Draft Electric Vehicles (Smart Charge Points) Regulations 2021

Lord Beamish Excerpts

Wednesday 8th December 2021 General Committees

[Mr Kevan Jones (North Durham) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Robertson. I have a few general points to make that relate specifically to what the Minister said. The present Government have gone into some type of academic competition to see who can be greener than green, and they have set the ambitious target of 2030 as the date when no non-electric vehicles will be sold. However, let us be realistic; most of our constituents do not buy new cars. They will be reliant on petrol, diesel or hybrid cars for quite some time. Certainly a lot of my constituents, and others in rural communities, rely on heavier vehicles—diesel, mainly—for work, farming, and other things.

I have not yet seen a technology that is going to replace some of those vehicles. We all need to be realistic, and although the Government’s ambition is to be lauded, the reality is that 2030 will not be a sudden cut-off date whereby everything is going to change. That will not be the case—in certain areas, diesel, hybrid, or alternatives such as hydrogen-powered vehicle are going to be the answer rather than electric vehicles.

The Minister talks about the consumer. In certain areas—take North Durham and Easington for example—it may be easy for someone to install a charging point in a leafy, detached or semi-detached house, but in a terraced street in Horden or Craghead, how are we going to install an electric charging point without a succession of cables running across the street to charge people’s cars? I do not think enough thought has gone into this. Many people will have to rely on public charging points rather than installing them in their own homes.

The same applies to inner cities, to people living in blocks of flats, for example. Are we to have cables dangling from a six-floor tower block down to an electric car in the car park? Of course not. If we are to get to a situation where we have only electric vehicles, how are people going to access those charging points? That brings us on to the issue about competition, because those individuals will not have a choice to install a charging point at home and then look for the cheapest tariff. They will be reliant on going to a garage, a local council facility or some other body that sets up charging points. They could be at a disadvantage, because they will not be able to shop around for the cheapest tariff. That needs to be thought about as well. There is not just the added cost, for many of these people, to acquire an electric vehicle, which they may not do for many years. As I have said, many of our constituents do not buy brand-new cars—

[Mark Pawsey (Rugby) (Con)]

The right hon. Gentleman is talking about people—often living in terraced houses—being able to charge their cars. Many of them will be able to charge at work. There are enlightened employers who are providing charging points. I will give as an example Cadent, which is setting up in my constituency a new office development where there will be charging for people at work. There are ways of getting around this issue.

[Mr Jones]

I applaud those employers, but let me examine what the hon. Gentleman is suggesting. Let us say that someone lives in Stanley in my constituency, in a terraced street in Craghead, and they work at the local Asda supermarket, for example. Certainly they could drive their car there, but will all employers be queuing up to provide charging points? A lot of charging points would have to be developed. Actually, only certain people will be able to access such provision. Some enlightened employers may well provide charging points, but we need to think about the individuals I am talking about, because there is going to be a poverty trap for some of these individuals, who will not have the choice to go for cheap tariffs or deals on their electricity accounts, because they will not physically be able ever to put in a charging point at home. That needs to be thought about.

Another issue is that local authorities and car parks are putting charging points in car parks, but some of them have cut-off times when those car parks are closed, for perfectly good reasons, so they will not be open to constituents who do not have access to charging points at home. That will be a particular issue, I think, in rural communities.

[Mary Robinson (Cheadle) (Con)]

The right hon. Gentleman is developing a really important point. Has he considered the possibility for the future of people using community charging points? In exactly the same area that he describes in his constituency, a member of the community might be able to rent out their own charging point to enable those who cannot put one on their own property to use that community one.

[The Chair]

Order. Before we continue, I point out that we are getting a little wide of the motion, which is about the actual make-up of the points, which involves smart functionality and the specified cyber-security requirements. I have let this debate go on for a few minutes, but perhaps we could get back to the main point in just a moment.

[Mr Jones]

I would not challenge your ruling, Mr Robertson, but the point is that it is the smart technology that allows people to get different tariffs and cheaper rates, and the people I am talking about will be at a disadvantage.

The hon. Member for Cheadle makes a good point, which I would support; I would have no problem with what she suggests. But again, will people have to drive and leave their car overnight at a community charging point in order to get the cheaper rates from that smart meter, rather than having access to them? I doubt whether they will do that, because there would be security issues in relation to the vehicle and things like that. However, the initiative that the hon. Lady suggests is a good one.

Before I go on to security, I will talk about wi-fi, because it is a related issue in terms of smart technology. The explanatory memorandum says:

“Charge points will rely on a network connection to meet the smart requirements within the legislation, for example using Wi-Fi.”

That is great—if people have access to wi-fi. As my hon. Friend the Member for Wythenshawe and Sale East said from the Front Bench, it is patchy, to say the least, in some areas and certainly in rural communities. If we are not careful, it will mean that parts of the country, especially rural communities—I know certain parts of my constituency where wi-fi connection is not good at the best of times—might be disadvantaged, because they will not be able to connect their smart meter to the wi-fi network.

