Automated and Electric Vehicles Bill

Jesse Norman Excerpts

3rd reading: House of Commons & Programme motion: House of Commons & Report stage: House of Commons
Monday 29th January 2018 Commons Chamber

[The Parliamentary Under-Secretary of State for Transport (Jesse Norman)]

I beg to move, That the clause be read a Second time.

[Madam Deputy Speaker (Mrs Eleanor Laing)]

With this it will be convenient to discuss the following:

New clause 2—Public facility operators: provision of public charging points—

‘(1) Regulations may impose requirements on owners and operators of public facilities falling within a prescribed description, in connection with the provision on their premises of public charging points.

(2) Regulations under subsection (1) may, for example—

(a) require owners and operators of public facilities to provide public charging points;

(b) require owners and operators of public facilities to work with local authorities on the provision of public charging points;

(c) require public charging points to be available for use at prescribed times; and

(d) require services or facilities prescribed by the regulations to be provided in connection with public charging points.

(3) In this section “public facilities” means—

(a) supermarkets;

(b) public car parks;

(c) airports;

(d) train stations; and

(e) such other public facilities as prescribed in regulations.’

This new clause would provide the Secretary of State with the power to make regulations requiring owners and operators of certain public facilities to work with local authorities to provide public charging points and to ensure that public charging points are maintained and easily accessible to the public.

New clause 3—Charging points strategy: public transport and commercial vehicles—

‘(1) The Secretary of State must, within 12 months of this Act receiving Royal Assent, lay a report before Parliament setting out a comprehensive UK charging points strategy for public transport and commercial vehicles.

(2) The report must, in particular, consider the establishment of charging points for—

(a) buses;

(b) electric bikes and other mobility vehicles;

(c) haulage vehicles;

(d) commercial vehicle fleets; and

(e) such other public transport and commercial vehicles as considered relevant by the Secretary of State.’

This new clause would require the Secretary of State to set out a strategy for establishing charging points for public transport and commercial vehicles.

Government amendments 1 to 3.

[Jesse Norman]

Following a fruitful debate in Committee, the Government decided to table new clause 1 to part 2 of the Bill. Smart charge points will play a vital role in managing the demand on the grid created by charging electric vehicles. Estimates from the national grid suggest that the increase in peak demand caused by electric vehicles could be significantly reduced by smart charging. Less electricity generation and fewer network upgrades would be required, thereby reducing energy costs and costs to bill payers. Smart charging can not only ensure that vehicle owners receive the required amount of electricity within the time required, but adapt power flow to meet the needs of consumers and various parties in the energy system.

[Sir Greg Knight (East Yorkshire) (Con)]

I support the new clause because smart charging is the way forward. Filling station owners currently need to display the price per unit of their petrol, diesel and liquefied petroleum gas on a large sign, so that motorists can decide whether to go to that particular station before they enter the forecourt. Does my hon. Friend agree that it is essential that electric charging points are required to display similar information?

[Jesse Norman]

I certainly agree that consistency in the presentation of information is important, and I take my right hon. Friend’s wider point about whether such information should be displayed in the same way as petrol prices. He makes a valuable contribution to the debate.

[Sir Hugo Swire (East Devon) (Con)]

One of the most frustrating aspects of filling up a car is the tax on top of the cost of the fuel itself. Do the Government have any intention to levy any form of taxation on electricity bought at petrol stations?

[Jesse Norman]

My right hon. Friend will be aware that we have already wandered quite far outside these narrowly defined amendments to a tightly defined Bill. I am not going to comment on future Government policy.

[Mr Jim Cunningham (Coventry South) (Lab)]

Jaguar Land Rover builds its cars in my constituency, and Geely, which makes black cabs, has also invested a lot of money. What sort of consultation has the Minister had with those companies and, more importantly, with people who run small garages?

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[Jesse Norman]

The hon. Gentleman refers to a variety of groups. I met the chief executive of Jaguar Land Rover only a few months ago. My colleagues are regularly in touch with representatives of fuel retailers, and the same is true for the other group that he mentioned.

