EV Strategy: (ECC Committee Report)

Earl of Effingham Excerpts

Wednesday 16th October 2024 Lords Chamber

[The Earl of Effingham (Con)]

My Lords, I thank all noble Lords on the Environment and Climate Change Committee who dedicated their time and effort to create what is a first-class report. My warm thanks go also to the witnesses who gave evidence; the appendix list reads like a Who’s Who of the motor industry. Their contribution provided the laser focus required to really understand the issues at hand.

The Government are committed to net zero emissions by 2050 and, on the basis that surface transport is the country’s highest-emitting sector, making up 23% of total UK emissions, it is clear that electric vehicles have a role to play in the UK’s progress towards net zero. As with all types of markets, whether that be financial markets, housing markets or indeed autocar markets, consumer confidence is the foundation stone. If people have confidence in the sector, it will grow, thrive and be a positive asset to the UK economy, and that is exactly what we need to instil confidence in the EV market. We are asking people to change the habit of a lifetime, and habits can be very difficult to change without the amount of support and messaging.

The importance of clear communication to consumers on the use of EVs should not be underestimated. As the Government continue their work in this area, they must work with and consult the automotive industry to ensure that they are taking a practical and workable approach to these targets. Automotive companies understand the problems and know consumer buying patterns. We will not succeed if we do not embrace a partnership with them. It is in both our interests and theirs to make this work, and that is exactly what we did with our “plan for drivers” policy and our work with the industry.

I ask the Minister to tell the House which motor industry representatives the Government have recently consulted, in particular about strategic approach and messaging changes, and what the outcomes were of the consultations. While it is easy to highlight the benefits of EVs, the fact remains that new models are expensive relative to their petrol and diesel counterparts. That is why we introduced the advanced manufacturing plan and battery strategy. We worked closely with investors, local authorities, businesses, trade associations and industry experts.

Our goal must be to ensure that the UK continues to lead in the development and deployment of clean and digital manufacturing technologies. If we show we are committed to the longer-term success of the sector, we will create a circular economy, we will support market-led investment in innovation, research and development, we will build our own UK supply chain resilience and create thousands of new jobs. This will reduce costs, remove barriers to boost competitiveness and guarantee investment from international investors in the sector.

We injected £1.5 billion in funding via government grants to support the growth of the early electric car market, which proved vital in supporting the industry in its nascent days. We were well on track to put a new electric vehicle within the reach of many people and, by doing so, advance towards our net-zero target. We worked closely with stakeholders to understand the potential barriers to the uptake of used electric vehicles, and we developed the global technical regulation on EV batteries to set minimum durability and lifespan standards in the hope that this would instil confidence in the second-hand market to drive adoption.

We would therefore be keen to hear what strategy the Minister will now employ to guarantee the continued success of what we built and ensure a Great British-built EV will be a realistic purchase for everyone in both the new and used market. We are seeing a trend towards reliance on foreign imports of EVs, and we must counter this. It will not help the UK economy or our own climate change ambitions.

I also ask the Minister: what assessment have the Government made of the impact of their changes to electric vehicle policy on consumer costs? Will their policy drive up bills for hard-working families?

Messaging and purchasing measures are no use if we do not have the infrastructure in place to put the wheels in motion. EV drivers must be confident they can enjoy stress-free journeys. Between March 2023 and March 2024, we oversaw a 47% increase in the number of public charge points available in the UK. We established the £381 million local electric vehicle infrastructure fund to help local authorities deliver a step change in the number of on-street charge points. We established the £70 million rapid charging fund for the delivery of charge points at motorway service areas. We introduced the Public Charge Point Regulations to improve the consumer experience, and we set up the workplace charging scheme and electric vehicle infrastructure grants to support schools, businesses, charities and many different types of residential properties.

Given the progress we made in government, I hope the Minister will be able to tell the House more about this Government’s intentions for the future. I would particularly like his feedback on whether the Government are engaging with infrastructure funds to inject private capital and what the plans are for rural areas. We must unleash our rural opportunity—that is key to growing the economy as a whole—so what is the Government’s public charging plan for the countryside? What steps are the Government taking to ensure energy costs are affordable for those who own and run electric vehicles?

End-of-life care for EVs also plays a crucial role. We must be able to provide a full front-to-back service which will finish with the recycling and disposal of EVs. What are the Government doing to ensure we have the capacity to facilitate this? If sales and production of EVs are set to increase, so must our ability to safely take them out of service and reuse whatever we can as part of our net-zero aspirations.

We provided £2 billion to support the transition to electric vehicles. That funding focused on reducing barriers to the adoption of EVs, including offsetting their higher upfront cost and accelerating the rollout of charge point infrastructure. We legislated to ban the sale of new petrol and diesel vehicles from 2035, to give consumers independence to make the choice for themselves because of the higher upfront costs and to allow the domestic auto industry to develop further. We introduced the Public Charge Point Regulations, which made sure that everyone could locate public charge points to suit their needs, compare prices between those charge points and enjoy ease of payment in the confidence that the points would be in good order.

