the future tax regime for how we charge people to drive cars. It is blatantly obvious that Her Majesty’s Treasury is not going to give up the receipts it currently gets for fuel duty without a compensating tax in place, and I suspect that that will be very pricey. If we are really going to encourage people to go for electric vehicles, we need to be very clear—perhaps in a Green Paper alongside the modern transport Bill—about what we are thinking of for an alternative way of raising tax from motoring once people transition and we lose the fuel duty.

We can work through all that, but the Government need to be clear about their role in encouraging the transition. The grants that are in place are doing an excellent job and, as a result, people are being encouraged to look at EVs in particular. The more EVs come down in price and, crucially, the more they increase their range, the more people will see them as a viable option and be incentivised by the grants. The size of the grants will be the indicator of how serious the Government are about facilitating the transition.

My plea, however, is that we do not penalise the drivers of diesel cars. I declare an interest as the driver of a diesel car, who thought I was doing the right thing by buying one, because it produced low emissions and was efficient. We have our diesel cars now and, if we are to be incentivised to transition away from them, the Government need to recognise that we did not do the wrong thing by buying them—quite the contrary, we thought we were doing the right thing.

The transition is happening, the technology is compelling and Government intervention is the throttle in the process. To meet the fourth and fifth carbon budgets, however, we surely require the Government to put their foot down fully on the accelerator.

[Several hon. Members rose—]