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[Helen Goodman (Bishop Auckland) (Lab)]

I understand the purpose of new clause 1, which has good intentions. I am sure that the Minister has considered the implications for privacy and personal data, so will he explain how that will be secured under this system?

[Jesse Norman]

A considerable amount of work is being done in the United Nations Economic Commission for Europe on how data is to be handled in terms of safety on the autonomous vehicles side. As for the electricity side, there is no reason to think that the protocols that are being developed will impinge upon privacy, but that remains a matter for definition in future secondary legislation.

[Sir Oliver Letwin (West Dorset) (Con)]

I am grateful to the Government for bringing forward this new clause, for which I argued in Committee, and I think the drafting is appropriate. The answer to the question asked by the hon. Member for Bishop Auckland (Helen Goodman) is that the data transmitted will be highly aggregated and will be used by the grid and DNOs to manage the system better. It is important that the Government persist with this change, because it alone provides the basis for the kind of interactivity that we need between electric vehicles, as a latent battery for the country, and the grid.

[Jesse Norman]

As I am sure the Secretary of State will say on Third Reading, we are all in the debt of my right hon. Friend the Member for West Dorset (Sir Oliver Letwin) for his excellent work in Committee, of which this change is a good example.

New clause 1 addresses concerns raised in Committee by introducing a requirement for the continuing transmission of data from charge points to prescribed persons, who could include the national grid and distribution network operators. Consumers will be still encouraged to keep the smart functionality operational once installed, with regulations taken forward only if the information required for effective energy infrastructure planning is not made available. Full consultation will be carried out before regulations are brought forward.

[Jim Shannon (Strangford) (DUP)]

Some people may be worried about whether the grid can cope with the demand from electric car charging. Are there are enough charging points across the whole United Kingdom of Great Britain and Northern Ireland? Is the infrastructure in place so that we can move forward and get the benefits of this sector? There is a skeleton, but are the bones ready?

[Jesse Norman]

This country is publicly recognised as being at the forefront of a group of nations that is leading the way on electric car infrastructure. Something like 11,500 charge points have already been installed, and the Bill provides plenty of scope to encourage and support further installations.

Two further consequential amendments are required to clause 14, which concerns the Secretary of State’s power to create exceptions in regulations and to determine that regulations should not apply to certain persons or things. The amendments ensure that the new clause is fully operative within the Bill.

This change is illustrative of the rigorous and constructive discussion of the Bill in Committee, the members of which I thank again for their time and dedication, which has resulted in a better product.

[Dame Cheryl Gillan (Chesham and Amersham) (Con)]

I did not have an opportunity to serve in Committee, but I am privileged to be the chairman of the all-party group on electric and automated vehicles. Would the Minister care to comment on the latest apps, such as that which allows Tesla drivers to plug in their vehicle when renewables are being used, thereby reducing the cost of electric motoring even further and, more importantly, making electric motoring very, very green?

[Jesse Norman]

My right hon. Friend will be aware that one of the purposes of a smart grid is precisely to allow people to recharge their car at the most cost-effective time. I recently had the opportunity to drive a Tesla, and it is extraordinary how the car is continually updated with patches that can reduce its impact on the atmosphere and improve other aspects of driving in a very green way.

[Mr John Hayes (South Holland and The Deepings) (Con)]

As my hon. Friend knows, the new clause was tabled at my behest, having been prompted by my right hon. Friend the Member for West Dorset (Sir Oliver Letwin) in Committee. Ruskin said

“when we build, let us think that we build for ever.”

What we build in respect of electric charging points is vital. The Minister will be familiar with the RAC Foundation’s analysis in “Ultra-Low-Emission Vehicle Infrastructure—What Can Be Done”, which shows that, although the number of charging points is growing reasonably quickly, the number of rapid charging points is growing much more slowly. Is it not vital that, in his work to build this infrastructure so that it is fit for purpose, account should be taken of the need for more rapid charging points?

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[Jesse Norman]

We must all thank my right hon. Friend—I am sure the Secretary of State will want to echo my thanks—for the careful, judicious and wise way in which he has hitherto steered this Bill and its predecessor, including in Committee. He quotes Ruskin to good effect, and secondary legislation under the Bill will allow us to reflect changes in the market. My right hon. Friend’s general point is absolutely right and, as he well knows, it is part of the purpose of this Bill.

