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Automated and Electric Vehicles Bill Debate
Full Debate: Read Full DebateLord Young of Cookham
Main Page: Lord Young of Cookham (Conservative - Life peer)Department Debates - View all Lord Young of Cookham's debates with the Department for Transport
(6 years, 5 months ago)
Lords ChamberMy Lords, given Network Rail’s safety record over the last 10 years, I would absolutely support that recommendation.
My Lords, as we deal with a set of amendments dealing with handover, it is perhaps appropriate to give my noble friend a break, and I move over from the passenger seat. However, I assure the Committee that my noble friend remains in control.
The transferring of control of an automated vehicle between a human driver and the automated vehicle’s system will be an important factor in ascertaining how a vehicle safely and appropriately operates on UK roads. Straightaway I reassure the noble Lord, Lord Tunnicliffe, who spoke to his Amendment 21, that of course we recognise the need to put in place a proper regulatory framework to ensure both the safe deployment and safe use of automated vehicles—I will say a bit more about that in a moment.
It is likely that the first automated vehicles to reach the market will be able to be used in automated mode only in specific circumstances or situations, with vehicles capable of full automation arriving further into the future. My noble friend Lady Sugg said a little more about that when we debated Amendment 4. For example, she said that these circumstances could refer to vehicles that have been geo-fenced—able to operate only in a very specific, defined area—or to systems that would operate only on motorways and other high-speed roads. It is likely that these vehicles will be designed to allow handover only in these very specific circumstances: for example, from the driver to the vehicle when the vehicle enters that geo-fenced area, and from the vehicle to the driver when it leaves, in a safe manner and when appropriate to do so.
It is anticipated that the relevant international regulations at UNECE level will reflect these limited use cases and handover process. It is possible that these regulations will contain requirements for the vehicle to be able to detect where it is so that the system cannot be used in other situations. These standards and regulations will be 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 or in other public places. They would then be covered by Clause 1.
At the moment, the powers we have are sufficient. We can use existing powers in the Road Traffic Act 1988 to revise existing, or create new, road vehicle construction and use regulations to transpose or reinforce new iterations of the global regulations as they appear. However—I repeat what we have said before during this debate—global regulations for automated vehicles have not yet been decided, and so it is not clear what changes in our domestic framework would be needed at the present time. It would be premature to ask for primary powers in a Bill that is just about automated vehicle insurance without more detailed knowledge of the ultimate design standards to which these vehicles will be held, or without knowing the outcome of the Law Commission review of the existing legal framework —which, again, my noble friend mentioned.
As regards handover of the driving to an automated vehicle, my noble friend Lord Borwick has proposed a different test from that in the Bill: that the handover must not be “avoidable and unreasonable”. These two words would be applied conjunctively by the courts, and the result would be that a person could be found to be negligent only provided “avoidability” and “unreasonableness” were both shown to be present. The Bill’s test makes for a lower threshold on the insurer by placing a stricter burden on the driver not to hand over in situations when it would be inappropriate to do so. While the technological and wider regulatory framework here is still very new and developing, it would be prudent to set a strict standard and relax it if appropriate once more is known. Therefore, in the Government’s view, the original text of the Bill should stand.
To insert “or continue” into Clause 3, as proposed in Amendment 19, would in effect legislate for the possibility of the user having some residual role in the driving task after the handover to self-driving mode is completed. When a vehicle leaves a geo-fenced area or comes off the motorway, it is anticipated that there will be a safe handover back to the driver, and the details of this will be covered by international safety standards. However, my noble friend’s amendment does not fit with the Bill’s definition of an automated vehicle, because this requires no monitoring while the vehicle is driving itself. I hope this explanation reassures him that his amendment is not necessary.
While, as I have already said, I am sympathetic to the intent of the noble Lord, Lord Tunnicliffe, in Amendment 21, we think that we do not need these powers, as the definition of when it is appropriate for the vehicle to drive itself will be covered elsewhere in regulations. I hope that, given that assurance, the noble Lord will feel able not to press his amendment.
Can the Minister expand on where else in regulations these powers will be available?
