The UK Competition and Markets Authority (CMA) has completed its market study into electric vehicle (EV) charging in the UK and published its final report. Before the 2030 ban on the sale of new petrol and diesel vehicles, the CMA has set out measures to ensure the establishment of a national network of EV charging points.
As part of its market study on electric vehicle (EV) charging, the CMA examined whether the industry can provide a comprehensive UK charging network that works competitively and that people can trust. CMA has found that while some parts of this new industry are developing relatively well, other segments are facing issues that will hinder launch, which could impact the Government's plans to ban the sale of new petrol and diesel vehicles by 2030 and its commitment to make the UK net zero by 2050. Due to the roll-out of on-street charging by Local Authorities (which many drivers will rely on) is too slow and rural areas risk being left behind with too few chargepoints due to lack of investment, the CMA is concerned with the selection and availability of chargepoints at highway service stations where competition is limited particularly. In addition, CMA stated that the research shows that charging can sometimes be difficult and frustrating for drivers, which could stop people switching to EVs and thus, CMA has set out four following principles to ensure that using and paying for charging is as simple as filing up with petrol and diesel;
According to the CMA’s report, there are currently around 25,000 charging points in the UK, and while there is still uncertainty, estimates suggest that more than ten times that amount will be needed by 2030. To eliminate the potential risks above, CMA made the following key recommendations in its market study report:
In addition to this market study on the electric vehicle charging market, CMA stated that it has also launched a competition law investigation into long-term exclusive arrangements between the Electric Highway Company Limited, which is a ChargePoint provider and three motorway service operators which are Moto Hospitality Limited, Roadchef Limited and Extra MSA Holdings (UK) Limited On 22 July 2021. Currently, the Electric Highway provides 80% of all charging points at highway service stations (excluding Tesla charging points that can only be used by Tesla vehicles), and its long-term special arrangements, which is last between 10-15 years, cover approximately two-thirds of highway service stations. CMA is concerned that these regulations may make it more difficult for other operators to provide competing charging points at highway service stations. According to the CMA, this situation can cause drivers to lose competitive advantages such as greater supply, more choice, competitive prices and reliable, high-quality fare points.
(CMA market study report – 23.07.2021, and CMA investigation decision – 22.07.2021)
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