Referral for the Rapid Charging Fund Pilot Scheme by the Office of Zero Emission Vehicles

The Subsidy Advice Unit (SAU) has accepted a request for a report from the Office for Zero Emission Vehicles (OZEV) concerning the proposed Rapid Charging Fund (RCF) pilot scheme.

From:
Competition and Markets Authority
Published
26 July 2023
Case type:
SAU referral
Case state:
Closed
Market sector:
Motor industry
Opened:
3 May 2023
Closed:
15 June 2023

The Subsidy Advice Unit (SAU) has accepted a request from the Office for Zero Emission Vehicles (OZEV) for a report concerning the proposed Rapid Charging Fund (RCF) pilot scheme.

   
SAU Referral type Mandatory Referral
SAU Referral State Closed
Sector Electricity, gas, steam and air conditioning supply
  Other service activities
SAU Referral opened 3 May 2023

Administrative timetable

Date Action
15 June 2023 SAU’s report to be published
17 May 2023 Deadline for receipt of any third party submissions (submissions after 5pm on this date cannot be taken into account)
3 May 2023 Beginning of reporting period

Final report

15 June 2023: The SAU has published its report providing advice to OZEV concerning the RCF pilot scheme. The report sets out our evaluation of OZEV’s Assessment of Compliance of its proposed scheme with the requirements set out in the Subsidy Control Act 2022.

Request from OZEV

3 May 2023: The SAU has accepted a request for a report from the Office for Zero Emission Vehicles (OZEV) concerning the Rapid Charging Fund (RCF) pilot scheme. This request relates to a Subsidy Scheme of Particular Interest.

The SAU will prepare a report, which will provide an evaluation of the OZEV assessment of whether the scheme complies with the subsidy control requirements (Assessment of Compliance). The SAU will complete its report within 30 working days.

Information about the scheme provided by OZEV

Purpose of the Fund

The UK is committed to phasing out the sale of new petrol and diesel vehicles by 2030. The Rapid Charging Fund (RCF) (pilot and main fund) will support new infrastructure to enable the transition to zero emission vehicles.

This is an important part of Government’s plan to deliver net zero by 2050, and to achieve interim carbon targets. The RCF is one of the ways through which Government is addressing market failures to prepare England’s charging network and energy infrastructure ahead of the phase-out of sales of new petrol and diesel cars and vans.

The RCF pilot will fund a portion of the cost of upgrading the electricity grid at motorway service areas (MSAs) where it is not commercially viable to do so. This will enable the private sector to install electric vehicle (EV) chargepoints at MSAs. Access to a comprehensive ultrarapid chargepoint network will enable more consumers to confidently purchase EVs. The RCF pilot will future-proof electricity network capacity required for EV charging at MSAs a minimum of 10 years ahead, to approximately 2035, with a stretch target of 2050. This will ensure capacity ahead of demand.

A reliable charging network at MSAs is key to tackling consumer charge anxiety and will mean drivers won’t need to invest in electric vehicles with the largest batteries and range, lowering the up-front cost of vehicles. The installation of additional charging infrastructure on the strategic road network (SRN), which is used by millions of motorists every year, is vital to ensuring a successful EV transition. The pilot will test fundamental aspects of the RCF and extract key learnings to inform the design of the full fund.

Timing

The RCF pilot is expected to open in mid-2023, subject to satisfactory completion of subsidy control checks. The timing and process for the delivery of this funding will be confirmed in due course.

Where the Fund Will Apply

Management of motorways and major roads is a devolved policy area. Therefore, the RCF pilot and main fund will apply to England only.

Information for third parties

If you wish to comment on matters relevant to the SAU’s evaluation of the Assessment of Compliance concerning the RCF pilot scheme, please send your comments before 5pm on the date stipulated in the timetable above. For guidance on representations relevant to the Assessment of Compliance, see the section on reporting period and transparency in the Operation of the subsidy control functions of the Subsidy Advice Unit.

Please send your submissions to us at sau-rcfpilot2023@cma.gov.uk, copying the public authority: rapidchargingfund@ozev.gov.uk.

Please also provide a contact address and explain in what capacity you are making the submission (for example, as an individual or a representative of a business or organisation).

Notes to third parties wishing to make a submission

  • The SAU will only take your submission into account if it can be shared with OZEV. The SAU will send a copy of your submission to OZEV together with its report. This is to allow the public authority to take account of the submission in its decision as to whether to grant or modify the scheme or its assessment. We therefore ask that you provide express consent for your full and unredacted submission to be shared. We also encourage you to share your submission directly with OZEV using the email address provided above.

  • The SAU may use the information you provide in its published report. Therefore, you should indicate in your submission whether any specified parts of it are commercially confidential. If the SAU wishes to refer in its published report to material identified as confidential, it will contact you in advance.

  • For further details on confidentiality of third party submissions, see identifying confidential information in the Operation of the subsidy control functions of the Subsidy Advice Unit.

Contacts

Published 26 July 2023
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