I think I said when I was speaking to the amendments that at the moment the powers we have are sufficient. We can use existing powers in the Road Traffic Act 1988 to revise existing, or create new, road vehicle construction and use regulations to transpose or reinforce new iterations of the global regulations as they appear. However, as has been the case with other regulations we have debated, on safety and other issues the Government will bring forward the appropriate legislative framework in due course if we do not already have powers under existing primary legislation.
My Lords, the Minister has mentioned the Law Commission report several times. Can he give any timetable for when the Law Commission will report on various issues? I am not just thinking about this one. One report on railway level crossings was completed about five years ago. I know that you are supposed to wait two years after a report has been produced before it is introduced into legislation. However, if one waits three, four or five years, the report’s conclusions may get out of date. I remember threatening the last coalition Government with putting the whole Law Commission report on level crossings down as amendments to a suitable Bill—it would have been about 50 pages long, but that was not the problem—in order to get the coalition Government to do something. My impression is that, because of all the Brexit legislation, everything has come to a grinding halt. I am not necessarily suggesting that the Minister will be able to answer my detailed question, but if he or a colleague could write to me on that, I think it would be a useful subject for discussion later.
I understand that the Law Commission work on the issue that we are debating now is a three-year programme. I am not sighted on the level crossing review, but either I shall write to the noble Lord or, perhaps later on, during one of our debates, we can update the exact timescale of the Law Commission review of the existing legal framework for automated vehicles. Obviously, automated control is not in operation.
I thank my noble friend the Minister for his comments. I think it would be useful between this stage and Report to talk more about the nature of “continue”. There will still be a duty, either on the vehicle to monitor itself, or on the passenger to monitor it; that person will be aware of conditions changing, and there will undoubtedly be differences as a result of a snowstorm occurring. I think the drafting could use some improvement—I am not sure mine is exactly the right phrasing—but I look forward to discussing it with my noble friend. In the meantime, I beg leave to withdraw the amendment.
Automated and Electric Vehicles Bill Debate
Full Debate: Read Full DebateLord Young of Cookham
Main Page: Lord Young of Cookham (Conservative - Life peer)Department Debates - View all Lord Young of Cookham's debates with the Department for Transport
(6 years, 5 months ago)
Lords ChamberI share the noble Baroness’s admiration for my noble friend’s Amendment 30, which puts things in a very simple and clear way and is well worth having in the Bill. As far as the insurance amendment is concerned, I was looking for a way within the narrow confines of the Bill of illustrating the need for the Government to go further now. Even dealing with the subject of insurance, there are matters that need to be discussed now which we may need to bring into secondary legislation to enable things to operate properly. We should make provision for these things to be done in the Bill. I do not have answers to the questions that the noble Baroness has asked. I imagine that, in an automated world, having a dump of the data for the quarter of an hour before an accident and through as far as the machine keeps recording would be a useful way of establishing what happens during an accident; it really ought to be something we are thinking about, even in the narrow confines of this Bill.
I turn to what my noble friend said about motor vehicles. I presume the Bill will somehow, through the atmosphere of legislation, pick up the definition of motor vehicle from Section 185(1)(c) of the Road Traffic Act 1988:
“a mechanically propelled vehicle, intended or adapted for use on roads”.
However, I think the Bill uses motor vehicle in a slightly different sense, as vehicles that,
“are or might be used on roads”—
that is okay so far—
“or in other public places”.
Clearly, we have a different definition of motor vehicle here from the one in the Road Traffic Act. Therefore, we are somewhat adrift; we are dealing with things that might be used in public spaces and therefore presumably might interact with footpaths, crossing all sorts of land; they could include the sort of thing that mows golf courses too, which might very well go automatic, or the farming equipment my noble friend was referring to. If you have a footpath across the land and one of these vehicles is trundling across it, it is occupying a public space at that point; we are encompassing a wide range of vehicles beyond the definition in the 1988 Act. This might be something worth resolving at some stage.
My Lords, the co-pilot is in charge of this group of amendments. As my noble friend Lord Lucas said, our transport networks are becoming increasingly digital. The regulation of the collection, sharing, use and deletion of data will be vital. Several stakeholders, including the insurance industry, have highlighted the need to ensure access to automated vehicle data, not least because it will help determine who is liable in the event of an accident, as my noble friend has just said.
