As the UK government considers diverting funds from its rapid charging fund, motorway service operators and charging companies weigh in on the potential impact of the decision. Will the move boost public charging or leave existing infrastructure in limbo?
Motorway Toll Revenue in Limbo as Ministers Weigh Options
The UK government‘s rapid charging fund (RCF) was announced in 2020 to support the installation of high-power grid connections for remote motorway service stations. The scheme aimed to combat ‘range anxiety‘ by providing ultra-rapid chargers capable of adding hundreds of miles of charge within minutes. However, despite being allocated £950m, not a single grant has been made.
Charging Infrastructure Funding in Jeopardy
Ministers are now considering diverting some of the RCF‘s funds towards investments in other charging schemes or supporting the transition to electric vehicles more broadly. A person close to discussions in government revealed that decisions have yet to be made on how to allocate the money. The charging companies Osprey, InstaVolt, and Char.gy have expressed their support for redirecting the funds to support charging infrastructure in other ways.
The electric vehicle (EV) transition is gaining momentum worldwide, driven by governments' climate change mitigation efforts and consumers' increasing environmental awareness.
As of 2022, over 10 million 'EVs' were sold globally, with China accounting for nearly half of the total sales.
The European Union has set a target to phase out internal combustion engines by 2035, while many countries offer incentives for EV adoption.
Battery technology advancements have improved range and reduced costs, making EVs more competitive with traditional gasoline-powered vehicles.
A Potential Blow to Motorway Service Operators
The motorway service area operators, including Moto, Welcome Break, and Roadchef, are set to meet with a transport minister after Rachel Reeves‘s spring statement. The big three motorway services companies could potentially lose out if the government decides to reallocate funds. However, other charger companies argue that the money would be better spent elsewhere.
Motorway service operators play a crucial role in ensuring the safety and comfort of motorists traveling on highways.
These companies provide essential services such as food, fuel, and rest facilities to drivers and passengers.
According to a study by the UK's Department for Transport, motorway service areas attract over 30 million visitors annually, with an average stay of around 45 minutes.
Major operators in the industry include Moto Hospitality, Welcome Break, and Roadchef, which operate over 500 locations across Europe.
Charging Industry Reacts to Funding Uncertainty
Ian Johnston, chief executive of Osprey Charging Network, described the RCF as a ‘poor use of taxpayer money‘ at a time when public funds are limited. He noted that most of the rollout of public charging infrastructure has been funded by private investment, which has surged ahead despite the RCF‘s significant delay.
The Osprey Charging Network is a rapidly growing electric vehicle charging infrastructure in the United States.
Launched in 2020, it aims to provide 'seamless and convenient charging experiences' for EV owners on long-distance routes.
With over 1,000 stations across 30 states, Osprey offers DC Fast Charging capabilities, enabling vehicles to charge up to 75 miles in just 15 minutes.
The network is powered by a combination of 'solar energy and renewable sources', reducing its carbon footprint.
As the demand for electric vehicles continues to rise, Osprey's expanding network plays a vital role in supporting EV adoption and promoting sustainable transportation.
Cutting VAT to Boost Public Charging
Delvin Lane, chief executive of InstaVolt, called for the money to be spent on cutting the 20% VAT on public charging to match the 5% rate for home chargers, electric car purchase subsidies, and reducing energy costs.
- theguardian.com | Motorway Toll Revenue in Limbo as Ministers Weigh Options
