2020 Market Review - THE ROAD AHEAD - Petrol Retailers Association
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Become a Total success We are proud to announce that we are developing a network of service stations with the support and expertise of Total. Becoming a Total dealership allows you to be part of one of the world’s largest oil brands. More than a brand, Total is a reference and a guarantee of quality and safety. By joining us, you will benefit from the strength of the brand, access to Total’s premium fuels, security of supply from a leading fuel distributor and expert advice from our dedicated UK team. To find out how we can fuel your business contact us today. +44 (0) 1932 843 354 harvestenergy.com
Market Review HELP US TO HELP YOU, THE INDEPENDENT CONTENTS 2020 FORECOURT RETAILER, BY SUPPORTING REVIEW OF 2019 4 YOUR TRADE ASSOCIATION NOW POLITICAL “Together we WORKING FOR YOU 10 MEMBERS are stronger” THE PRA ON THE ROAD AGAIN 18 ASSOCIATE MEMBERS 20 TECHNICAL RAY BLAKE ASKS: TO EV OR NOT TO EV? 24 CAR WASH CAR WASH ASSOCIATION 28 BRIAN MADDERSON CAR WASH EUROPE 30 CHAIRMAN OIL MARKET OVERVIEW M arket Review 2020 is the sixth issue of MARKET BY NUMBERS FROM EXPERIAN CATALIST 34 PRA’s annual publication with more pages ENERGY TRANSITION dedicated to the Car Wash Association’s (CWA) affairs and even greater emphasis on our ALLEGO TALKS ELECTROMOBILITY 38 role representing members’ interests with the ACCENTURE ON HOW THE FORECOURT IS GETTING PERSONAL 42 UK and Scottish Governments and the devolved TOTAL RETURNS TO THE UK WITH HARVEST ENERGY 46 assemblies. BUSINESS I am delighted that the publication continues BUSINESS RATES UPDATE FROM MUA 50 to generate so much interest and acts as a starting CHRISTIE & CO’S PROPERTY VIEW 52 point for developing discussion at our popular “Business Breakouts” and Roadshows. Details of LEGAL UPDATE FROM MILS 54 these important regional events, when we bring RETAIL PRA/CWA and key suppliers to meet members, are FORECOURT TRADER OF THE YEAR 60 to be found on our website www.ukpra.co.uk Throughout next year, we will be focusing on alternative fuels – with electricity supply, charging points, forecourt safety issues and hybrid/pure Who’s who at the PRA PRA MANAGEMENT TEAM Aziz Patel, The Brookfield Group electric vehicles all commanding close attention. Brian Madderson, Chairman Hemant Tandon, Park Garage Group There will be ample time to meet suppliers and 07768 608332 brian.madderson@rmif.co.uk Mark Wilson, Fraser’s Retail other retailers to discuss your views and concerns at Gordon Balmer, Commercial Manager our events. 07771 834073 gordon.balmer@rmif.co.uk PRA TECHNICAL COMMITTEE Phil Monger, Technical Director Gordon Balmer, PRA Roadside retailing is definitely not an industry 07831 327990 phil.psac@gmail.com Matthew Bellamy, Certas Energy sector on its knees, but one that is displaying Ray Blake, PRA Ray Blake, Technical Manager renewed optimism and strength for the future as 07496 967269 ray.blake@rmif.co.uk Nicholas Brocklehurst, Westbridge Motors you will see by reading the pages that follow, with Steve Coombe, Membership Manager (Northampton) Ltd thanks to all the contributors for their extremely 07831 373205 steve.coombe@rmif.co.uk J Brownsey, Fordingbridge Garage Alexander Russell, Director of Strategy 07881 Rodney Carter, Vapour Control Systems valuable insights and to all advertisers for 502581 alexanderrussell068@gmail.comπ Michael Garner, The Garner Group supporting this publication so generously. Gill Howkins, F Howkins and Son PRA EXECUTIVE COMMITTEE Graham Lambert, St Michaels Garage Ltd Brian Madderson, Chairman Andrew Lawrence, Lawrence Garages Mike Garner, The Garner Group Ben Lawrence, Lawrence Garages Ashley Kay, The Kay Group Emma McVie, Southern Co-operative Sue Kembrey, Stanishawe Services Phil Monger, PRA Graham Lambert, St Michaels Garage Ltd Barry Onions, Petroassist Andrew Lawrence, Lawrence Garages (London) David Sommers, Hampshire Trading Standards Cover image: Shutterstock Paul Suchodolski, Rontec The Retail Motor Industry Federation (RMI) is a leading automotive trade body in the Publisher: Simon Lewis UK, representing franchised car PRA MARKET REVIEW is published by Editor: Tracy West and commercial vehicle dealers; Lewis Business Media Ltd, Art Editor: Sarah Crowhurst independent garages; bodyshops; motorcycle dealers; petrol Suite A, Arun House, Office Village, Sales: Rachel Hallett retailers; auction houses and cherished number plate dealers; River Way, Uckfield, TN22 1SL Printed by: Stephens & George Print Group, who provide sales and services to motorists and businesses Tel: 01825 983105 Goat Mill Road, Dowlais, Merthyr Tydfil, CF48 3TD across the UK. Fax: 01825 983108 ©Lewis Business Media Ltd 2020 201 Great Portland Street, London W1W 5AB Email: kay@lewisbusinessmedia.co.uk All rights reserved. Tel: 020 7307 3598 • Fax: 020 7307 3406 • www.ukpra.co.uk www.ukpra.co.uk 03
REVIEW OF 2019 Market Review 2020 2019: LULL BEFORE THE after the Volkswagen ‘dieselgate’ (ELECTRIC) STORM? scandal. While there is no imminent UK ban planned for diesel cars, under the Government’s 2017 UK Air Quality plan, PRA and CWA chairman Brian Madderson reviews the key the sale of both new diesel and petrol cars will be stopped by 2040 developments affecting our industry in 2019 and beyond Consumers and fleet operators have been moving quickly to change T he result of the General Election businesses, plus investment in exciting from diesel, with new registrations in December returned Prime new developments. falling by 22% year-on-year, and whilst Minister Boris Johnson with petrol car sales have increased slightly, a clear majority for the new-look FUEL alternatively fuelled vehicles had record Conservatives to deliver Brexit as With so much emphasis by scientists sales in November 2019. soon as possible. For business and and environmentalists across the The publication of Road to Zero by the consumer, the prospect of greater globe on the adverse impact of climate the Department for Transport proposes economic certainty and growth in 2020 change on weather systems producing that by 2040 no internal combustion is very welcome after three long years exceptional