While we certainly recognise the potential value and use of data, especially for vehicle insurers—and the need to look at the subject of data generated from automated vehicles—as with many previous amendments we do not consider that now is the correct time to start making provision for access for insurers, as suggested by my noble friend in Amendment 26. Nor do we believe that this is the right time to consider new offences regarding the deletion of data, as suggested by my noble friend Lord Borwick in Amendment 27. However, I shall seek to give both noble Lords some reassurance.
It is likely that the international UNECE regulations underpinning the type approval system, which allows vehicles to be sold in the UK, will require the use of a data collection and storage system in automated vehicles. In response to my noble friend’s Amendment 26, it is of course important that insurers have access to the data they need in order to establish liability for any accident. I hope that he finds that reassuring. However, to balance the needs of industry and consumers, we still require detailed engagement on which parties will require access to this data and how it should be shared. It is clear that some data collected by automated vehicles, such as location information, may constitute personal data and will therefore need to be handled appropriately—a point made by the noble Baroness, Lady Randerson. Therefore, there is a need to balance the personal privacy of automated vehicle users with the public good, and this is an area that will most likely need to be resolved internationally to help ensure consistent standards.
Automated and Electric Vehicles Bill Debate
Full Debate: Read Full DebateLord Young of Cookham
Main Page: Lord Young of Cookham (Conservative - Life peer)Department Debates - View all Lord Young of Cookham's debates with the Department for Transport
(6 years, 5 months ago)
Lords ChamberMy 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.
Automated and Electric Vehicles Bill Debate
Full Debate: Read Full DebateLord Young of Cookham
Main Page: Lord Young of Cookham (Conservative - Life peer)Department Debates - View all Lord Young of Cookham's debates with the Department for Transport
(6 years, 5 months ago)
Lords ChamberMy 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, I am grateful to all noble Lords for raising the importance of consultation prior to regulations being made using the powers covered by the Bill. It would of course be sensible, and indeed essential, for us to engage with a wide range of stakeholders to ensure that any regulations brought forward under the Bill are fair and proportionate while delivering the changes that will meet the needs of users and greatly improve the charging experience. It will be particularly important to consult those stakeholders that will be directly impacted by any of these regulations.
The Government have a set of good consultation principles—for example, that consultations should be targeted, clear and concise. They were published in 2016 and a copy was placed in the parliamentary Library. These principles were followed when consulting on primary legislation for the Bill and we will continue to follow them. They were updated in 2018 and can be accessed on the government website, GOV.UK.
Prior to introducing any regulations in this part of the Bill, we will engage with all appropriate stakeholders. This is already a requirement under Clause 16(3). Amendment 52, moved by the noble Lord, Lord Tunnicliffe, calls for consultation specifically with charge point operators and vehicle manufacturers. As we explained in the policy scoping notes, under Clause 9 the Government would consult widely with stakeholders on the issue of connection before introducing regulations. This consultation would of course include charge point manufacturers and operators, and vehicle manufacturers.
Amendment 67 in the name of the noble Lord, Lord Tunnicliffe, also seeks to require the Secretary of State to publish draft criteria and definitions of large fuel retailers and service area operators at least six months before making the regulation. Any regulations brought forward under Clause 10 would be informed by consultation with industry, including fuel retailers, motorway service area operators, EV infrastructure providers and operators, and EV manufacturers and drivers, a point insisted on by the noble Baroness, Lady Randerson. She made a valid point that those currently in the petrol retailing business will want to ensure that they have a future. Their business is basically supplying energy to motorists. They will need to react if motorists start using a different form of energy. It would be in their interests to move in this direction.
The noble Baroness, Lady Worthington, raised the point that this might have implications for the Treasury. I will not go there. She also mentioned the possibility of road pricing—another sensitive political issue. I am not going to go there either, but they were valid points.
As explained in the policy scoping notes, the purpose of the consultation would be to seek industry’s views on the definitions of large fuel retailers and service area operators and any criteria for the locations at which fuel retailers will have to make specified provision.
