Major British companies come together to accelerate the electrification of transport in the UK
Thursday 29th July 2021
Seven major British companies, including Severn Trent, bp BT, Direct Line Group, Royal Mail, ScottishPower and Tesco – have come together to work to help accelerate the mass adoption of electric vehicles (EVs) across the UK.
The UK’s ambitions for electrification of road transport are world-leading and, in a report published today (Thursday 29th July), the seven companies – working together as the Electric Vehicle Fleet Accelerator (EVFA) – have outlined a series of urgent actions needed from both industry and Government to deliver the targets.
The EVFA grew from Prime Minister Boris Johnson’s Build Back Better Business Council. It brings together CEOs of companies that own and operate some of the largest van fleets in the UK and companies involved with infrastructure, EV charging, retail and insurance and repair.
Today’s report details how supportive Government policy could help unlock private sector investment of £50 billion in infrastructure and in electric fleets in the UK over the next five years.
If the Government delivers on this agenda, the EVFA members have committed to converting the fleets involved to electric vehicles by 2030 and to buying British - buying 70,000 British-built vans by 2030 or sooner.
They hope this clear statement of intent will act as a stimulus and help spur the investment decisions needed to develop EV van manufacturing in the UK.
Green fleets for clean streets
The EVFA members believe this electrification of fleet vehicles can have much wider benefits beyond their businesses, catalysing the mass adoption of EVs in the UK.
The upgrading of the grid and expanding national charging networks that will result will build wider confidence in using EVs. And, as fleets and businesses account for 60% of new vehicle registrations, their electrification will also build and drive an active second-hand market – the main vehicle market for most consumers.
If the infrastructure and frameworks are put in place to enable this, the companies believe wider customer demand can shift towards EVs sooner than is currently expected.
Report for action
The report sets out detailed recommendations for action, immediately and over this next decade and by both industry and Government. It is focused in four key areas:
- Future-proofing the electricity network infrastructure: ensuring that price controls and funding measures reflect the scale of the challenge, the need to invest in the network ahead of need, and support levelling up with investment in areas the market doesn’t reach
- Enabling the UK-wide rollout of charging infrastructure: fast-tracking EV charging infrastructure in the planning system, aligning with local authorities to unlock land for charging infrastructure, and setting clear funding frameworks
- Overcoming demand obstacles: increasing capital support for grid reinforcement costs, introducing minimum standards for reliability, safety and interoperability, and improving access to public charging networks
- Expanding the supply of UK-made vehicles: providing strong demand signals to OEMs from fleets, setting increasing requirements for zero-emissions vehicles for manufacturers, and incentivising second hand EV market with VAT exemption.
Prime Minister Boris Johnson said:
“I wholeheartedly welcome this commitment by leading employers to fully electrify their van fleets by 2030. This announcement will be a major boost to British vehicle production.
“The government is committed to providing the electric charging points and other infrastructure the UK needs as we build back greener.”
Jonathan Brearley, Ofgem CEO said:
“We welcome this report. The rapid take up of electric vehicles will be vital if Britain is to hit its climate change targets. We are already accelerating investment in the energy networks that support a step change in charge points. We are reducing costs for installing new charging stations and building a market that will make sure that cars can charge at the cheapest possible time.
“We look forward to ongoing work with government, businesses – including members of the EV Fleet Accelerator - and the energy networks to ensure we have the energy system we need to support the electric vehicle revolution.”
Liv Garfield, Severn Trent Chief Executive, added:
“We set ourselves the challenge of reaching net zero carbon emissions, using 100% renewable energy and having a fleet of vehicles that are entirely electric by 2030. This triple carbon pledge is our response to climate change and the threat it poses to the environment and the communities we serve.
“We’re well on our way to meeting these ambitious targets, including our electric vehicle pledge. We’re installing hundreds of EV charging points across our sites and we’ve already welcomed the first electric vehicles into our fleet, with more expected to arrive in the near future. We’ve achieved all of this, despite what the last year has thrown at us. In fact, the pandemic has made us more determined than ever, as we help the country to build back greener and cleaner.”