rainfall and floods, heat engines (ICE) will be permitted in of delay and procrastination – we wish and droughts, ice melt and oceans new cars and there are now pressures everyone a successful New Year. rising and accusatory fingers pointing to bring this date forward to 2035 or As we look back on 2019, the at the oil industry, it really does feel like even 2030. Local authorities are being roadside retailing sector has the lull before the (electric?) storm. Not encouraged to introduce their own outperformed almost all other retail only that but air quality has become policies and Bristol is set to become sectors such as high street shops, a major issue at a local level with hotels, restaurants, care homes and pubs. Property asset values lawyers taking governments to task and winning High Court judgements “Consumers and fleet have increased, cashflow has been strong and very steady on the back that impose timescales and stringent targets. operators have been of improving fuel and shop margins. Recent meetings with banks have Diesel cars, especially older ones, are said to produce more nitrogen oxides moving quickly to confirmed their continuing appetite to lend to our sector, which in turn has (NOx) than petrol cars. They have come under scrutiny over concerns change from diesel” ensured good demand for existing about their emissions, especially EG’s Barton the first city in the UK to ban diesel Upon Humber site vehicles in its city centre. There will also be a wider Clean Air Zone (CAZ) which commercial diesel vehicles, such as buses, vans and lorries, will be charged to enter, unless they meet emissions standards. These proposals need Government approval before coming into force in 2021 Drivers of more polluting cars including most diesels, have to pay a daily fee to drive in central London under the Ultra Low Emission Zone (ULEZ), which came into force in April 2019 to help tackle dangerously high levels of air pollution in the capital. This was 17 months earlier than originally proposed. In October 2021, the zone will be expanded from the North Circular Road at the top and down to the South Circular. Other cities across the UK are also taking action to improve air quality and reduce pollution. These include: Aberdeen, Dundee, Edinburgh and Glasgow: The Scottish Government has promised low emission zones for each ▹ 04 www.ukpra.co.uk
Supporting independent dealerships Going places together 24/7 >20 500 service from our supply locations in-house drivers dedicated UK team nationwide We have what it takes to ensure your business succeeds. To find out more about our winning formula, call our Territory Managers 020 7404 7700 greenergy.com/independent-retailers THE NATIONAL BRANDED WHOLESALER FOR ESSO
Service driven business solutions Health and Low cost Realtime Online and safety payments fuel loss face to face specialists made simple detection staff training For information contact your friendly team of experts today. 01772 790901 customerservice@suresite.co.uk www.suresite.co.uk Suresite® is a registered trade mark of Suresite Group Limited © Suresite Group 1119SS
REVIEW OF 2019 Market Review 2020 and are committed to further rapid expansion. Not only are the ‘big four’ supermarkets being hit by this external competition, they are being adversely affected by cannibalism: losing high margin main store sales to their fast-growing own brand convenience stores: eg. Tesco Express and Metro, Morrisons Daily and Sainsbury’s Local and also increasingly to online shopping where the eye-watering labour costs of picking, packing and delivery virtually eliminate previous margin levels. This has forced the ‘big four’ to take more margin from fuel so closing the price gap on other players ▹ of these cities between 2018 and 2020. Bath: the city is proposing to “It’s a sign of confidence in the retail fuel market to the latter’s advantage. charge higher emission vehicles to drive in the city centre by the end of that dealers are eager to After the lull in net closures in 2018, in 2019 there was another lull as site 2020, at a cost of £9 per day. Birmingham: One of five cities invest in NTI sites” numbers continued to remain stable with only nine net losses to date: 63 required by the government to closures, generally smaller dealer sites, introduce a Clean Air Zone by 2020, it offset by 35 new-to-industry (NTI) and has already outlined plans for cars and 19 return-to-industry (RTI). taxis to pay £8 per day. It is a sign of market confidence Derby: Has been told to set up that dealers and others are eager a Clean Air Zone, but it has not yet to invest £2m-£5m (non-motorway provided detailed plans. service areas) in NTI sites with good Leeds: A Clean Air Zone covering convenience shop brands and food- more than half of the city will be to-go as demonstrated by openings introduced from January 6, 2020. from Euro Garages. And the family Charges will only apply for the worst owned Kay Group. As well as many polluting HGVs, buses, coaches, taxis Knock Downs and Re-Builds (KDRB) and private hire vehicles. undertaken. Nottingham: Has reportedly Over and above the standard petrol/ ditched plans to introduce a Clean Air mileage from light and heavy goods Top: EG Burnley diesel/auto lpg forecourts, there are Barracks Services Zone after modelling showed it could vehicles, indicating a dip in economic Above: The Kay also ‘Non-Retail’ sites – sites which reduce air pollution to below the legal activity. Group’s Ruabon site offer fuelling but do not usually retail limit within two years. to the general public. This ‘Non- Oxford: Is proposing to introduce FORECOURTS Retail’ category is primarily Truck Stop the world’s first Zero Emission Zone. The trend decline in forecourt numbers locations (like the ones Certas has been Both diesel and petrol vehicles would was around 300 to 400 each year opening around the UK) but it also ▹ be banned from the city centre in through the 1980s and 1990s as the big A lull in closures = a net loss of 9 sites phases, starting in 2020. four supermarkets vied with each other New-to-industry sites: +34 Sheffield: Has proposed charges for new out-of-town store openings. for the most polluting vehicles using These would have a