Will that consultation include not just regulation but facilitation? Many providers collect their fuel by road and then dispense it. They have a serious problem connecting with the grid and fitting in with the electricity supply. I do not understand why the Government do not apply here the same arrangements as they applied in respect of telephonic connections, which did something about the problems of wayleaves.
My noble friend is absolutely right. Some fuel retailers may be in remote locations where the necessary electricity supply is not immediately available. Therefore, it would not make sense to oblige them to have charge points if they could not get the power. We have taken that on board. When we consult, we will look specifically at the availability of power supply before deciding whether to make progress.
Clause 16(4) would require the Secretary of State to lay the draft regulations in Parliament and their approval by each House before they are made. I understand the intent of the amendment: to ensure there is enough time for stakeholders to consider and comment, and make their views known to parliamentarians, before the regulations are discussed in the House. However we believe that, given the commitment to full consultation and the use of the affirmative procedure, it is not necessary or proportionate to publish the regulations six months before they are made. There will be many opportunities to comment on what should be included in the regulations throughout the consultation, and a delay of six months from the final draft to a vote in Parliament could adversely affect the delivery of the policy. Regarding Amendment 68, I hope this also reassures the noble Baroness, Lady Randerson, of our commitment to consult fuel retailers about the appropriateness of regulations before they are introduced.
I turn to Amendment 87 and the important issue of data. The collection and use of data from charge points is increasingly important to those who help manage the electricity system. We will need carefully to consider how that data is used and how to ensure data privacy. We are already statutorily obliged to consult on the regulations through Clause 16(3). The consultation will cover the issues referred to in the amendments: who is responsible for collecting the data, how the data is shared, and any limitations on the use of such data. Therefore, we do not believe that a specific amendment on data is necessary. Data security and privacy are essential. Data would be anonymised and aggregated and it could be handled in a similar way to how smart meter data is treated. The noble Lord, Lord Campbell-Savours, suggested that one of the prescribed persons might be the Treasury, so that it could get this information in order to charge motorists. I do not think that is the intention, but I will take advice before I commit myself on it. It is an ingenious thought, which the Treasury may follow up now that the noble Lord has mentioned it.
Amendment 95 is proposed by the noble Baroness, Lady Randerson. She must have a very small carbon footprint if she generates through solar panels the power for her car. The amendment would require night-shift workers and households with solar panels to be taken into account for regulations under Clause 13, about smart charge points. I would hope that night-shift workers might be able to charge at work and therefore benefit from the lower rates, but off-peak is not only at night; lowest demand can now be in the afternoon because of solar power, so it could be the new off-peak—I understand that this happened for the first time in the UK in 2017. We will of course look to ensure that the introduction of smart charge points does not have adverse effects on any groups of consumers. However, we do not believe it is appropriate to specify, and implicitly prioritise, a small selection of people, however important, as the noble Baroness’s amendment seeks. I understand that it is important to take into account different groups of consumers, but as the clause is about the requirements for smart charge points rather than the pricing structures, I am not sure that it is the right place.
On smart charging pricing structures, I hope noble Lords will be reassured that the regulator for the electricity system, Ofgem, has an explicit responsibility to make the system fair for all energy consumers. Amendment 102 in the name of the noble Lord, Lord Tunnicliffe, would extend the consulting requirement for this part of the Bill to ensure that the Secretary of State included the National Grid, large fuel retailers and service area operators. I agree that it is important to consult widely and of course that includes such stakeholders, but we do not think it appropriate to specify in the Bill a small proportion of the organisations that should be consulted.
Amendment 103 in the name of the noble Baroness, Lady Randerson, is about requiring draft regulations in this part to be approved in both Houses of Parliament every time they provide or amend a definition in this Act. Clause 16(4) already requires the Secretary of State to do this for the first time regulations are laid, with exceptions for technical regulations under Clause 9(3) and Clause 13. This is a rapidly evolving market and may require the Government to act quickly. The initial regulations will be subject, quite rightly, to the affirmative procedure, but it may not be appropriate to extend this to every provision or amendment of a definition.
