Automated and Electric Vehicles Bill (First sitting)

Scott Mann Excerpts

Committee Debate: 1st sitting: House of Commons
Tuesday 31st October 2017 Public Bill Committees

[Edward Argar (Charnwood) (Con)]

Q I have a very quick question, following on, I think, from the answers that were given to the Minister’s question, in which you all said you anticipated that, if this goes to plan, it will see safer vehicles and therefore a reduction in accidents, leading to a reduction in premiums, which is clearly a positive for all those paying them. What assessment has been made, or what is your view of, any likely impact of that on the insurance market and industry? As I understand it, car and vehicle insurance premiums to a degree underwrite other insurance policies across the industry—that is the way it is structured. What impact do you think significant reductions in premiums would have in terms of disruption of the insurance market?

David Williams: Lots of work has been done on this by insurance companies and by market consultants, and they predict substantial reductions in the total premium pot. A couple of statistics—we think that 93% or 94% of accidents are caused by human error. I have driven in these machines; they are already much better drivers than most human beings. When we look at things like automated emergency braking systems—that is just one component of what will be the autonomous vehicle of the future—we know that they reduce accidents by 15% and injuries by 18%. So even if they cannot prevent the accident completely and absolutely, because they are braking better and faster there are fewer injuries.

We see a substantial impact. There will probably be a slight increase initially because you will have more expensive gadgets strapped around the periphery of vehicles, but once we see a higher proportion of these vehicles on the road, consultants predict a 50%-plus reduction in the total motor premium market. From our perspective, we are planning in that regard. The good thing is that it will not happen overnight, and therefore as we see motor premiums reduce we can move our staff and our capital on to other lines of business.

[Scott Mann (North Cornwall) (Con)]

Q According to some of the figures I have seen, 63% of the adult population hold a valid driving licence, so by definition 37% of people currently do not. Of the 63% who do, many are precluded from driving because of health conditions or because they have lost confidence behind the wheel. My question is, first, do you think that this Bill will increase social mobility? Secondly, do you think it will increase car insurance volumes in your marketplace? Thirdly, you mentioned to my colleague that premiums will be lower for automated vehicles, so I want to seek reassurances about whether you think the Bill will reduce premiums for people who have mobility problems.

David Williams: One of the consortia we are involved with, Flourish, is looking at cyber-risks and also at mobility, at segments of society that currently feel cut off—people, who perhaps are disabled, living in a rural area and not able to get out and about. That is one of the reasons we want this Bill to go ahead and are keen to support it. Absolutely, it will support that.

In terms of volumes of cars on the road, there are numerous different models. Overall, the view is that there would be fewer vehicles, because this will enable car sharing on a scale that has not previously been seen, but in terms of number of miles covered, there are diverging opinions. One thing that might happen is that, because it will be as easy to get a car even if you do not own one as it is to get a train or similar, more people will move to transport on the road, which will drive up the number of miles. There are other views that there will be an integrated transport network, meaning that more people use public transport because they are much more able to link into it than they are now. I think the jury is out in that regard.

It will absolutely reduce premiums. The other aspect is that even when we have a mixed car park of manual and automated vehicles, because 50% of those vehicles will be safer, although the premiums on manual vehicles will decrease less, they will be less exposed and involved in fewer accidents, so overall that will have a positive impact from a premiums perspective, even on manual vehicles, as the number of automated vehicles increases.

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

Q So what you are saying is that if the owner of a vehicle that is capable of being fully automated updates his or her software, has a vehicle with no warning lights displaying that there is something wrong and uses the vehicle in fully automatic mode in circumstances where it is proper to do so, there should be no liability on the owner, who is actually travelling as a passenger?

Ben Howarth: Yes.

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[The Chair]

I have got Graham as well. I will take you next, Scott.

[Scott Mann]

Q Briefly, in the last session I talked about some of the conditions and the loss of confidence that people have. Do you accept that the Bill increases social mobility?

Diana Holland: On the face of it—

[Scott Mann]

Just a simple yes or no.

