Charlie Jardine, chief executive officer at EO Charging
With battery elecric vehicles (BEVs) now representing one-in-five new car sales in the UK, this year is set to be pivotal for the acceleration of electric vehicles (EV).
However, looking back at 2022, it’s clear there are still challenges to overcome to ensure it doesn’t lose momentum - so the entire industry must act now to signpost the long-term benefits of this cost-saving technology.
The global energy crisis has been sobering for our entire society, challenging the easy assumption that electricity will always be cheaper than petrol or diesel.
However, it also brought to light the importance of switching to a sustainable, more flexible source of energy.
We’re a nation rich in renewable sources of energy, and BEVs offer the perfect solution to store and smooth our national generation capacity.
Whether that’s through onsite generation such as solar panels - or load management technology - fleet managers now have the capability to monitor their power supply and balance charger output in line with the fluctuating power availability on site.
And so, if 2022 taught us anything, it is that businesses must become self-sufficient for the benefit of both the bottom line and the planet.
The removal of vehicle excise duty (VED) exemptions from 2025 for BEVs shows how the economy and Treasury has shifted into austerity mode, and in the face of this we must continue to reassure the industry and our customers that there are many other cost-benefits to switching to EVs.
If we are to convince them that the impending 2030 EV and 2035 eBus mandates are still achievable, we must champion initiatives such as the Rapid Charging Fund, Local Electric Vehicle Infrastructure scheme, and Workplace Charging Scheme (WCS).
These have helped get the market moving, but it is now our responsibility to keep it rolling.
A likely tax hike on traditional fuels in the Budget this March should aid the argument in favour of the electrification of commercial fleets and private vehicles.
However, with the economy poised to tip into recession, now is not the best time to be asking finance directors to sign off large capital investments.
With the cost of transitioning a 100 strong bus fleet coming in at around £50 million, is it any wonder that six-in-10 fleet operators we spoke to cite the upfront purchase costs of vehicles as one of the biggest barriers to going electric?
As purse strings are set to get even tighter, innovative financing structures will be needed to continue the shift to green transport.
Over the next year, as we challenge established ways of working and continue to innovate, we must also bring the wider business community with us on the journey.
The ongoing education of fleet managers and c-suite will play a critical role in giving them the confidence and tools to make the switch.
There’s no doubt that 2023 will be challenging for us all, but with the right support, it’ll be a year of opportunity, too.
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