I am grateful to noble Lords for raising important issues. I hope they are reassured that we intend to fulfil existing duties in respect of secondary legislation, that we will consult widely and thoroughly before any regulations are brought forward, and that the statutory obligation to consultation in Clause 16(3) will ensure that we do so. I recognise the importance of proper parliamentary scrutiny when defining terms used in the Bill, as the Delegated Powers and Regulatory Reform Committee noted in its report. My noble friend is considering its recommendations and will respond to the committee before Report and copy this response to all noble Lords who have taken part in today’s debate. On that basis, I hope that the noble Lord might withdraw his amendment at this stage.
My Lords, I shall not delay the Committee unnecessarily. I will study the response with some care. I suspect that we will bring forward an amendment on Report unless the Minister does so for us, because there is something rather special about the timescales. The standard consultation is 12 weeks. The six months that we propose recognises the considerable work that will be required if a fuel retailer or service operator is caught unawares. Either such a provision is needed or the regulations have to be sensitive about time. I hope for a perhaps more in-depth response—I do not want to be rude—which recognises these timescales. Perhaps we can put that on record on Report, even if the Minister is unable to suggest some useful words to add to the Bill.
Before I withdraw the amendment, can I assume that when Amendment 53 is called, we will commence discussion on the original group without Amendment 51? I see nodding from the Whips; therefore, we are all on the same page. I beg leave to withdraw the amendment.
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.
Automated and Electric Vehicles Bill Debate
Full Debate: Read Full DebateLord Young of Cookham
Main Page: Lord Young of Cookham (Conservative - Life peer)Department Debates - View all Lord Young of Cookham's debates with the Department for Transport
(6 years, 5 months ago)
Lords ChamberMy Lords, Clause 10 involves the classic dilemma of taking rights over private property for the greater good. I commend the fact that the clause is there, but whenever such rights are debated, you debate both breadth and reasonableness. I will listen to the response of the noble Baroness, Lady Worthington, on that breadth with interest, because I think there is a case for an incremental improvement in the breadth and power of this clause.
My three amendments are about the other side of the coin: that the regulations should be reasonable. Amendment 27 seeks assurances on the whole matter of how the regulations shall be reasonably applied. Amendment 42 is about notice. We need to be assured that private owners will not be immediately required to do things and that there is appropriate and adequate notice. Amendment 43 relates to the consultation process being appropriate.
My Lords, the co-pilot is in charge of this group of amendments. I am grateful to all noble Lords who have spoken to this group and made the case for seeking to expand the scope of Clause 10 beyond the destinations that are so far defined in it.
The amendments of the noble Baroness, Lady Worthington—Amendments 21, 23 and 28—seek to expand the scope of Clause 10, so that privately owned large car park operators would also be required to ensure provision of charge points at their premises. A number of noble Lords and Baronesses have spoken in support of that group of amendments. It is important that we carefully consider which location should be captured in Clause 10. As my noble friend highlighted in Committee, 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. I seek to reassure noble Lords by giving examples of what is now happening in the private sector.
First, perhaps I can deal with my noble friend’s comment about the London Borough of Kensington and Chelsea. I think it is providing a number of spaces and that the Government are taking the initiative in encouraging it to do better. Indeed, through the Government’s on-street residential scheme, we have just provided funding for 50 additional lamp post charge points to be installed. I hope that is of some reassurance to my noble friend. But we are already seeing the private sector taking the lead, with charge points going in at destinations including car parks and supermarkets, as these locations begin to appreciate the advantages that offering charging facilities will ultimately have in attracting the growing number of EV drivers to their shops or to use their services. For example, NCP, one of the largest car park operators in the UK, already offers charge points at some of its car parks and is investing to grow the number of sites offering this facility.
Electrical vehicle charging points have been installed in car parks at Heathrow Airport and around 500 charge point connectors have been installed in the UK in the last 30 days. The Office for Low Emission Vehicles has also worked closely with the British Parking Association to develop guidance for its members on investing in and installing charging infrastructure.
As I read it, it says that the regulations “may” require. It does not say that they are required. Why, in this particular case, can the Government not simply concede to the amendment? It is not a requirement. It says “may”, so it is up to the Government to decide how they want to proceed.
The noble Lord is reverting to a discussion that I think we had in Committee, when we had a debate on “may” versus “must”.
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.
