What challenges do fleets face as they wrestle with decarbonisation?

The issuing of EV public charger receipts and revamping the Advisory Electric Rate (AER) were two recommendations from fleet managers facing the challenges of decarbonisation.

The following points were raised at the Fleet200 Strategy Network meeting at CCIA in June.

Key points

•    Biggest challenge facing fleets is capacity – e.g. Network Rail is installing chargers at its public car parks but there is a lack of power at the sites. Cost is also an issue as is the lack of skills sets to install the chargers. Network Rail’s chargers will have dynamic load management depending on the number of vehicles being charged at any one time. Putting 75kWh rapid chargers in for taxi ranks.
•    It can take on average 40-50 weeks from start to finish to get the charge points in, according to fleets. This is typically on land/at premises they own. The issue is the connection agreements; the myriad paperwork required; the bureaucracy and red tape that the DNOs have to go through; the regulations. It all needs to be simplified.
•    There are also lots of people applying to install chargers because they think they might need something when they don’t and that is tying things up further. The proportion of applications to installation is very low because of that. Could the regulations be changed?
•    Regulation dictates speed – major upgrades can take three years because you have to be balanced through the grid. All the stages you have to go through make it complex with the use of language that no one understands.
•    Government/Ofgem need to speed things up because the charging infrastructure takes the longest to do. In the EU, the regulations are different and make it much quicker. Ofgem is too reactive – waits for the demand before acting; EU is proactive. We have to be able to build the capacity ahead of the shift.
•    Fleet management is moving into property management, especially in small business units or rental properties which are a huge challenge to persuade the landlord to install EV chargers – or they want to charge loads of money for allowing it.
•    London is pretty full for grid capacity so further installations will require reinforcement of the grid which the fleet will have to pay for.
•    Adding to the challenge is new homes with chargers – will have to be smart chargers and that is using up capacity in cities.
•    More collaboration needed; conversations with DNOs around single phase, three-phase, paying up front or spreading the cost – Ofgem was meant to have sorted out the regulation but don’t see that it has.
•    Regarding the public charging infrastructure, one big issue is getting receipts – they are not easily accessible or timely, e.g. can receive several months afterwards. There is no standard approach or consistency.
•    Charging infrastructure document needs to insist on contactless and an instant receipt (has to be paper-based; it can’t be emailed if contactless).
•    A reminder that for workplace charging, a business can’t reclaim VAT on private mileage electricity if it’s free charging for staff – are companies accurately measuring electric usage when charging at the office for free?

Actions to take forward/fleet recommendations:

1.    Issuing of EV public charger receipts.

• Not easily accessible or timely, e.g. can receive several months afterwards.
• No standard approach or consistency which causes problems with business mileage reimbursement.
• Recommend charging infrastructure document insists on contactless payments and an instant receipt.

2.    Revamp the Advisory Electric Rate (AER)

• What should be the source of data? Currently, it is the previous year’s average so it’s instantly out of date, especially now.
• Evidence required about the sectors where there are no home chargers. Vehicles that are away from home where there is no infrastructure and are dependent on public chargers.
• Although it is advisory, the burden of proof on costs for paying a higher rate is an administrative challenge.
• Basing the AER on the price cap would help to sort the home charging issue.

Two additional options to consider:

a.    Have two AERs – one for home, one for public.
b.    Inverse the AMAP model: e.g. first 100 miles of every journey is at a lower rate (as it’s more likely to be via cheaper home or work charging) and subsequent mileage is a higher rate (as it’s more likely to require most costly public charging).

3.    Simplify/speed up the workplace charging installation process.

• The issue is the connection agreements, the myriad paperwork required, the bureaucracy and red tape that the DNOs have to go through, the regulations.
• Government/Ofgem could help to speed things up because the infrastructure takes the longest to do.
• Network Rail example: it is taking on average 43 weeks from start to finish to get the charge points into its train station car parks.
• Major upgrades can take three years due to grid balancing demands

4.    Benefit-in-kind taxation needs updating for mobility services.

• HRMC says you have to pay BIK on car clubs, mobility payments, etc.
• Needs Gov, DfT, BEIS, Treasury to come together and re-evaluate the rules.