Amendment 1 to clause 13 will provide more clarification about the enforcement of regulations under part 2 of the Bill. It provides for an appropriate civil enforcement regime to ensure that any requirement under the power can be properly enforced so that the desired effects are achieved. The clause gives explicit examples of the expected elements of such a regime, including details about identifying failures of compliance. The amendment adds further detail to what one should expect to be included in regulations to assist inspectors in determining whether a breach of the rules has taken place.

Examples of that detail include taking photographs or removing materials from a site to provide evidence of compliance or non-compliance when inspections are carried out. In general, the Government aspire to be as transparent as possible regarding what they intend to include in regulations, and the amendment adds further clarity on what will be included in the inspection regime.

[Richard Burden (Birmingham, Northfield) (Lab)]

Any initiative to try to expand smart charging has to be good news, but I put it to the Minister that if there is to be a step change in certainty for many drivers, it will be through the expansion of on-street charging outside people’s homes. What initiatives will the Government take to expand that, particularly with regard to the holy grail of wireless charging?

[Jesse Norman]

At the moment, there are many mild yet reducing impediments to buying an electric car, such as range anxiety and the resale amounts that might be achieved. The hon. Gentleman is right to point out the importance of the charging network. As he will know, the Government have put in place substantial funding not merely for the plug-in car grant, but for a £200 million commitment, to be matched by a private commitment, to create a charging infrastructure investment fund that is dedicated to addressing precisely the issues he describes.

New clause 2, which was tabled by the hon. Member for Bath (Wera Hobhouse), understandably highlights many other locations, such as supermarkets and hotels, where it might be appropriate to require the installation of charging facilities. We want people across the country to have the opportunity to make the transition to buying and using an electric vehicle. The vast majority of electric vehicle drivers choose to charge their car at home overnight, but appropriate and adequate provision of public charging is still vital to supporting thousands more electric vehicles.

We understand that regulating for provision in the wide range of areas contemplated in the new clause will not always be the right approach—sometimes the carrot is more important than the stick. The Government already offer a variety of grants, schemes and policy measures to support the installation of charge points, where they are needed, in the types of locations identified. For example, we are committed to placing more emphasis on the delivery of charge points at railway stations as part of the franchising process. Planning policy, and the national planning policy framework in particular, is proving to be an important tool in leveraging infrastructure and future-proofing developments.

[Wera Hobhouse (Bath) (LD)]

That is precisely what we have been saying about making it widely practical for people to consider buying an electric car. New clause 2 would work as not only a carrot but a stick. Given that we need to move forward so quickly, it is important that the Government consider new clause 2.

[Jesse Norman]

By tabling new clause 2, the hon. Lady has placed the issue firmly and properly on the public record. The new clause would require owners and operators of “public facilities,” which is a wide term, to provide public charging points. Those public facilities would include:

“supermarkets; public car parks; airports; train stations; and such other public facilities”.

That is a very wide definition, and it does not specifically address the issue of range anxiety. The attraction of targeting large fuel retailers and motorway service stations, as we have done, is that doing so precisely addresses concerns about range anxiety.

[Jim Shannon]

The hon. Member for Bath (Wera Hobhouse) refers to charging at supermarkets and public places. What has been the response from the supermarket chains? Has the system had private buy-in? Do we have figures indicating that the supermarkets want to be part of this system, and will the Government encourage them?

[Jesse Norman]

The key point is that we must allow the market to operate and require installation only in places where we can be certain that it will serve a public purpose. That is the balance that the Bill is designed to strike. Many supermarkets, of course, will regard fitting charging stations and charging points as a competitive advantage, and the same will be true of the other locations set out in new clause 2.

In addition to the measures I have described, enhanced capital allowances have also been introduced as a tax relief for companies that support the development and installation of charging equipment for electric vehicles. The first-year allowance of 100% allows businesses to deduct charge point investments from their pre-tax profits in the year of purchase. As a result of those measures, and because of the opportunities in this new market, the private sector is increasingly taking the lead, with chargers going in at destinations including hotels and supermarkets.