On that point, if it is the Government’s intention to proceed, then the word “may” is not really required. Anyhow, why not leave “may” in and include the words in the amendment? I cannot see what the Government lose by accepting this amendment. It is totally at their discretion as to what happens.
The Government have made this clear right from the beginning—I shall come on to this in a moment. When we consulted on measures in the Bill we determined that it was most appropriate to mandate provision at sites, such as fuel retailers and service areas, which are already invested in providing services related to vehicle refuelling. That was the basis on which we consulted and the basis on which the Bill was brought forward. What the amendments seek to do, at a very late stage in the Bill, is to broaden the scope very widely, beyond the initial areas we identified, to include a whole lot of others. We do not think that necessary because, as I said a moment ago, the market is responding. These charge points are already being provided in supermarkets and private car parks and the Government want to take powers only where absolutely necessary.
The locations we have chosen, the motorway service areas and the large service stations, are crucial in reducing range anxiety so that drivers can be confident in undertaking long journeys that they will be able to recharge easily and quickly en route. This is an issue that will remain for the longest journey, even with developments in battery technology, so it makes the most sense to ensure that the infrastructure for those journeys is provided for now and in the Bill. We expect that for many journeys range anxiety will fall away as the battery ranges of new electric vehicles increase, reducing the need for recharging every time an EV driver arrives at their destination. For all these reasons, the Government do not believe they need additional powers to regulate in this area.
Does the Minister accept that the problem is not just about range anxiety on long journeys? We also have to cater for people who wish to own an electric car but do not have a drive of their own or space in their domestic circumstances to recharge their car. Such people will rely on possible innovative solutions—the idea of using lamp-posts as charging points may be feasible—but also on access to a charging point in the local car park while they are in work, while they are shopping or, indeed, when they go out to the cinema, for example. They will want alternative provision. We are not talking just about long journeys. To be honest, most of us do not spend our whole lives doing long journeys. Most of us are doing local missions, are we not? Therefore, we have to open this market up to people who do not have driveways or access to domestic, on-site recharging.
I am grateful to the noble Baroness. The Bill is focused on the longer journeys: that is why it is focused on motorway service areas and the major service area operators. As I said a moment ago, the market is now responding in the way I have outlined to meet the requirements of those motorists who need to recharge somewhere near their home. Progress is being made with providing charging stations at lamp-posts, for example. Following Committee, we have reflected on the debate, which highlighted the need for large fuel retailers and service area operators to be consulted in a way that enables them to fully prepare for future regulations.
I agree with the noble Lord, Lord Tunnicliffe, about the importance of clarity for those retailers in the sector covered by the regulations. We agree with the noble Baroness, Lady Randerson, that the consultation will help improve the regulations by understanding some of the limitations that these bodies could face in installing charging and refuelling infrastructure, such as grid capacity. We also agree that the consultation will assist in raising awareness among fuel retailers that they will need to consider the future.
The Minister refers to long journeys but I think that the biggest market for this product will actually be in the inner cities, where people make short journeys and will want lots of these charging points. That is the reverse of the position taken by the Government. I do not want to drive 100 miles up the M1 and call in at every service station to have a recharge. One wants to use these vehicles in the inner-city areas. The Government seem to have it the wrong way round.
Many people already charge at home. If one looks around the streets just a stone’s throw from the Palace of Westminster one can see an increasing number of charge points, where people who do not have access to home charging can recharge their vehicle. You can recharge your vehicle in the car park at the other end of the building.
Can the Minister say why the mayors are calling for the change in the amendment? They are on the spot in the cities around the country and know the difficulties; they are asking for the change. Why are we refusing it?
The next group of amendments is indeed about the powers that the mayors are seeking, but the Government’s proposal is that those powers should be constrained within the broad terms of the Bill and not extended. We will explain that when we reach the next set of amendments—if we ever get there.
I turn to Amendment 27 in the name of the noble Lord, Lord Tunnicliffe. As stated in Clause 16 and detailed in the policy scoping notes, any regulations brought forward would be informed by consultation with industry, including fuel retailers, motorway service area operators, EV infrastructure providers and operators, and EV manufacturers and drivers. Regulations would need to take into careful consideration the commercial and operational impacts on the organisations that would be directly impacted. For example, detailed regulations would need to take account of: an assessment of current and planned provision at the locations in question; an understanding of the underlying fuel retail and motorway service businesses and the needs of users; and an understanding of the factors which will make particular sites more or less suited to installation and operation of EV infrastructure. In addition, Clause 15 already provides the Secretary of State with powers to create exceptions from any requirement imposed by regulations, which could be used where an expansion of land was required or other disproportionate costs were transferred to retailers and operators.