Diana Holland: The potential is there, but it is not automatic unless a range of other things are followed up at the same time. It would be fantastic to find ways of developing this so that there is social inclusion for both rural areas and for disabled people, who are currently denied opportunities, but it has to be part of an overall approach to an integrated transport policy. Otherwise there is a danger that we just end up replicating congestion of one kind with another, with different insurance. However, there is a way of using this to develop a whole range of things, including much broader social inclusion.

Rob Johnston: I would add, as I did earlier, that if we are providing transport mechanisms, whatever they look like, for individuals who cannot drive for whatever reason, we need to provide a transport mechanism that allows the transport method to make decisions for them. That needs to be regulated and we need to be confident that the decisions being made by that vehicle, whatever type it is, are the right ones. That is determined by the algorithms and software behind it, so we need to have confidence that those are right. That is because you could potentially take vulnerable people and put them into a vehicle they are not in control of.

[Graham P. Jones]

Q What impact will the Bill have on employment if it goes through?

Diana Holland: Again, it does not have to have any impact on employment in terms of the two relatively minor areas that it could be argued that it covers; but the potential is there to enable a wholesale change to a different method, and ultimately saying that the professional driver no longer has a role. There are extremes in approaching this. We would say that it does not have to do away with employment, but plenty of estimates have shown that if it is introduced in one way, that is the effect it will have.

Our immediate concerns regarding the phrasing of the Bill are on the impact on those people currently employed, or under a range of contracts, and responsible for a vehicle, who would find themselves potentially liable in a way that we hope is not the intention. We really think that needs to be looked at to ensure that it does not encompass all kinds of people who we do not think should be liable in those circumstances. There are specific concerns around taxi drivers who own their own vehicles. There are issues around road haulage, where certain people are required to establish themselves as a limited company or to be self-employed to have jobs, but the definition bears questions. We need to ensure that we are not extending liability here beyond where it ought to be, when the operation is run and owned by a third party.

Rob Johnston: If I can briefly add to that answer, KPMG produced a report that said there are potentially 25,000 additional jobs directly working in the automation industry by 2030. A potential 320,000 jobs that could be created, but there is a caveat to that: Government policy is needed to address the growing skills gap, otherwise there is a risk of losing more than £50 billion in GDP per annum. Those are statistics provided by the transport systems Catapult.

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[Matt Western (Warwick and Leamington) (Lab)]

Q It is great to be in the company of someone so evangelical about EVs. You have probably seen the ambition for the introduction of electric vehicles and the replacement of petrol and diesel by 2040, and an outright ban by 2050. Do you think we are being ambitious enough compared with other nations, and what it is that other nations are doing that perhaps we could learn from?

Robert Llewellyn: I was very pleased when I heard that announcement. Technology might overtake it. There is a strong argument for that among the evangelical electric vehicle users, from whom I try to stand one step back and be a little more objective. But it is such a hard thing to do. I have seen so many graphs to describe the uptake of new technologies and how this will be what happens with electric vehicles—the S-curve of adoption.

Our emotional relationship with cars is really complicated. It is deeper than our emotional relationship was with landline telephones or how television is viewed—all those things. It is more complex than that; I do not think it is quite as simple. I think you could be more ambitious. You could go with 2030, the technology is advancing so much.

The simple fact is that the car I have had the longest—a Nissan Leaf—has a 24kWh battery. There is now the new Nissan Leaf and the battery pack is exactly the same size and it is a 40kWh battery. That more than doubles the range of my very battered dirty old Nissan Leaf that I drove to the train station today. Sorry, no more piffle.

[Scott Mann]

Q I just wanted to ask briefly about your experience of driving in very rural areas. We have a lot of energy generation around the country happening in rural areas, through solar and wind. I just wanted to know whether there are enough charging points in rural areas and whether we could do something to decouple the national grid in some of those areas, so that some of the farmers producing that energy could effectively provide charging points.

Robert Llewellyn: There is a whole other area of fascinating stuff going on with micro-grids and local community-owned generation. That is something that I am involved with in my village. I think it is actually in many ways easier to have an electric vehicle in a rural area—I live in one—because you have generally got, even if it is a muddy drive or field entrance, somewhere you can park the car off the road. Far more people in a rural area have that ability.