The Government are planning to bring forward the ban on new fossil-fuelled cars to 2030. How will they guarantee that they can bring down the price of EVs to an affordable level and why are they moving away from the 2035 deadline, which mirrors that of the EU? A 2035 deadline will allow the UK industry to be far more advanced in the production of electric vehicles and will, as a result, provide a greater benefit to the UK economy and consumer. Decarbonising the grid will incur material investment costs, so any reduction in the cost of electricity is unlikely to be seen in the short term. To be clear, the move to EVs has a role to play in progress towards our net-zero targets, but is it realistic for 2030?

We on these Benches will always put the British people first. If the cost of the Government’s new target is shown to drive up the cost of buying and running electric vehicles, will the Government do the right thing, reconsider their approach and put hard-working consumers front of mind?

Overhead Electrical Transmission Lines

Earl of Effingham Excerpts

Thursday 29th February 2024 Grand Committee

[The Earl of Effingham (Con)]

My Lords, I thank my noble friend Lord Swire for initiating this important debate. I consider myself extremely fortunate to live in a beautiful part of the UK, with all its rolling hills, scenery and landscapes, but I am not the only one who is extremely fortunate—there are all the local businesses, which are dependent on tourism and on visitors who regularly make the trip to visit the area.

Tourism is one of the most important sectors of the rural economy; it is worth over £29 billion per annum and accounts for around 12% of rural employment. In fact, such is the Government’s belief that we should encourage more people to enjoy the countryside and improve the quality of our rural tourism experience that they are making a number of investments, one of which is that Defra will provide up to £2 million to enable local communities to enhance their tourism offer by improving public rights of way.

I believe that, if you were to conduct a straw poll of what visitors to the countryside most want to enjoy, a walk in the fresh air taking in the surroundings would be close to the top of their agenda. People of all ages and mobility can enjoy the experience. It is a magnificent draw for young children to run to their hearts’ content in the fields and exhaust themselves with fresh air and exercise. Young parents or couples can take a break from the busy life they may lead in a city and enjoy some quality downtime surrounded by nature, while the older generation who may not be able to participate in team sport or vigorous exercise are able to work on their daily 20,000 steps amid beautiful scenery.

Spending time in nature helps with anxiety and depression, while at the same time we know that physical exercise has multiple benefits in reducing obesity and maintaining positive mental health. It therefore appears that the benefits of visiting the countryside, going for a walk and enjoying the scenery have multiple positives for both our health and well-being. To quote John Keats:

“Happy is England! I could be content

To see no other verdure than its own”.

It is important that we take special care to retain our glorious countryside and ensure that the use of overhead electrical transmission lines is minimised, given that we have the ability to bury them underground. We already have 4,500 miles of OHL, and of these there are around 356 miles in areas of outstanding natural beauty and national parks. The Visual Impact Provision project and Landscape Enhancement Initiative is a great example of the energy industry working together with National Parks England, CPRE, the National Trust, Ramblers and others to restore the magical landscapes—but this is only

“in a number of locations”.

Of those 356 miles flagged, what is the actual number of miles of overhead transmission lines going though those areas that could be replaced by underground cables?

Cost is obviously a key factor in these decisions, and there have been a number of studies on this. Estimates for the cost of underground cables range from five to 10 times more than overhead transmission lines. What I would like to flag up is that many people, including myself, believe that the long-term societal benefits of underground cables significantly outweigh the initial investment costs of OHL and result in minimal cost implications to us as the end consumers over a 40-year time horizon.

Data from Germany and the UK indicates that an increase in the use of underground cables would result in a 1% increase in the total electricity bill for the end consumer, or approximately £15 per annum at the higher end. The reason for this is that grid charges make up less than one-quarter of the actual price of a kilowatt hour, with the largest components being generation costs and government taxes and subsidies.

National Grid carried out a study in 2019, the results of which showed a nationwide willingness to pay an additional £6.87 per household per year to underground a further 20 miles of existing lines in areas of outstanding national beauty and national parks. It appears that the majority of end consumers continue to support the removal of overhead lines from these areas, so have the Government had any discussions with Ofgem to investigate the possibility of increasing energy industry funding for the Visual Impact Provision project? If consumers are prepared to pay more, it would seem logical to ask the energy industry to increase their levy contribution to match consumer commitment.

Can the Government also ensure that all ongoing and future public consultations on OHL versus underground factor into the outcome the multiple benefits of underground cables for society, tourism, wildlife and the nation’s health and well-being, so that the real holistic and economic cost can be discussed? We are talking about protecting the UK countryside not just for now but for future generations. That should be of the utmost importance.