filling station on Company: +4 (BP 1; Texaco 1; 2 Gulf Automat 2) the inner ring road. Buses, coaches and the periphery and with average volumes Hypermarket: +10 (Automats 8; Asda 2; Costco 3; Tesco HGVs would pay £50 a day, taxis and soon reaching 10ml/y any small dealer 3; Morrisons 1 relocated; Sainsbury’s 1) minicabs £12.50, and vans and LGVs pumping less than 2ml/y within a few Dealer: +20 (EG 7; Kay 2; MFG 3; NI 4) £10. miles was priced out of the market. Return-to-industry sites: +20 Southampton: Set to submit Hence numbers plummeted from Company: +8 (Gulf Automat 3; BP 1; Harvest 1; plans to the Government at the end of 14,000 in 1990 to the present 8,385 Applegreen 1) January. The emergence of German discount Hypermarket: +1 (Co-op 1) Unsurprisingly, demand for road chains, Aldi and Lidl, abruptly stopped fuels, excluding biofuels, fell by (3%) the UK multi-nationals’ space race Dealer: +11 (EG 1;Falcon 1; James Hall 1) in Q2/19 which was the largest overall as they began to lose both volume Closures: +63 reduction since Q1/13. Diesel dropped and margin to the newcomers. These Dealer: 63 by 4%, a reduction not seen since 2009 super-efficient and competitive Source: Experian Catalist and was partly caused by the lower discounters now have over 1,400 stores www.ukpra.co.uk 07
REVIEW OF 2019 Market Review 2020 ▹ covers hydrogen and CNG/LNG. So for acquiring sites. and now has 37 sites the ‘alternative fuels’ locations we have The loss of these sites was offset MPK Garages has been boosted some noted on standard retail sites by purchases of high quality dealer by acquisition from Australian private – like hydrogen at M25 Shell Cobham groups: Simon Smith and Symonds equity fund Stratford Capital, with Services but others on Non-Retail Forecourts plus some NTI openings to Nerissa Haskic supporting long-term locations like CNG/LNG at M6 Poplar keep numbers above 900. CEO Paul Kershaw. Already over 30 2000. Early last year, Sainsbury’s was sites with many moving to Morrisons advised by its legal team that a bid Daily-branded convenience stores. (merger) with isolated Asda – Walmart Platinum Retail, led by the UK V3 2019 All UK Retail Non- apparently keen to exit Europe – would indefatigable Sej Sejpal, continues to Sites Retail be approved by the CMA Clearly, expertly pick up singletons and small Petrol/Diesel 8,568 8,385 183 they had not reckoned with new and groups with over 32 sites now in his ambitious chairman, ex-MP Andrew portfolio. Hydrogen 18 3 15 Tyrie. Harvest Energy has recently acquired CNG/LNG 24 7 17 After expenditure of millions of by licence the TOTAL brand for the pounds on advice from City lawyers UK market with the first site launched Auto LPG 786 781 5 and bankers, Sainsbury’s bid was in Thirsk. A recent poll by Forecourt comprehensively rejected. Thus, Trader magazine confirmed that 67% of Red Diesel 496 478 18 the spectre of not one but two readers were pleased to see the return Source: Experian Catalist supermarkets pricing fuel at or below of this once important retail brand for cost did not materialise. the UK market. How many sites will OWNERSHIP Other dealer groups to forge ahead convert and over what timespan? The market anticipated that MRH in 2019 included: Retail, the largest dealer group at the Harvest Energy (retail trading arm LOYALTY SCHEMES end of 2018, would complete an IPO of Prax Petroleum) acquired 63-site There was certainly no lull in this on the London stock exchange during HKS, which, together with existing keenly fought customer incentive. BP’s Q1. US private equity fund, Lone Star, operations including branded fuel long-term arrangement with Nectar tested prospects and presumably was supply, gave them over 160 sites was discontinued and the company not encouraged – look how Aston Applegreen continues to expand introduced its own loyalty scheme, Martin had a stellar launch only for the in Northern Ireland and mainland UK BPme. shares to “bomb” through the year. with over 130 sites and unexpectedly Nectar signed up with Esso and Instead MRH was sold to rival dealer acquired Welcome Break with 38 dealers were relieved that costs were group, MFG, owned by another US forecourt/shopping MSA complexes charged on issuance not on fuel private equity fund, Clayton Dubillier Penny Petroleum led by colourful deliveries. To date, issuance rates and Rice. This made the latter a tour de ex-BP Retail expert Dave Penny, with acceptability have been good. force in the market, leading to an close to 60 sites Meantime, Shell completely Inquiry by the Competition & Markets Ascona led by industry veteran, overhauled its internal scheme and Authority (CMA). Darren Briggs, completed the purchase relaunched as Shell Go+ with easy- The acquisition was approved of the 17-site Cornwall Garage group to-use-and-redeem features which subject to MFG disposing of some Below: Welcome appears welcomed by both retailers and 38 sites where competition might be Break Hopwood motorists alike. Park, on the reduced. M42, now part of Most of these sites were sold to an Applegreen after last THE FUTURE year’s unexpected emergent Graham Peacock (ex-MRH acquisition My view is that government and shareholder and CEO) through trading industry need to provide much greater operation SGN, which was already financial and operational leadership if clean air and climate change improvements are to meet their ambitious time horizons – not least by being TECHNOLOGY NEUTRAL. So less one-eyed focus on “electricifation” and more two-eyed on all other fuel developments including GtL, CNG, LNG, hydrogen and even synthetic fuels. Being a pragmatist, I can see fossil fuel-powered vehicles on our roads for many years to come, which is why the conventional forecourt is not a 21st century dinosaur!! 08 www.ukpra.co.uk
