Labour scraps £950m EV rapid charging fund first announced by Conservatives

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"Labour Government Reallocates £950m EV Charging Fund to Focus on On-Street Infrastructure"

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Labour ministers have decided to abandon the previous Conservative government's commitment to a £950 million rapid charging fund aimed at enhancing electric vehicle (EV) charging infrastructure near motorways. The rapid charging fund (RCF), originally proposed in 2020 by then Chancellor Rishi Sunak, was intended to upgrade the electrical grid to facilitate simultaneous rapid charging for multiple electric vehicles. However, the initiative faced significant delays and criticism regarding its potential to disproportionately benefit specific motorway service companies. The Department for Transport clarified that the RCF had not been formally incorporated into budget plans, rendering the promise unfunded. In light of this, Chancellor Rachel Reeves announced a revised funding commitment of £400 million over the next five years, primarily focused on expanding on-street charging points, particularly in underprivileged areas that have historically seen less private investment in EV infrastructure.

The decision to redirect funding away from motorway rapid chargers has sparked debate within the industry, with some experts advocating for the full £950 million to be allocated to bolster the EV transition. John Lewis, CEO of char.gy, expressed support for the new funding but questioned whether the total amount could have been better utilized to enhance consumer confidence in electric vehicle adoption. With the number of electric car chargers in the UK surpassing 80,000, the conversation has shifted to the varying types of chargers available, from slow home chargers to ultra-rapid options at motorway service stations. Industry leaders like Ian Johnston have emphasized the importance of strategically deploying funds to improve charging accessibility in high-need locations rather than uniformly distributing them across all motorway sites. Additionally, calls for reducing VAT on public charging to match lower home electricity rates have been made to further incentivize the switch to electric vehicles. The Department for Transport acknowledged the changing market dynamics and highlighted the significant increase in open-access rapid and ultra-rapid charge points in proximity to the strategic road network over the past three years.

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Labour ministers have scrapped a promise by the previous government for a £950m fund for installing electric car chargers near motorways, instead setting aside a smaller sum mainly for on-street charging points.

The rapid charging fund (RCF) was first announced in 2020 by Rishi Sunak, then Conservative chancellor, with the aim of supporting upgrades to the grid so that more electric vehicles could be rapidly charged at the same time.

However, it wasmired in delaysamid concerns it could unfairly benefit some motorway service companies.

The Department forTransportsaid the RCF had never formally been included in budget plans, so the promise was unfunded.

The Guardian revealed in March that ministers wereconsidering directing proposed fundingaway from motorway services amid criticism of the fund’s design from industry.

The chancellor, Rachel Reeves, committed £400m over the next five years “to support the rollout of charging infrastructure” inthis month’s spending review, after announcing £200m for charging in the autumn budget. It is understood much of the spending will support on-street charge points in poorer areas, where private-sector investment haslagged behind.

However, some people in the charging industry said the government should have honoured the £950m pledge in full, even if the money was redirected towards other incentives for people to switch to EVs.

John Lewis, the chief executive of char.gy, which operates on-street chargers, welcomed the £400m pledge. However, he said: “The key question now is: couldn’t the full amount have been directed towards the EV effort – whether through the continued rollout of on-street charging or other consumer incentives – to give people greater confidence to make the switch to electric?”

The number of electric car chargers in the UK is rising rapidly, passing 80,000 in May, according to the data company Zap Map. That represented a 29% increase compared with a year earlier, while the number of rapid chargers with power above 50kW rose by a third.

Not all chargers are created equal

More and more people are buying electric cars, and are having to grapple with charging for the first time. However, not all chargers are created equal, and the profusion of units can cause confusion.

Charging speeds are measured by power output in kilowatts (kW), while battery capacity is measured in kilowatt hours (kWh). For example, a Nissan Leaf has 39kWh of battery capacity, while a Tesla Model Y has 60kWh.

Recharge times vary depending on battery size: divide the battery size by the power to get a very rough idea of how many hours it will take to charge. (E.g., a 60kWh battery at a 22kW charger would take about three hours.) The quicker the charge, the more it tends to cost.

Slow: up to 8kW

Common at homes, on-street chargers and places cars hang around like car parks or hotels. Suitable for charging overnight. Plugging in with a UK three-pin plug to the mains at home will deliver about 2.3kW – although it is not recommended.

Fast: 8kW to 49kW

Found at urban sites like supermarkets, shopping centres or car parks. Capable of charging a smaller battery in a few hours.

Rapid: 50kW to 150kW

Typically found close to big roads for journey charging, but also increasingly found in locations such as supermarkets or gyms with short dwell times. 50kW could give 80% charge in less than an hour.

Ultra-rapid: 150kW and above

Most chargers being installed at motorway services or dedicated charging hubs are now at least 150kW.  Many newer cars can now handle 150kW, and several can charge at speeds of over 300kW, adding hundreds of miles of range in around 10 minutes.

Increasing the number of public chargers is seen as crucial to persuading people to switch to electric cars. However, the focus has shifted from rapid chargers, whichcan allay “range anxiety”on longer journeys, to the slower on-street chargers needed for car owners who do not have private parking spaces.

Ian Johnston, the chief executive of Osprey Charging, said: “New funding should be more effectively deployed on projects in prime locations where the grid connection costs render the site unviable – whether A roads, underserved regions or the small number of motorway locations with unviable grid – rather than gifted to all motorway sites regardless of the costs, as was envisaged under the RCF.”

Johnston also called for changes to road signage permissions to allow charge points to be easily advertised to drivers.

Quentin Willson, the founder of FairCharge, a group campaigning for cheaper charging, said the full £950m should have been spent on accelerating the switch to electric cars.

“Withholding unused RCF funds and not diverting them towards other EV charging initiatives isn’t a great look for government,” he said. “It opens them to the obvious questions about their commitment to the EV transition.”

Willson, a former presenter of Top Gear, said the government should alsocut VAT on public chargingto match the lower rates available on home electricity.

A Department for Transport spokesperson said:“The rapid charging fund was designed to support the rollout of charging infrastructure on motorways and major A roads – but the previous government did not set out detailed plans to deliver this.

“Since the fund was announced in 2020, the market has changed significantly, with the number of open-access rapid and ultra-rapid charge points within one mile of the strategic road network almost quadrupling in the last three years alone.”

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Source: The Guardian