Source · Select Committees · Public Accounts Committee
Recommendation 2
2
There are a wide range of consumer-facing issues that still need to be addressed to...
Conclusion
There are a wide range of consumer-facing issues that still need to be addressed to increase the uptake of zero-emission cars. Consumers are not all yet convinced that zero-emission cars are a suitable alternative to petrol and diesel models, with concerns over the affordability of these vehicles, the distance they can travel on a single charge and the availability and accessibility of charge-points when and where required. The Department for Transport claims that the price gap between ultra- low emission and petrol and diesel cars is rapidly closing and highlights that the running cost of an electric car is lower than that of a petrol or diesel equivalent. However, we are not persuaded that the upfront costs are low enough for many, particularly if, as the Department states, only 13 electric car models cost less than £30,000. There are also other price differentials that need to be addressed, such as the big difference in the cost of charging on the public network compared to charging on a driveway at home and the costs of replacing electric car batteries. The Departments have deliberately sought to make interventions on a UK-wide basis, but take-up has been greatest where there are high levels of traffic, charge-points and affluence. There is a risk that some regions get left behind during this transition, including those in rural areas. 6 Low emission cars Recommendation: The Departments for Transport and for Business, Energy & Industrial Strategy need to have a sufficient understanding of how changes to the vehicle market are impacting, and going to impact, different types of consumers in different parts of the country. Their plan for expanding the number of zero- emission cars on our roads needs to clearly set out how they propose to tackle emerging consumer issues.
Government Response
Acknowledged
HM Government
Acknowledged
2: PAC conclusion: There are a wide range of consumer-facing issues that still need to be addressed to increase the uptake of zero-emission cars. 2: PAC recommendation: The Departments for Transport and for Business, Energy & Industrial Strategy need to have a sufficient understanding of how changes to the vehicle market are impacting, and going to impact, different types of consumers in different parts of the country. Their plan for expanding the number of zero-emission cars on our roads needs to clearly set out how they propose to tackle emerging consumer issues. 2.1 The government agrees with the Committee’s recommendation. Target implementation date: Autumn 2021. 2.2 The government wants consumers and businesses across the UK to benefit from the transition to ZEVs. The 2035 Delivery Plan set out key commitments, funding and milestones to help achieve the transition, and the EV infrastructure strategy (autumn 2021) will set out the vision and action plan for charging infrastructure roll out. The government is already taking steps to tackle consumer issues, including: 2.3 Affordability: The government’s plug in vehicle grants provide money off the up-front purchase price for people making the switch to EVs. Tax incentives are also available, including favourable company car tax rates, which can save drivers over £2,000 a year. The government is also supporting the second hand EV market, through support for charging infrastructure and zero vehicle excise duty for ZEVs. 2.4 Charging provision: The DfT is investing £1.3 billion in accelerating the roll out of charging infrastructure over the next four years, targeting support on rapid chargepoints on motorways and major roads, and supporting the installation of more on-street chargepoints near homes and workplaces. 2.5 Consumer experience of public charging: The DfT has consulted on using powers under the Automated and Electric Vehicles Act 2018 to make it easy to pay to charge a vehicle, ensure reliability and make chargepoint data freely available, helping drivers easily locate and access available charge points. The DfT plans to regulate later in 2021. 3 2.6 The government will continue to work closely with a range of bodies representing consumers and will continue to monitor consumer issues and needs as we move from early to mass market. Departments will continue to make the case for government intervention as necessary at the forthcoming 2021 Spending Review.