[Dame Cheryl Gillan]

I appreciate that the Minister wants the market to apply, but London Underground owns the car parks at my stations in Chesham and Amersham. What incentive can he give London Underground and the Mayor of London to install more charging points in those carparks? My constituents do not have a single vote for a member of the London Assembly or for the Mayor of London. Without a carrot or a stick, there is no reason for them to install the charging points. Can the Minister help?

[Jesse Norman]

My right hon. Friend is talking about a democratic deficit as much as a failure of public policy to seize the opportunity. Unfortunately, as she knows, the Mayor of London is outside my Department’s policy remit and has separate devolved budgets. She makes the wider point well that there is a democratic gap that means that the Mayor of London cannot be held to account for such actions.

As a result of the measures that I have described, the private sector is taking the lead. Further to our consultation, we have suggested that it would be more appropriate to mandate provision at sites, such as fuel retailers and service areas, that are already invested in providing services related to vehicle refuelling. By that means, we can address concerns about range anxiety without placing regulation on others that might be unnecessarily burdensome and expensive to comply with.

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[Mrs Hodgson]

No, I am just trying to lighten the mood. It is very important that such consumers have a good experience if society is ever to make the transition to electric vehicles that we all hope to see.

I rise to raise briefly some points about three areas of part 2 of the Bill—clause 10, clause 9, and clauses 11 and 12—each of which I will address quickly. From speaking with Nissan, I know it is welcome that the Bill intends to impose requirements on large fuel retailers and service area operators “within a prescribed description” to provide public charging points. However, it is important, for all the reasons we have heard expressed so eloquently tonight, that this prescribed description is as ambitious as possible and is used in such a way as to deploy the electric vehicle charging infrastructure to its maximum potential. I therefore hope the Minister will elaborate further on how the Government plan to make sure that the expansion of this infrastructure is done in a sustainable, sensible and joined-up manner that does not hinder future growth.

Another aspect of ensuring that this important infrastructure works in the right way is ensuring that electric vehicle charging is open access and not restricted to members of charging schemes only or, as we have heard, to people with certain types of plugs. It is important as this infrastructure rolls out that it does not become a patchwork of varying payment methods, membership schemes and plug points, but instead is accessible to all to help encourage more people to make the move or the leap to electric vehicles. Will the Minister assure me that this will be considered as the Bill progresses to the other place?

The last point I want to touch on is smart charging as it is considered in the Bill. Smart charging is a new and exciting innovation and, as the Minister will be aware, Nissan has been pioneering work on vehicle-to-grid technology, where an electric vehicle’s battery can support the grid network at peak times when it is not charging. The Bill makes positive commitments in this area, but it would be welcome if the Minister committed throughout the Bill’s progress to ensuring that the continued development of these new technologies is supported.

Overall, this is a very welcome Bill that I know will have significant effects on Nissan in my constituency and on the wider electric vehicle industry. I hope that as the Bill progresses we will see further strengthening to make sure that, as we go into the future, electric vehicles become more and more accessible to drivers and, as we so desperately need to be doing right now, that this helps to reduce pollution. With those few remarks, I will end, and I look forward to the Minister’s response.

[Jesse Norman]

Let me thank all Members present in the Chamber and those who have spoken for their very helpful contributions to this debate on Report. This is another stage in the extremely constructive process of putting the Bill together. It is pretty clear that the House is united in its ambition to ensure that the UK has world-leading infrastructure to support the roll-out of electric vehicles. Many great points have been raised, and I will try to respond to as many of them as I can in the time available.

The hon. Member for Kingston upon Hull East (Karl Turner), who is not in his place, mentioned security and the importance not just of data security, but of prescribed persons in the Bill. I share the concern he raises, and as my right hon. Friend the Member for West Dorset (Sir Oliver Letwin) said, there are provisions in the Bill for anonymised and aggregated data on the model of smart data used elsewhere. It is also worth saying that the Bill has tightened the security for prescribed persons. Such investigations must be done in accordance with the regulations. Those are defined and will be further defined in secondary legislation.