POLITICAL Market Review 2020 WORKING FOR YOU PRA has established strong working relationships in Parliament and across Government to make sure that its members’ interests are represented when policy is made B REXIT such as security of supply, contingency diesel vehicles from the roads by 2040. 2020 promises to be the year of planning and immigration. The PRA has The PRA has begun talks with officials Brexit with a deal. We support periodically published updates on Brexit in the Treasury as to how they might the transitional arrangements which in Petrol Heads-Up. replace the £28 billion that is currently have been made so that our members raised in fuel duty, plus the £7bn in VAT can continue to import fuel and food REDUCING FUEL DUTY RELIANCE that would be lost in the changeover to supplies from the EU without border For the past nine years, fuel duty has electric vehicles. We have warned the checks. Longer term, we look forward been frozen at 57.95p per litre for both Treasury that if they were to attempt to to the UK striking free trade deals with petrol and diesel. Keeping it frozen increase the tax take from fuel duty in the EU and third countries, which could at this level should help maintain the the coming decade, it would become all apply from 2021. stability of the UK economy at a time of the harder to replace the lost revenue in The PRA is participating in the Oil political change. We will be urging the the decade when alternative fuel vehicles and Gas EU Exit Sector panel. This Chancellor of the Exchequer to ensure (AFV) displace petrol and diesel. is facilitated by BEIS (Department that UK duties and pump prices are for Business, Energy and Industrial competitive with those of EU countries. ROAD PRICING Strategy) and offers an opportunity to The UK Government has set itself Following representations from the PRA, voice members’ concerns about issues on a path to removing all petrol and the Department for Transport (DfT) ▹ 10 www.ukpra.co.uk
Join the UK’s largest fuel network. Becoming a BP Dealer means you’re not only joining the UK’s largest network of fuel retailers, you’re entering a collaborative partnership that works alongside your business needs. Joining a major oil company that invests in innovation, we can help future-proof your site and offer flexibility to suit your needs. Becoming a partner to our extended global network, BP are able to offer you the best in industry forecourt signage and option to sell the leading Ultimate premium fuel. Talk to our dedicated team today to find out how we can help your fuel retail business. Fuelling Growth. Powering Business. Contact us at PartnerWithBP@bp.com to take your first steps to become a BP Dealer.
POLITICAL Market Review 2020 Oil Industries Forum (DOIF) and among will be issued early in 2020. Following other subjects discussed has been the receipt of replies to the document, we issue of IMO 2020. IMO 2020 is the understand that E10 will be introduced International Maritime Organization’s some time in 2021 and the PRA’s stance directive to world shipping operators remains that the introduction needs to run their ships on low sulphur fuel to be “mandated” by Government oil. Currently ships run on 3.5% heavy as opposed to a commercially led fuel oil and from January 1, 2020 ships introduction. Mandating not only have been required to install scrubbing ensures there is universal and systems into their exhaust systems simultaneous adoption but also means or run on 0.5% sulphur fuel oil. This that filling stations can use the same change will add to the cost of shipping. infrastructure that is currently being However, it may also impact the cost of used for premium grade E5 petrol. petrol and diesel. During the last year we have kept members informed as to how BUSINESS RATES/ATMS this is developing. Watch out for further In February 2019, the PRA submitted Above: PRA is ▹ has indicated that it will be launching a working alongside updates in Petrol Heads-Up. We have evidence to the Treasury Select consultation on road pricing in 2020. the ATM International published documents on this in the Committee on the impact of business Association to lobby We will be examining the issues carefully on ATM business Members’ Section of the website. rates on the independent forecourt and consulting members on their views. rates We have also been engaging with the sector. In the March 2019 Budget, the The attraction of road pricing from the Below: PRA has DfT on the introduction of E10 petrol. Government announced a retail relief Treasury’s point of view is that it would called for the During the year our technical director, scheme on business rates for 2019/20 introduction of E10 enable government revenues from the to be mandated by Phil Monger, led a party of members and 2020/21 in England and Wales. PRA road transport sector to be maintained. government who visited the DfT to discuss this was quick to obtain clarification from Fuel duties paid at the pump could be issue. We now expect that a consultation Treasury officials that the scheme would replaced with revenue from use of the document on the introduction of E10 apply to PFS with a rateable value of roads. less than £50k. These would be eligible Government bodies oversee a range of different incentive schemes “Mandating E10 means for a one-third discount against actual payments (subject to EU de minimis in place for alternative fuels. PRA will be encouraging the Government means that filling rules). Following further lobbying by PRA, to recognise the willingness of the operators of existing station (PFS) stations can use the the Government has recently announced that the retail relief scheme for 2020/21 premises and infrastructure to embrace alternative fuels, and to ensure same infrastructure” would have an increased RV threshold of £51K and an increased discount of appropriate incentives are put in place 50%. This will bring additional financial to adapt them for the vehicle fleets of benefit to many of our members. the future. The 2021 Revaluation will continue to be based on market rental values at April FUEL DEVELOPMENTS 1, 2019. All but the largest new shop The Renewable Transport Fuel developments will see a small increase Obligation (RTFO) is the Government’s in rates, following a formula now agreed flagship policy to reduce greenhouse with the VOA. gas emissions. This is facilitated by the PRA is also working with the ATM blending of biofuels into petrol and International Association (ATMIA) diesel to reduce harmful emissions. Fuel to make appropriate representations suppliers who qualify to join the scheme following the loss of a court case by receive tickets to enable them to comply the VOA, which was attempting to with the RTFO. levy separate business rates on third During 2019, the PRA has engaged party through-the-wall cash machines with the Low Carbon Fuels Regulation (TTWATM) and standalone booths department within the DfT. The aim of installed at PFS. these meetings was to seek clarification The case is due to be heard by the around the scheme, its success and Supreme Court in March 2020 with future developments. Full details of the a judgement in the summer. Should scheme are contained in the Members’ the VOA lose again, there will be rates Section of the PRA’s website under refunds backdated to April 2010 for “Representing your interests: Fuels some filling station owners, depending policy”. on the agreement they have in place with The PRA also sits on the Downstream ATM suppliers. ▹ 12 www.ukpra.co.uk