In relation to the noble Lord’s Amendment 42, consultation would also help inform the Government of the time it would take industry to be compliant with any requirements, and dates for compliance can be written into regulations if necessary. It will be important to address the intention behind the noble Lord’s two amendments as we bring forward regulations. Although we do not believe these amendments are needed, we appreciate his concern that industry must have sufficient time to prepare for any requirements, and we can commit today that where proposals would impose substantial requirements on operators of public charge points, large fuel retailers or service operators, the Government will allow at least six months between the commencement of consultation on the proposals and the coming into force of the relevant provisions of any consequent regulations brought forward under Part 2 of the Bill.
Following Committee, and the report of the Delegated Powers and Regulatory Reform Committee, we have considered whether there is anything further we can do to strengthen our commitment to ensuring that large fuel retailers and motorway service areas are aware of regulations in good time before they are brought forward. My noble friend has tabled government Amendments 44 to 46 to ensure that each time the definitions for “large fuel retailer” and “service area operator” are changed, they are subject to the affirmative procedure to ensure that extra parliamentary scrutiny is afforded to these changes.
Amendment 43, tabled by the noble Lord, Lord Tunnicliffe, seeks to ensure that consultations,
“last for a proportionate length of time”.
We have discussed this in previous stages and the Government believe it is essential to consult before making regulations to ensure that the regulations are both effective and proportionate. That is why we have included a requirement to consult in Clause 16. I completely agree that it is always important to ensure that consultations last for a proportionate length of time. Consulting too quickly will not give enough time for consideration and will reduce the quality of responses. This is why the Government’s Consultation Principles 2018 include precisely this point as one of the principles. The amendment would change the relevant principle into a requirement in the Bill.
We do not believe it is necessary to do that. The Government are already held to account for conducting consultations in line with the consultation principles. There is heavy scrutiny of those responding and of course by Parliament. The Government are also subject to the requirements of public law, and therefore to oversight by the courts, when undertaking consultations of this nature. Therefore, while I fully agree with the importance of ensuring that consultations last a proportionate length of time, I do not think it necessary to turn one of the Government’s principles into a statutory requirement in the Bill.
I thank the noble Lord, Lord Tunnicliffe, for raising the topic of ensuring that consultations last a proportionate length of time. I agree on the importance but, for the reasons I have set out, it is not necessary or appropriate to include them in the Bill. I hope that, with the commitments I have given and the government amendments, the noble Baroness feels able to withdraw her amendment.
My Lords, before my noble friend sits down, I am sure he will agree that the House has expressed widespread disquiet over the narrowness of this clause. Will the Government commit to continuing conversations between now and Third Reading?
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.
My Lords, Amendment 38 clarifies that Clause 12 would not place regulations directly on domestic users.
Regulations under Clause 12 would ensure the ongoing transmission of data from smart charge points to specified persons: for example, this could be the national grid or distribution network operators. This data can be used to help predict future demands on the grid and local network “hotspots” so that infrastructure is planned as efficiently and cost-effectively as possible. The obligation would fall to the operator of charge points, but it is not intended directly to apply to domestic users.
This amendment is in response to a recommendation from the Delegated Powers and Regulatory Reform Committee, which suggested that this intention should be made explicit in the Bill.
I want at this early stage to clarify something. Clause 12(1) refers to,
“a prescribed person or to persons of a prescribed description”.
Could that be HMRC?
I am not sure whether that derives precisely from the amendment that I am debating, but it is a legitimate question, and I will seek to ensure that before we finish the noble Lord has a response to whether Clause 12(1) applies to HMRC. I am not quite sure why it would, because I do not see how it is directly involved in the power generation business. However, that is an off-the-cuff remark, and an authoritative response will arrive, I hope, before we complete the next group of amendments.