It is okay to agree on the regulations, and I will come to electricity grids in a minute, but there has to be a holistic approach to how things will work. I accept that if someone does not have access to wi-fi or the coverage is intermittent, the meter will still work—that is what the regulations say—but some people will be put at a disadvantage. Again, that needs to be thought about.

I turn to cyber-security. I accept that the regulations say that cyber-security needs to be taken into consideration, but I have a direct question for the Minister. Who is monitoring the components that are going into the smart technology? Following Huawei’s involvement in the telephone network, we found that there could be—I know there is a lot of nonsense said about it—an issue with cyber-security because of the components. I would like to understand who is monitoring the components going into the smart meters, because otherwise we could open up our networks to potential cyber-attack.

I would also be interested to know what the market is, because one of the issues around Huawei was that the Chinese had come to dominate the market over successive years, as Huawei and two other companies were providing part of the technology. Do we have robust enough components and smart metering companies providing the technology, to ensure that there is a real market in which the consumer has choice, which obviously gets cost down, and, more importantly, that there is investment in technology and cyber-security?

The regulations say that the Department for Digital, Culture, Media and Sport looked at this issue. I would be interested know whether the components and structure of smart meters have been looked at by the National Cyber Security Centre to ensure that not only the components but the technology and how it works are as robust as possible. That could lead to a vulnerability: if someone got into a network and could close things down or disrupt them in some way, that could have a devastating effect like we have seen recently in the United States, where there was cyber-hacking of the petrol network that supplies fuel. The principle is the same. There, the hackers got in and stopped the pumping of petrol through pipelines. An equivalent of that would be if someone could get into the network and disrupt charging points. Their maintenance and ensuring that the components are safe will be very important for the future; otherwise there could be vulnerabilities, which would be an issue.

Finally, I want to talk about the resilience of the network. As my hon. Friend the Member for Wythenshawe and Sale East said, it is fine to have electric vehicles and charging points, but it is no good having an electricity grid that is not robust, as we have seen in parts of the north-east in the last few days. People did not have electricity for 10 days, with some even experiencing their 11th or 12th day without electricity. Again, this is important, and I would like to understand how the issue will be linked to the urgent need to look at the resilience of the electricity grid system, as I have called for this week.

I do not oppose electric vehicles, but we need to get realistic about how quickly this will happen and how safe it will be. More importantly, we should not end up with a two-tier system whereby only some consumers have access to cheap electricity for charging.

[Grahame Morris (Easington) (Lab)]

I want to briefly raise an important point about that disparity, particularly in relation to people who are less well off. My understanding is that VAT is applied to electricity drawn from community charging points at a rate of 20%, whereas if someone is fortunate enough to have a charging point on their drive, VAT is payable at only 5%. That makes a massive difference. I stand to be corrected, and I look to the Minister for guidance. It is an issue that should be of concern to us all.

[Mr Jones]

My hon. Friend raises a very good point. If that is the case, it is another example of a market where those who can afford least will pay more. That cannot be right. In the gallop towards the nirvana of net zero that the Government are trying to achieve, we cannot create situation where markets will be fixed so that those who can least afford to pay will pay more. Our considerations should not be just about charging points but the whole issue—network security, affordability and some practical issues about where these charging points will work and where they will not.

[Trudy Harrison]

I fear that we strayed considerably from the technical aspects. As interesting as it was, I recommend that those interested perhaps attend Westminster Hall debates for a comprehensive discussion on the wider aspects of EV charging.

To respond to some questions, the regulatory requirements are aligned with the British standard for energy smart appliances PAS 1878 and build on relevant existing international and European standards. I am more than happy to write to the right hon. Member for North Durham with a comprehensive response on the cyber-security aspects.

On charging, there are 26,000 publicly available charge points, of which 4,900 are rapid chargers. We know more needs to be done, but we are working with local authorities, and I encourage Members across the House to work with me to help their local authorities roll out the necessary charge point infrastructure, which must match, as the hon. Member for Wythenshawe and Sale East said, the considerable interest in electric vehicles.

The draft regulations are an essential step in ensuring the success uptake of electric vehicles and, therefore, the decarbonisation of transport. They are particularly about the technical capability to take part in smart charging and assist with managing the electricity system, while saving money on energy bills. This is the first step.

[Mr Jones]

Will the Minister give way?

[Trudy Harrison]

I am afraid I will not, because I know votes are imminent. Work will continue so that consumers can fully access smart benefits and participate in the transition to a flexible system.

[Mr Jones]

On a point of order, Mr Robertson. I thought the purpose of scrutiny was to ask questions that the Minister responds to. She is just reading out the civil service brief in front of her, which is not good enough.

[The Chair]

It is not for me to decide what the Minister says.