Saving you money & time on your energy supplies... PRA UTILITIES WILL: DON’T JUST TAK Save you time and money by researching the E OUR WORD FO R IT... entire electricity and gas markets on your behalf Applegreen pl c / Petrogas Gro We began workin up UK Ltd Avoid you getting caught on expensive out of g with PRA Utilitie have called on th s in 2010, and eir services regu contract rates arrange new ener larly since then to gy deals for our business. Ensure you are not ‘locked in’ to long term high During the time we have worked progressively ac together, we have price contracts quired many ne w sites, and the team at PRA Utili ties has been ex us in arranging ne tre mely helpful to Align multiple supplies to one renewal date to w energy deals for the sites ease your future administration as we took them over. They offer a full Advise on Change of Tenancy, new meter all round service contracts throug that manages h to implementa installations, and supplier objections and new supplie tio n with existing rs. We would be recommend thei happy to Provide access to energy efficiency products r service to othe r firms. and services Peter O’Conno r @ Petrogas If you would like to discuss your own energy situation with PRA Utilities then please contact us on: prautilities@spiral-group.co.uk
POLITICAL Market Review 2020 ▹ FORECOURT CRIME the future, and the PRA will be tracking PRA representatives have met in recent months with two Home Office ministers “PRA will be talking to its take-up in other EU countries such as Germany, as well as voicing the retail to discuss the weak response of some the Government about fuel industry’s willingness to embrace police forces in England and Wales to this technology in the UK. no-means-of-payment fuel losses as how to incentivise and Looking ahead, the Government well as criminal drive-offs. They have is going to come under increasing put their weight behind PRA’s call for reward PFS which pressure to take a more neutral stance all crimes to be properly investigated, and a new Crime Strategy Unit has been provide alternative fuel between zero carbon technologies. Its heavy-handed discouragement of formed in the Home Office to tackle the issue. infrastructure” modern diesel cars – despite their reduced carbon emissions compared to A meeting between Brian Madderson unleaded – has been environmentally and the national police lead for retail Pictured above: While We will also be raising the safety damaging. crime, chief constable Simon Cole, PHEV and BEV cars concerns that come into play with the The Government has neither the make up 5% of the resulted in the acknowledgement that UK car parc, some installation of electric charging capacity technical expertise nor the market the solution to fuel theft does not lie 1.8 million internal of 50kws and above. knowledge to sit in judgement, and it is combustion engine with pre-pay but with prosecuting cars were sold in The PRA has been critical of the not best placed to pick winners in the thieves to deter others. PRA is also 2019 Government’s stance in the Road to race to provide zero carbon methods of working more closely with the National Zero document, in so much that there road transport. PRA opposes knee-jerk Business Crime Centre and the DVLA to should be an agnostic approach to responses such as the outright banning tackle this issue. alternative fuels. However, there appears of clean diesel vehicles in Bristol city to be an over-reliance on electric vehicles centre. ALTERNATIVE FUEL VEHICLES to meet emissions targets. This has all the hallmarks of Plug-in hybrids (PHEV) and battery-only Unlike electric vehicle charging, political posturing, while making little vehicles (BEV) now make up 5% of the hydrogen-powered drivers can refuel environmental sense and undermining UK car parc. However, there were 1.8m their vehicles in three to five minutes; the central Bristol business of several of more new internal combustion engine and the technology can be swapped into our members. (ICE) vehicles and less than 0.2m existing PFS more easily than electric alternative fuel cars sold in 2019. Siting charging infrastructure. Germany ENERGY RESILIENCE charging points is going to be a huge already has 76 public hydrogen stations, The PRA sits on the Downstream challenge for PFS, and the PRA will be which are usually integrated into existing Oil Industries Forum where we have talking to the Government about how service stations, and the UK is falling discussed the National Emergency Plan to incentivise and reward PFS which behind. Hydrogen may ultimately prove for Fuel. provide alternative fuel infrastructure. to be a more reliable zero carbon fuel of This plan would be enacted by the ▹ 14 www.ukpra.co.uk
Join Londis today “ The support we receive from the and watch your profits Londis Forecourt grow Development Team is great. Their knowledge of the sector is second to none and has helped boost our sales RIGMIiCAMSKX` ” - 00% Cost Free model - Earn up to 4% discount* - Award winning Own Brand & Fresh range - Dedicated Forecourt Danny Pont Development Team Londis Suffolk Forecourt Bringing our new branding to you with a click. Visit our 360 Virtual Tour at : http://360.skyeyeplus.co.uk/files/LondisTriangle/ Call us on 0808 178 8644 or visit joinlondis.co.uk * Terms and Conditions apply.
