Ofgem to ensure electric car revolution unlocks full benefits for customers

OFGEM TO ENSURE ELECTRIC CAR REVOLUTION UNLOCKS FULL BENEFITS FOR CONSUMERS

Ofgem has set out how it will support the rollout of electric vehicles (EVs) in Britain, ensuring that the infrastructure and technology is in place for the rapidly growing number of EVs on the road, with an estimated 14 million by 2030.

Ensuring the energy network is prepared for EV uptake – Ofgem will ensure network capacity is in place to support the rollout of electric vehicles, with billions more in network investment expected to follow as part of Ofgem’s next network price control. Investment is already taking place, with £300 million approved by Ofgem in May 2021. Around half of this investment is for new EV charging infrastructure, such as cabling and substations, that will provide the network capacity to support 1,800 new ultra-rapid charging points at motorway service stations, tripling the number of these public charge points, and a further 1,750 rapid public charge points at other key transits and city hubs to reduce EV range anxiety and improve consumer confidence.

Making connections to the energy network easier – Ofgem is proposing to bring down costs for large users, such as electric vehicle charging stations, of connecting to the grid where reinforcement is required. This is an important change that will enable a greater number of people to have access to charge points where they need them.

Maximising the benefits of smart charging – smart charging electric vehicles at periods of low demand will enable EV owners to fuel their EVs for less, and will make more efficient use of the system as a whole, saving money for everyone.

Working to support the development of vehicle-to-grid – vehicle-to-grid technologies will allow EV owners to earn money by exporting electricity back from their car battery to the grid when it is most needed. This will help reduce the amount of electricity generation needed at peak times. Exporting electricity through vehicle-to-grid, if combined with an uptake of smart charging, could reduce peak demand equivalent to the generation capacity of up to 10 large nuclear power stations. This would reduce the overall cost of running the electricity system and help keep bills lower for all consumers, including those who do not own electric vehicles.

Helping drivers switch to EVs – Ofgem will work with energy suppliers and innovators to make sure there are a range of products, services and tariffs for UK energy consumers to take advantage of. It will ensure consumer protections are updated to keep up with technological and business model change.

Neil Kenward, Ofgem’s Director of Strategy and Decarbonisation, says: “Electric vehicles will revolutionise the way we use energy and provide consumers with new opportunities, through smart products, to engage in the energy market to keep their costs as low as possible.

“Our electric vehicle priorities not only provide a way to meet our climate change targets but, importantly, offer ways to protect consumers from rising bills, through a three-prong approach of increased use of electric vehicles, smart charging and vehicle-to-grid technology, which together can help drive down costs for all GB bill payers.”

Ofgem, ofgem.gov.uk

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