On interoperability, let me reassure the House that there is scope in the Bill to require all new charge points to offer pay-as-you-go services. My right hon. Friend the Member for South Holland and The Deepings (Mr Hayes), who is no longer in his place, raised the question of the design competition—and rightly so, in this, the Year of Engineering. Let me confirm that it will cover the whole UK, as he and colleagues mentioned.

My right hon. Friend the Member for East Devon (Sir Hugo Swire) pointed out the importance of rural infrastructure. As the Member for Hereford and South Herefordshire, I entirely share that view. He will know that we have made significant investments—in the electric vehicle home-charge scheme, the workplace charging scheme and, as I have mentioned, the charging infrastructure investment fund—to support roll-out, but this is an important issue, and the Government will remain vigilant in ensuring that there is no discrimination against rural owners or potential owners of electric cars.

The hon. Member for Bishop Auckland (Helen Goodman) told us a horrifying story about her own experience. All I can say is that she raises some issues that are related to the particular product she purchased, the Nissan Leaf. I have no doubt that that is being followed very closely in Sunderland as we speak. Whether it is correct or fair to describe the car as having “conked out”, I cannot comment, but as no one would believe the hon. Lady to be a speed demon, there may be a question as to whether there was proper and adequate disclosure. We have seen companies take measures to disclose range, but there may well be scope for greater transparency, of the kind we have seen in other areas. I can also reassure her that the head of the Office for Low Emission Vehicles drives a Nissan Leaf herself.

To answer the hon. Member for Warwick and Leamington (Matt Western), the updated strategy to promote electric cars, which I have mentioned, will come in March. That strategy will, I hope, do much if not all of everything he described and more, and it will of course do so on a considerably faster timetable than the ones contemplated in his new clause.

Let me pick up another couple of points. My right hon. Friend the Member for South Holland and The Deepings characteristically foreswore his natural shyness to give us a tour d’horizon of his time in office once again. He was absolutely right to say that, although we have done quite a lot already, local authorities can go further and also to emphasise the importance of human infrastructure. I would simply mention the work of the Institute of the Motor Industry in formatting and creating level 1 to 3 qualifications in electric vehicle maintenance and repair.

Finally, the hon. Member for Washington and Sunderland West (Mrs Hodgson) asked me whether the Government would consider charging for open access. The answer is absolutely, and that is already being discussed, as I have described. She also asked whether the Government recognise the importance of vehicle-to-grid. Yes, that is absolutely at the centre of what the Bill is trying to achieve.

We have given due consideration to the proposed new clauses in this debate. Although I understand the importance of the issues raised, for the reasons outlined, I do not believe that the new clauses proposed by Opposition Members should be included in the Bill, which I commend to the House as it stands.

Question put and agreed to.

New clause 1 read a Second time and added to the Bill.

Clause 13

Enforcement

Amendment made: 1, page 8, line 12, leave out subsection (3) and insert—

‘(3) The provision referred to in subsection (2)(a) includes—

(a) provision authorising a prescribed person to enter any land in accordance with the regulations;

(b) provision for the inspection or testing of any thing by a prescribed person, which may for example include provision about—

(i) the production of documents or other things,

(ii) the provision of information,

(iii) the making of photographs or copies, and

(iv) the removal of any thing for the purpose of inspection or testing and its retention for that purpose for a reasonable period.”—(Jesse Norman.)

This amendment removes the requirement that entry on to land must be for the purpose of inspecting a public charging point; and ensures that regulations under Part 2 may make provision, in connection with determining whether there has been a failure to comply with a requirement or prohibition imposed by regulations, about the production, removal and inspection of documents and other items.

Clause 14

Exceptions

Amendments made: 2, page 8, line 19, leave out “or public charging points” and insert “or devices”.

This amendment, which is consequential on NC1, enables exceptions from requirements or prohibitions imposed by regulations under Part 2 to be made in relation to devices that are not public charging points.

Amendment 3, page 8, line 22, leave out “or public charging point” and insert “or device”.—(Jesse Norman.)

This amendment, which is consequential on NC1, enables the Secretary of State to make a determination that a requirement or prohibition imposed by regulations under Part 2 does not apply to a device that is not a public charging point.

Third Reading