POLITICAL Market Review 2020 ▹ Government during a time of national members if their sites are designated Designated sites should receive an emergency. sites which will need to be kept wet if the annual visit by their Local Resilience The PRA has advised on the plan is enacted. The PRA also has input Forum (LFR), which is responsible Designated Filling Station (DFS) into the process on who is able to access for informing site managers of their network and communicated to fuel and how the fuel will be dispensed. obligations as DFS. CAR WASH ASSOCIATION The days of confirmation that these letters have the rogue hand been sent. car wash are numbered We continue to engage with both national and local offices as we feel that more proactive enforcement of existing permit requirements for disposal of trade (toxic) effluent will help close down the worst offending HCWs. HM REVENUE & CUSTOMS INVESTIGATIONS Over the past two years CWA has been in frequent meetings and correspondence with officials in HMRC – both in London and regional offices – to try to persuade them to take on the gangmasters who are running rogue hand car wash operations across the country. A fter an 18-month hiatus, David Metcalf, director of labour Despite the activities described in Dame Sara Thornton DBE, market enforcement (OLME) in three Sections 7 & 8 of the EAC Report, the former National Police Midlands postcodes have now been number or modus operandi of the Chief Council’s lead, has been undertaken. gangmaster-style HCW operations appointed Independent Anti-Slavery has yet to see substantive reduction. Commissioner (IASC). The Car ENVIRONMENT AUDIT However, under pressure to Wash Association, a wholly owned COMMITTEE (EAC) conduct more investigations, subsidiary of the PRA, has been After a formal Inquiry initiated by HMRC has started to direct more working with the IASC on their Mary Creagh MP, which involved investigations towards established Strategy Plan 2019/20 and with other public hearings in June 2018 at which (Registered company) automated stakeholders and organisations PRA provided expert testimony, car washes which should be fully combating modern slavery, including the findings were published in compliant and far fewer towards the Police Crime Prevention Initiative November 2018 as Hand Car the gangmaster HCWs which often (PCPI) and The Clewer Initiative. Washes: Tenth Report of Sessions harbour criminal activities. The PRA has brought together 2017-19. The report was rightly critical This results from officials being Accenture with The Clewer Initiative of many Government agencies unable to engage with criminal to undertake a major relaunch of and departments listing a series of elements because they do not have the Safe Car Wash App in 2020. constructive recommendations. sufficient police back-up for their One of the objectives is to provide The formal Government investigations and operations. the app user with details of nearby response was issued in February We are continuing to engage with Responsible Car Wash Scheme 2019 and virtually ignored all HMRC officials and we are confident (RCWS)-compliant car washes so recommendations with the exception that more illicit operations will be giving an alternative to the rogue of updating the Pollution Prevention targeted and caught in the year hand car wash (HCW). Guidance but without the level of ahead. detail provided in GPP13: Vehicle THE RESPONSIBLE CAR WASH washing & cleaning, which is used in SCHEME (RCWS) Scotland and Northern Ireland. The Responsible Car Wash Scheme The response also agreed to write was jointly launched by Downstream to supermarkets reminding them Fuel Association (DFA) and CWA of their environmental and other in 2018. Trials recommended by Sir responsibilities. PRA is pressing for 16 www.ukpra.co.uk
EVENTS Market Review 2020 Brian Madderson speaking at The To help you run your business better Forecourt Show we also select companies to come and present at our gatherings. Many of these presenters do offer something new in terms of new technology and as the events also involve free coffee and a buffet lunch there is also an opportunity to chat to the presenters. This year we are very grateful to the following organisations that have presented: Allego CBE Certas Energy Christie and Co EdgePetrol GripHero Henderson Technology Jackaman Insurance Services LCM Petroassist UK Suresite Group THE PRA ON THE Winckworth Sherwood LLP The meetings also provide a good opportunity for you to query any ROAD AGAIN “technical” issues that you may have, as we always have either Ray Blake or Phil Monger from our technical team on hand for you to chat to. The PRA team travels you managed to attend one of these We were also present at the NEC across the UK to events. We have enjoyed hosting in 2019 at the Forecourt Show and these events at hotels, arenas, sports National Convenience Show. This engage with its stadiums, conference centres and was a well-attended event in terms members racecourses. of exhibitors including many of the Members who attended the major oil companies and visitors. At O nce again, in 2019, the PRA meetings have said that they are the shows, visitors had the opportunity used planes, trains and glad they attended and that they to meet us on our stand or listen to automobiles to travel all learnt something. We always try to Brian as he presented on the panel over the UK to meet with members offer new presenters from external at its popular Business Breakouts companies and, as highlighted in Brian and Roadshows, in partnership with Madderson’s Review of the Year (pages “The meetings also Thames Communications. Our travels took us to Exeter 4-8), there is certainly a lot going on for us to update you on. The meetings also provide an opportunity (twice), Chatham, Knutsford, Belfast, Birmingham, Larkhall, Durham, offer an opportunity to learn about and question industry issues and to raise for you to query any Newmarket, Shrewsbury, Inverness, Swansea and Wakefield. We hope that any important matters you would like assistance with. “technical” issues” Delegates at one discussing the future of mobility. of our Business In 2020 we will be putting on a Breakouts similar number of events right across the UK. Our spring programme is confirmed with events booked at Exeter, Brands Hatch, Knutsford, Belfast, Nottingham and Larkhall. The autumn programme will be confirmed shortly with the details posted on our website www.ukpra.co.uk/en/events or watch out for your personal invitation in your inbox. 18 www.ukpra.co.uk