The DPRRC said:
“It is very significant that the powers conferred by clause 12 will allow requirements to be imposed on domestic consumers, enforceable by financial penalties. If, as stated in the memorandum, it is not the Government’s policy for the powers to be used in this way, then we recommend that this limitation should be set out on the face of the Bill”.
These amendments represent no change to policy but provide clarification of the Government’s intent. The transmission of anonymised data from domestic charge points will still be useful to predict demands on the grid, so the obligation could still apply to domestic charge points. However, we expect that this would be done by placing the requirements on organisations which have control of the relevant data: for example, charge point or energy companies.
The amendment demonstrates the Government’s intention not to place obligations on domestic users of charge points under this clause, and I hope that noble Lords are able to support it. I beg to move.
My Lords, Clause 12(1) states:
“Regulations may make provision for the purpose of ensuring the ongoing transmission of charge point data to a prescribed person or to persons of a prescribed description”.
Amendment 41 would insert the following:
“Regulations under subsection (1) may not impose requirements on owners or occupiers of domestic premises”.
There is a big hole in the Bill. I want to know where the Government will raise their revenue from when fuel duty is reduced. At the moment we raise £28 billion per annum. Over a period of years, as the use of electric vehicles increases, there will be a revenue loss. At the moment, the duty on petrol is nearly 60p a litre, on LPG it is nearly 32p, on natural gas it is 25p, and on diesel it is roughly the same as petrol.
The Society of Motor Manufacturers and Traders has expressed concern about this. Its view is that revenue will come through road pricing, which I think some people call “spy in the sky”. This whole question of road pricing has always worried me. However, there are other forms of raising the revenue. There is road fund licensing, which would be very expensive if it is substituting fuel duty, or a tax on the meter in the home. In the end, that is where they will have to raise the tax. However, I think that it would be based on the recorded usage on the meter at the residence. If it is based on tax according to the meter at the home, there will have to be two meters in every home—one for the domestic use of electricity and one for the raising of revenue to substitute for the loss of fuel duty—which means that there will be two separate rates. We are entitled to know the Government’s thinking on this. How do they intend to raise revenue in future to substitute for fuel duty losses? In the time that I have spoken, I am sure that the civil servants in the Box have provided the Minister with an answer to my question.
Is there some rule of law that implies at the end of Amendment 41 the words “in respect of those premises”? If there is, I would like to know what it is. If there is not, then all that a vast operator of charge points has to do is to buy one house. It will then be the owners of domestic premises and this clause will no longer apply to it.
I think that it would apply to it as an operator, although of course it would not apply to it as an owner of residential property. We have made it absolutely clear that it is the charge operator and not the consumer who has to supply the data. That is the thrust of these amendments. Perhaps I may reflect on what my noble friend has said and write to him, but we do not see this as a loophole whereby a charge operator can escape its obligation to notify the national grid or whoever of the volume of consumption at a particular charge point.
I commend the noble Lord, Lord Campbell-Savours, for his ingenuity in seeking to broaden a rather narrow debate about data from a charge point into one about the future taxation policy as the nation moves from petrol-consuming vehicles to electricity. I am sure that there are brains in the Treasury who are aware of the potential threat to their revenue, but it is essentially a matter for the Treasury and not for this Bill. The Bill is not about taxation. The policy scoping notes and the Explanatory Notes make it clear that it is not intended to use this clause for taxation purposes in any way. The noble Lord raises important issues but, with respect, they do not arise from this narrow group of amendments.
Why, then, have these regulations? As I understand it, it would not be possible to raise the revenue from the vehicular meter in the home in the event that Amendment 41 were in place.
It is important that the electricity grid is aware of hot points in the pattern of consumption in order to plan ahead. Therefore, it needs the data to find out in what parts of the country demand is coming from and at what times of the day. The amendment would simply place the obligation clearly on the operator of the charge points and not on the domestic consumer.
Perhaps the noble Lord can answer the original question that I asked. Will HMRC be one of these groups of prescribed persons?
My Lords, I think that I should intervene at this particular moment to remind the House about the rules of Report. Paragraph 8.136 of the Companion states that no Peer should speak twice except, with the leave of the House, to ask a brief question.