You also generally have a bit more space to install solar panels or wind turbines. There is certainly a lot of that activity happening on a community level, of people generating their own power—they own the assets that do that—and they also install electric car chargers. A farmer local to me who is putting 20kW of solar on his barn roof wants to open a café with car chargers. You would have to drive miles to go there—I do not know why anyone would—though he has some nice cows.

[Matt Rodda (Reading East) (Lab)]

Q My question is similar, but from an urban perspective. What would you see as the most effective way to encourage urban residents, particularly those who do not have off-street parking, to convert to electric vehicles? Secondly, how would you incentivise landowners who have car parks, such as large employers, railway stations and supermarkets, to have chargers?

Robert Llewellyn: I feel more confident in answering the second part. When people do install destination chargers—the common term for it—they all notice an increase in time spent by individual customers, because they are there a bit longer, and repeat visitors. Convincing supermarkets that, if they put chargers in their car parks, they will get more customers is the argument that I always try to use.

Certainly, hotels and restaurants have noticed a marked increase of a specific type of customer, particularly if it is a high-end electric vehicle. If they put those chargers in, they appear on the map on the satnav and they get more business like that. That is an argument. I do not know whether you could legislate for that but that is certainly an argument in favour of doing it. As more electric vehicles appear, I feel that will kind of roll itself out in a way.

Automated and Electric Vehicles Bill (Second sitting)

Scott Mann Excerpts

Committee Debate: 2nd sitting: House of Commons
Tuesday 31st October 2017 Public Bill Committees

[Stephen Kerr]

Q You do not see legislation playing a part in this?

Robert Evans: At this stage I would say that was not necessary.

[Scott Mann (North Cornwall) (Con)]

Q A couple of my questions have already been answered. One was on the car-to-grid technology and the other one was on peak capacity. I want to ask the National Grid this: does your grid mirror some of the main arterial roads that run through the country? How effectively could you put your grid capacity into locations? I am firmly of the view that we should not necessarily assume that we want all the charging points to be in current service stations—there might be opportunities outside the existing ones—so how easy will it be for you to deliver that with your current grid locations?

Marcus Stewart: The high voltage network does mirror parts of the motorway network, but not all of it. There will be locations where there is a clear opportunity to build a connection for high voltage to supply charging, and there will be other locations where it is just not that simple. It has to be looked at on a case-by-case basis. Some of the options around that are maybe connecting at a lower voltage tier but using onsite storage, so you are not taking too much stress from the grid in one go. You are managing exactly the same as a petrol station does today, where it fills up a tank of petrol under the ground and feeds it to the cars as they need it.

We have talked to different developers and people who are looking at those kinds of options, and we describe it as a sort of mosaic of different charging routes out there. One of them could be high voltage input, with 350 kV of charging, backed up with a megawatt-scale battery to minimise the connection to the grid and that impact.

[Scott Mann]

Q I have one small supplementary question, if I may. Do you see yourselves as being an end-to-end provider or do you see other companies coming in to fill that middle gap?

Marcus Stewart: From a national grid point of view, my role is to balance the network and ensure that the energy is balanced. We have a transmission owner part that would own the high voltage network, and certainly the element up to a connection. Anything beyond the connection is available for third party competition. Any service provider could put that in. A deregulated version of the National Grid or another third party could put that in. Our primary role is the reinforcement element upstream to support that.

[Mr Hayes]

Q On the back of that, between you there is immense expertise in managing complex systems—I have read your CVs. On the issue of grid management, earlier today we heard a call for some kind of co-ordinated approach on where charge points were located to ensure their spread, and to ensure that there were no areas that would become black holes where there were not enough charging points. Presumably, any such co-ordinated plan would need to be married to the supply of electricity via the grid. The Bill does not yet do this. It is a first step down this road, and it simply increases the number of charging points. Do you see the sense of putting together a co-ordinated national strategy that ties together the provision of the charging points with the provision of the power?

Marcus Stewart: I think it would have some merits. I am not sure whether it needs to be mandated or not.