ASSOCIATE MEMBERS It’s vital that PRA members are provided with the best products and services to help them run their businesses as efficiently as possible. ASSOCIATE The PRA has strong links with the following Associate Members MEMBERS who provide excellent products and services to our industry: ACCENTURE FORECOURT EYE Accenture is a leading professional services company Forecourt Eye has developed a viable and proven with capabilities in strategy, consulting, digital, solution that delivers high ‘loss recovery’ results technology and operations. Leveraging its deep and bottom line savings to forecourt operators. In expertise across industries and business functions, it addition, it helps with crime reduction making sites helps organisations shape their vision for the future. safer for both employees and customers. ALLEGO FRANCHISEE FIRST Allego is one of the leading providers of charging Franchisee First is an innovative provider of fuel solutions and EV cloud services in Europe. Its bonds, as a simple, cost-effective means of meeting a pan-European network of almost 10,000 charge dealer’s financial security obligation to their wet stock points offers a seamless network across Europe. It suppliers. Fuel bonds are provided on an unsecured is experienced in the forecourt industry, supporting basis by Hiscox and, as such, dealers are free to clients such as Shell and TOTAL to achieve their EV utilise their freed-up cash as they see fit. ambitions. GRIPHERO APG CASH DRAWER GripHero is coming to revolutionise forecourt hand APG Cash Drawer is a global manufacturer of cash protection with the most effortless, easy-to-use and management solutions, serving a variety of customers convenient way possible for keeping hands clean at and industries. APG has built a reputation as the the pumps – dispensing recyclable hand-protection supplier of choice for cash management solutions directly from the nozzle. in retail, grocery, convenience, hospitality and quick serve around the world. HENDERSON TECHNOLOGY Developed for the convenience and fuel forecourt CBE market by Henderson Technology, EDGEPoS is one CBE is recognised as one of the leading innovators of the only worldwide epos systems that has been within the UK epos market. For more than three designed by retailers, for retailers. It offers a fully decades, it has been providing innovative software scalable, real-time solution supporting businesses solutions to a wide range of retailers throughout the from one to 100 lanes. country. A key factor in its success is its focus on the technological development of epos software. It has a JACKAMAN INSURANCE SERVICES dedicated research and development centre, staffed Jackaman Insurance Services provides insurance by expert engineers, and is proud to spearhead new solutions for an entire spectrum of commercial technological developments which go on to become clients. The company has expertise in dealing with the the industry standard. petrol retail industry and has bespoke contracts which have been developed for PRA members. CHRISTIE & CO Christie & Co is the leading specialist advisor for THE EV NETWORK buying and selling businesses in convenience Founded in 2017, The EV Network was formed as a retail and petrol filling stations. It is at the forefront dedicated EV charging infrastructure development of the sector, with years of experience identifying company to address the challenges faced by both and managing local, and often special, purchases in site hosts and chargepoint operators in rolling out granular detail. It has the largest team of specialist a network of EV charging infrastructure across the retail agents dedicated to the sector, with retail UK. The EV Network is able to provide its partners expertise available in each and every one of the with fully funded bespoke technology and service company’s 15 UK offices. solutions. EDGEPETROL WINCKWORTH SHERWOOD EdgePetrol is helping retailers throughout the UK A full-service law firm with a diverse client base, and Europe transform how they run their businesses. Winckworth Sherwood prides itself on providing EdgePetrol gives dealers real-time access to their key market-leading advice across a broad range of sectors metrics all in one place, allowing them to make informed and markets. Clients include national supermarkets decisions around volumes, margins, pricing and and convenience store operators, oil companies and procurement to enhance the profitability of their business. several of Forecourt Trader’s Top 50 Independent forecourt retailers. 20 www.ukpra.co.uk
Take control back. Tired of tying up your hard earned capital to secure a bank guarantee? Franchisee first fuel bonds are the smart, collateral free, alternative to secure your relationship with your wet stock supplier. It’s online, quick and easy to apply and there’s no collateral requirement. Find out how you can take control back of your capital today at www.franchiseefirst.co.uk in partnership with
Fuelling your business
Contact Harvest Energy today to become part of our expanding and exclusive partnership with Total. Becoming a Total dealership allows you to be part of one of the world’s largest oil brands. More than a brand, Total is a reference and a guarantee of quality and safety. By joining us, you will benefit from the strength of the brand, access to Total’s premium fuels, security of supply from a leading fuel distributor and expert advice from our dedicated UK team. To find out how we can fuel your business contact us today. +44 (0) 1932 843 354 harvestenergy.com
TECHNICAL Market Review 2020 TO EV OR NOT whether or not to embrace electric vehicle (EV) charging. When that will TO EV? be is dependent upon a vast range of factors. Some forecourt operators are being proactive and either already have EV charging or are planning to have it installed in the near future. Others are happy with their current business The PRA’s technical manager Ray Blake model and are waiting to react when the time is right. contemplates the adoption of electric vehicles THE FUTURE OF HYDROCARBONS I t is the question that spends a great My intention is to wait for at least Whenever I am in the company of deal of time bouncing around in another year and then most likely anyone linked to the petrol forecourt my head. My personal perspective invest in a hybrid car. Fortunately, we industry, the future of forecourts is that, along with the hundreds of have off-street parking and can easily supplying hydrocarbon fuels soon thousands of people that aren’t buying have an electric vehicle charging point becomes the topic