Chair of the Environment and Climate Change Committee It was my pleasure to attend the Environment and Climate Change Committee on 22 November 2023 and provide evidence on the UK's transition to electric vehicles (EVs). I write to provide clarity and further detail on the points raised during this discussion. Government incentives for EVs and chargepoints The Government is committed to accelerating the transition to zero emission vehicles. It has already spent over £2 billion to support this transition, through grants to reduce the upfront purchase price of vehicles and investment in charging infrastructure. To continue supporting the transition, a number of Government incentives and regulations remain in place. These are detailed in Annex A. Analysis from the Department for Energy Security and Net Zero (DESNZ) suggests that, in a scenario where Demand Side Response (DSR) reduces peak demand by 15GW by 2050, future system costs could reduce by £40-50bn from 2021 to 2050. DESNZ is procuring support to build evidence for the potential impact that Vehicle-to-Grid (bidirectional charging) could have on energy system costs. This analysis is expected to be ready to share in December 2024 with interim analysis ready in May 2024. EV power demand is expected to be the fastest growing source of energy system flexibility from Smart Charging metering standards The Electric Vehicles (Smart Charge Points) Regulations 2021 have been in force since June 2022 and mandate smart functionality for all GB home and workplace chargepoints. These set out required standards for asset metering including compliance with the Measuring Instruments Regulations 2016 when chargepoints are used for trade (i.e. The Government will consult in due course on detailed proposals for Energy Smart Appliances (ESAs) and DSR service providers. This will include how it intends to build a regulatory framework (in collaboration with industry and technical experts) to realise the benefits outlined above. This consultation package will feature detail on minimum anthony.browne@dft.gov.uk

standards for ESA smart functionality, on time of use tariffs, and the Government’s plans for licensing load control and demand flexibility activity. Further work on smart and vehicle-to-grid charging The Government is committed to delivering the actions in the 2023 Smart Charging Action Plan. Current work includes the delivery and capturing of learning from the Vehicle to X (V2X) innovation programme (up to £12.6m of funding available) which is developing and testing V2X hardware, software and business model solutions. Secondly the development of messaging to support consumers at different stages of the EV consumer journey to understand the benefits of smart charging and time of use tariffs. Thirdly, there are plans to consult on technical amendments to the Electric Vehicles (Smart Charge Points) Regulations 2021 in response to feedback from industry. Favourable Benefit in Kind (BiK) rates continue to drive the uptake of new zero emission vehicles. The Government has confirmed these rates out until 2028, to provide certainty to industry. From April 2025, BiK rates for electric vehicles will increase 1% year on year to a total of 5% for battery electric vehicles by April 2028. By contrast, the BiK rate for petrol and diesel cars will increase by 1% in FY2025/26 and then be maintained, with the most polluting cars subject to 37% rates by 2028. Between April 2025 and the end of March 2028 HM Treasury income from BiK tax on electric vehicles is expected to be £495m1. Progress of local authorities applying for the Local EV Infrastructure (LEVI) Fund Funding has been allocated to all Tier 1 local authorities (LAs) in England, totaling 80 authorities including a combined approach for London. All eligible LAs successfully completed the first stage of the application process, which was an expression of interest. Subsequently they were placed into two funding tranches. Details of the local authorities and the full application process including the timetable are published on gov.uk. Following the application process, Stage 2 opened from 7 September to 30 November and welcomed applications from Tier 1 Local Authorities in England allocated to Tranche 1. Tranche 2 is expected to open in Spring 2024. The Government is content with progress Manufacturers’ legal obligation to recycle batteries Electric vehicle batteries are classed as industrial batteries, and their end-of-life management is covered by the Waste Batteries and Accumulators Regulations 2009. These regulations ban industrial batteries from landfill or incineration and obligate battery producers to take back EV batteries free-of-charge, and ensure they are treated at permitted facilities which meet the required recycling efficiency standards. Additionally, the Department for Environment, Food and Rural Affairs is reviewing the legislation that applies to waste battery recycling and is expected to consult on these regulations in 2024. The review will consider the changes needed to properly manage increasing numbers of electric vehicle batteries reaching the end of their lives. Autumn_Statement_2022_Policy_Costings_.pdf

Strategic preparation and prioritisation of viable EV chargepoints for heavy goods vehicles The Rapid Charging Fund (RCF) will future-proof electrical capacity at strategic locations along the major road network, where it is not commercially viable for industry to do so. This will ensure there is a visible and functional long distance charging network, which is vital for mass EV adoption. A pilot for the RCF is expected to open soon. The Government will continue to keep the inclusion of HGVs within the scope of the RCF under review. The Department is also working with industry to develop a zero emission HGV and coach infrastructure strategy for publication in 2024. The strategy will set direction and will outline roles and responsibilities of both Government and industry to ensure the delivery of the refuelling and recharging infrastructure. On Thursday 19 October, the Department published a call for evidence information on the current and future supply, uptake and use of zero emission HGVs and coaches across the UK, as well as their refuelling and recharging infrastructure. The call for evidence will close on 14 December. At the same time, the Department announced the four winning projects Emission HGV and Infrastructure Demonstrator programme.
These projects will demonstrate up to 370 battery electric and hydrogen fuel cell HGVs, plus up to 57 refueling and charging sites which will be in place by summer 2025. The impact of equalising VAT rates for on-street and off-street charging The supply of electricity for domestic use attracts the reduced rate of VAT (5%). Whilst this relief was not designed or introduced for charging electric vehicles (EVs) at home, this relief applies for all uses of domestic energy. Electricity supplied at EV charging points in public places is subject to the standard rate of VAT (20%). Expanding the VAT relief already available would impose additional pressure on the public finances, to which VAT makes a significant contribution. VAT is the UK’s third largest tax and is forecast to raise £161 billion in 2023/24, helping to fund key spending priorities. Any reduction in tax paid is a reduction in the money available to support important public services, including the NHS, education and defence. Change requirements in driving tests The safety of all road users is of the utmost importance to the Government. Driving tests are designed to ensure that all drivers are aware of essential road safety practices and the risks involved in the movement and driving of various types of vehicle, including EVs. The Government continues to keep national driving test standards and requirements under Agreements from adjacent property owners for chargepoint installation The Government is aware of isolated instances where specific agreements with adjacent properties has been required to install a chargepoint (under Section 115 of the Highway Act 1980). The Government does not believe that this is significantly slowing the rollout of charging infrastructure but is continuing to monitor and work with involved local authorities. 2 3 zero-emission-trucks-on-our-roads

Removing barriers to the rollout of chargepoint infrastructure remains of high importance, as highlighted in the Plan for Drivers. This includes a commitment to consult on easing chargepoint operators’ ability to install chargepoint infrastructure on the public highway using permits, instead of street works licences. Once again I thank the noble Lords for their interest in these issues and for allowing me the opportunity to advise on how the Government aims to achieve its 2035 deadline for the phase out of non-zero emission cars and vans.