Regulator has spotlight on EV sector as complaints double

The latest news from Britain's EV sector

Hello, I’m Tom Riley, and welcome back to The Fast Charge, a British EV newsletter.

Top story in today’s edition… The UK’s competition authority is actively monitoring the EV sector, as I reveal that complaints to the regulator have doubled year-on-year.

Elsewhere… Usage of the home charger grant scheme remains flat, a new report suggests charging networks need to double their pace, and tiny cars are in vogue.

As ever, open door policy, if you have any thoughts please do get in touch via my contact details below or reply to this email. Coming up in mid-June is a special on accessibility. See you then!

Reported cases of unfairness in the EV sector double

Summary: Cases of unfairness reported to the Competition and Markets Authority (CMA) – the UK’s competition regulator – about the EV sector have more than doubled over the past 12 months, new figures obtained by The Fast Charge have found.

Key facts… While during the year 2022-23, the CMA received 7 evidence submissions containing examples of unfairness in Britain’s EV sector. In the most recent 12 months (2023-24), the CMA has registered 20 new cases – more than doubling year-on-year.

What about? It has not been disclosed by the authority what specifically has been complained about; however, the CMA did note in correspondence that the case topics “could include pricing” – as my original request had asked about public charging costs.

Small fry? These complaints are not like sending a one star Trustpilot review. Submissions to the CMA require individuals or businesses to provide detailed information about the impact of a market issue as well as supporting evidence to be registered.

Additionally, the way I look at these figures is like this… even before these rising complaints, the CMA has taken several proactive actions to promote competition in the EV sector, particularly around charging. For example, in 2021 when it launched an investigation into EV charging at motorway services. And, more recently, in November 2023, the regulator sent an open letter to charging networks and motorway area operators, reminding them of several recommendations from its EV market study. Likewise, earlier in 2024, the CMA wrote in a consultation response it was committed to overseeing progress in the EV charging sector and ensuring good outcomes for UK drivers.

AI-generated image based on this story

State of play… As it stands, the CMA has confirmed to me there are no live investigations in the EV space. However, this may not always be the case, as my understanding is officials at the regulator are actively monitoring developments across the EV sector.

Official response… When asked for a comment on whether it could launch a new investigation based on the evidence it had received, a spokesperson for the CMA declined to comment. However, interestingly, they pointed me to a statement published in its 2021 study that seems to leave the door open. The text in question says:

“Given how important this sector is, we will oversee progress as it evolves over the next few years. We will take further action if the sector or parts of it are developing in a way that is damaging competition and investment and not working well for people.”

What next? The CMA is clearly interested in the development of EV charging, having taken action, responded to consultations, and engaged with OZEV in the area previously. Post-election, one could guess that the CMA will be waiting for the final design of the £1bn Rapid Charging Fund before sticking their head above the parapet again. The RCF design has long been delayed and even longer been controversial amongst those in the EV sector – for example, in its recently published election manifesto, industry body ChargeUK called for a new government to confirm the design to “remove uncertainty and address market distortion.”

However… not just charging, but worth keeping in mind competition amongst car manufacturers themselves – with Chinese brands pushing their cars towards UK consumers. This is already something the UK’s trade watchdog – separate from the CMA – is said to be monitoring closely. There may be something in that area the CMA takes a sniff at too in due course, particularly with more UK gigafactories getting off the ground.

Home charger grant usage remains low

Headline: Within the latest EV charger grant statistics, published by the Department for Transport last Wednesday, yet again the number of renters successfully making claims remains flatter than the county of Lincolnshire.

Summary: In the 12 months to April 2024, a mere 1,971 chargers – funded by a government grant – were installed by renters. The numbers are even smaller when it comes to landlords themselves, with only 599 devices getting installed since April 2023. In the first quarter of 2024 – which DfT stresses are never 100% accurate (and therefore why publish them one could argue?) – only 316 chargers were installed by renters using the scheme. Meanwhile, landlords installed 157.

Flatter than a pancake that just won an award for being ‘UK’s flattest pancake’

Background: As a quick reminder, previously the eligibility for this home charger grant was anyone with a driveway. However, back in April 2022, the rules were changed to accelerate the uptake amongst those without this ability, such as renters. The grant offers claimants either £350 or 75% off the cost to buy and install a charger, whichever amount is lower.

Overall… Since the updated grant scheme was launched two years ago, taking into account claims by renters, landlords, and car park owners, there have only been 6,675 successful claims. By comparison, the previous iteration of the scheme was giving out 42,000+ grants to homeowners each year on average.

What next? I’ve previously written about some the structural issues with this grant scheme – such as tenants having to deal with difficult landlords or getting charged high fees for installation by their freeholders – and I hope a new government either addresses them or perhaps repurposes the grant for new or used EVs. Something needs to give as, lest we forget, around a third of households don’t have off-street parking, and it’s estimated some 20 million people in Britain are renting.

On this latter note… this week Zouk Capital - which manages the Government’s Charging Infrastructure Investment Fund - invested £35m into a company that is installing chargers in communal residential areas.

Top stories seen elsewhere…

🤔 If you wanted a big sign that the automotive industry is moving away from Europe, look no further than the Geneva Motor Show being axed ‘indefinitely’. Read more.

🚢 Elsewhere… registrations of Chinese-made EVs in Europe jumped 23% in the first quarter of this year. Read more (paywall).

📈 The UK needs to double the rate it is installing EV chargers, based on a new report by energy analysts Cornwall Insight. Learn more.

🚘 Quelle surprise, Toyota last week unveiled plans to continue developing new fuel engine tech alongside its EV investments. The reason given is that there is still a growing need for hybrids. Read more (paywall).

💸 New analysis by Compare the Market suggests EV ownership - when you have the ability to charge at home - can save you £500 a year compared to petrol. Read here.

🫰 The electric Dacia Spring has opened for orders at a price tag of just £14,995. Read more.

🤏 Fun piece published over the weekend about the Microlino - a small EV - and how it (and cars like it) could break up the dominance of SUVs. Read here.

🚗 Speaking of small cars, sure everyone has already seen this, but VW recently announced an ‘ID.1’ project to launch a ‘cheap small car’. Autocar suggests it could be around £17k. Read more.

🛠️ Credit to JLR, who last week announced that 20,000 ‘colleagues and partners’ had received training in EV skills. See here.

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