Drivers being able to compare prices when selecting where to
charge electric vehicles has been set out in the Government’s
‘Powering up Britain’ announcement today. It is a guarantee of
fair pricing that petrol and diesel drivers can only dream of as
they battle rip-off pump prices, says the AA.
In today’s ‘Powering Up Britain – The Net Zero Growth Plan’, the
Government sets out ‘mandating payment roaming to support fleet
electrification, pricing transparency to allow consumers to
compare prices immediately and open chargepoint data to support
drivers to find the right chargepoint for their needs’ *.
The AA argues that petrol and diesel drivers need the same level
of price transparency as soon as possible. The Competition and
Markets Authority in its ongoing Road Fuel Market Study has
already recommended that the Government get on with pump price
transparency straight away **.
One of the reasons electric vehicle (EV) owners are getting a
better response on price transparency is that they are protected
by a regulator in OFGEM. Petrol and diesel car owners have no
such champion.
“The AA supports the Government’s commitment today to the 2030
ban on the sale of new petrol and diesel cars. However, it needs
to step up progress in providing charging infrastructure and fair
prices. In particular, equalising the VAT paid for on-street
charging outside homes with that paid on driveways is essential
in convincing car owners to switch to EVs more quickly. The Kerb
Tax needs to end,” says Jack Cousens, the AA’s head of roads
policy.
“With councils ramping up city access and parking charges based
on the type of fuel used and age of vehicle, car owners need help
to make the switch to electric and cut their daily running costs.
The squeezing of road space in urban centres has been aggravating
congestion and, while petrol and diesel car owners lose money
hand over fist in slow traffic, EVs use no energy at zero cost
when stationary.
“The sale of EVs needs more encouragement, perhaps with lower
VAT. That will increase the flow of EVs through to the used-car
market where less well-off drivers can purchase them at lower
values and reap the benefit of lower ‘refuelling’ and driving
costs.”
Cousens adds: “Setting out price transparency for EV charging is
a slap in the face for hard-pressed petrol and diesel car owners
who face a daily pump price postcode lottery that can lump an
extra fiver a tank on to the cost of motoring. The CMA has said
that the Government needs to get on with price transparency at
the pump. That is not a Net Zero issue but a matter of consumer
fairness.”
ends
NOTE TO EDITORS:
* Page 67,https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1147338/powering-up-britain-net-zero-growth-plan.pdf
** Effective competition relies on consumers being able to
compare accurately the price and quality of products in a way
that drives good decisions. Fuel prices are prominently displayed
at forecourts; but consumers should not have to drive around to
find cheaper fuel.
With this in mind, the government could consider an “open
data scheme” through which individual forecourt prices are
collected and made freely available. Although some tools already
exist to help consumers shop around, such a scheme could provide
commercial opportunities for innovative third- party apps and
websites to offer consumers improved real-time comparisons of
fuel prices. And in turn, this would encourage petrol stations to
compete more intensely to attract customers.
Such schemes exist already in other countries, and in other
markets in the UK. This recommendation could be taken forward in
parallel to the CMA’s market study; and we stand ready to work
with the government if it chooses to pursue this
recommendation.”
https://www.gov.uk/government/publications/road-fuel-review/road-fuel-review
