EV charge point operators warned to obey competition laws

The Competition and Markets Authority (CMA) has reminded motorway service operators and charge point operators not to breach competition laws when planning new infrastructure.

The organisation has already investigated suspected breaches of the Competition Act 1998 in relation to the supply of EV charge points on or near motorways.

It also launched a competition law case into long-term exclusive arrangements for the supply of EV chargepoints which were entered into between Gridserve Holdings and three motorway service area operators – Moto Holdings, Roadchef and Extra MSA Property (UK).

This followed concerns that such lengthy exclusivity arrangements would foreclose other chargepoint operators (CPO) from entering the market and thereby impede the effective roll-out of the £950 million rapid charging fund (RCF).

The enforcement action resulted in commitments from all those involved – including commitments to reduce the length of exclusivity periods, and to not enforce exclusive rights at any MSA site that is granted RCF funding.

In an open letter to EV charge point operators and motorway service area operators, Jennifer Halliday, senior director, advocacy and external engagement, at CMA, said: “For drivers to switch to EVs, they must fleet confident that there is a comprehensive, competitive charging network in place across the UK, and that charging is as simple and convenient as filling up with petrol or diesel.

“While we welcome increased private investment and efforts which help to boost charging infrastructure along motorways, it is critical that this investment is carried out in a way that is compliant with competition law and ensures operators can enter and compete fairly.

“Arrangements which lead to long-term exclusivity between CPOs and MSA site operators and/or incumbency of a single operator at a site or across multiple sites, could breach competition law.

“In the long-term, opening up charging at MSA sites to multiple CPOs will give drivers a choice of operators; competition within sites will also help deliver better outcomes for drivers.

“All CPOs and MSA site operators should ensure that their arrangements comply with competition law, seeking independent legal advice if necessary, and making any changes to existing commercial arrangements to ensure compliance.

“These legal obligations apply independently of and – for those operators taking up the RCF – in addition to, any competition conditions attached to the RCF pilot or main scheme.”

Halliday added: “We will continue to monitor charging along motorways and the sector more broadly, across the UK.

“We will also consider intervening using our tools – which include taking enforcement action – where we think further action is needed to improve competition and innovation and to ensure good outcomes for drivers in this critically important sector.”

RAC head of policy Simon Williams welcomed the CMA taking early action to ensure there will be plenty of charging operators to choose from in the future, adding that EV drivers need a robust rapid charging network across the UK, and none more so than at motorway services.

“Unfortunately, while progress is being made, the current state of rapid charging on the motorway isn’t as good as it should be," he said. 

"RAC analysis of charging facilities at motorway services shows the Government’s target of having six high-powered chargers at all of England’s 119 services by the end of the year is unlikely to be met, with only a quarter having that amount in May.

"Much of the continued transition to zero-emission driving depends on would-be EV drivers knowing they can quickly, simply and affordably recharge their cars on long journeys, so getting more chargers from more operators installed in the shortest possible time is crucial.”