of conversation. or leasing a new car, that would have installed which, with the right hybrid done had the decision not become complicated by the transition to low or car, should give me somewhere around 60 miles on the batteries before the “My intention is to wait zero emission vehicles, I am waiting to see which propulsion system will internal combustion engine is needed. Plus, for at least a few years, it will be for at least another year best suit my needs and be the most economic over the next few years. ULEZ charge exempt. This question will be asked millions and then most likely I live within the suburbs of London, of times in households across the UK. invest in a hybrid car” my wife and I have diesel cars. I drive The outcome of these decisions will around 12,000 miles per year, of which impact on the sales of hydrocarbon Although my expertise is centred on 75% is on long journeys around the vehicle fuels and hence the business the safe operation of petrol forecourts UK. However, we both use our cars to models of petrol forecourt operators. and not their financial viability, I will visit our daughter who lives less than The Government is pushing its pass on the predictions and plans for 15 miles away within the Ultra-Low policies and ambitions for low and the future of a range of different types Emission Zone (ULEZ) that is being zero emission vehicles, and the car of petrol forecourt from conversations introduced from October 2021. From manufacturers are scaling down the I have had, and that I believe to be then on, to visit her using either of our production of internal combustion rational and realistic. They are all cars, or to go anywhere else within the engine vehicles and ramping up the dependent upon the location of the south or north circular roads will cost production of hybrid and battery site and the demographic of their us – at the current rate – £12.50 each electric vehicles. At some point, petrol customers. time. forecourt operators will have to decide Firstly, I know that there are already plans for some city centre petrol filling stations to have their liquid fuel infrastructure replaced with EV charging points. Eventually, only zero emission vehicles will be permitted in city centres and as there are very few homes in cities that can accommodate off-street charging, the demand will be for EV charging. Secondly, it is predicted that sites located in suburbs where local policies such as low emission zones impact on people driving into cities, and where most people will be able to charge their cars on their own property or at their place of work, will see a rise in the numbers of hybrid and battery electric vehicles and consequently a reduction in the sale of liquid fuel. It has been identified that this category of site tends to be ▹ 24 www.ukpra.co.uk
Now nationwide MORE PROFIT WITH ” New ranges and strong promotions have helped drive sales in our Budgens stores. On the back of this success we are continuing to invest and build our business. ” Jonathan Fraser, Fraser’s Budgens Joi n u s n ow! call 0808 178 8644 WINNER 2019 or visit joinbudgens.co.uk The Shoppers’ Favourite Forecourt Retailer 2019
TECHNICAL Market Review 2020 located where a flammable atmosphere of Petroleum and Explosives is or may be present is certified to a Administration (APEA) and the standard appropriate for the situation. Energy Institute (EI) – advises that I doubt that this it is viable for all elements of EV charging should EV equipment to be manufactured be outside of hazard areas and that it to a standard that would enable is not acceptable for an EV charging it to be certified for use alongside system to be connected to an earthing petrol dispensing. A consultant who system separate from that of the filling specialises in the electrical safety of station. Plus, it advises that the EV petrol forecourts has been quoted charger supply must be controlled by as stating ‘the last place you should the forecourt emergency switching ▹ in fairly affluent areas and typically Pictured, above: consider installing EV charging is on system. This would apply to both low includes convenience shopping. So, as Filling stations a petrol forecourt’. However, there is and high voltage EV systems. need to consider the need for fuel dispensing positions their customer guidance on how EV charging may be The Institution of Engineering and decreases, the sites can benefit from demographic and installed on petrol filling stations. Technology (IET), Code of Practice for location when being able to accommodate more deciding whather to When it comes to the power ranges Electric Vehicle Charging Equipment short-term customer parking. replace liquid fuel of EV charging, we need to differentiate provides guidance on how EV charging infrastructure with EV Another category is motorway charging stations between two levels of charging. Firstly, may be installed in compliance with services and sites located on major there is low voltage which will provide the Electricity at Work Regulations roads. This is where it is most likely up to around 150kw. Above that is 1989. A new version is currently to be necessary to combine liquid high voltage up to 350kw. High voltage in draft to cover high voltage EV fuel sales alongside EV charging requires the supply to come from installations. To facilitate high voltage and possibly other zero emission an immediately adjacent electrical charging requires the installation of an fuels such as hydrogen. These are substation. electrical substation but the earthing the locations where customers are As I write, the published guidance arrangements for electrical substations likely to be either those that regularly doesn’t cover the installation of high are complicated and onerous. The travel long distances or those where voltage charging on petrol forecourts, advice from the PRA is that should you their typical daily journeys are short, but advice is being drafted and due for be considering an installation of this but they occasionally use their car to release within the next few months. nature, a specialist consultant should travel further and where range requires The Blue Book – to give it its be employed. refuelling or recharging en route. full title: Design, construction, The Petroleum Enforcement Liaison The final category of petrol filling modification, maintenance and Group has issued guidance (PELG – station is those that are in areas where decommissioning of filling stations, PETEL 20) available from the Energy there are no policies in place that will published jointly by the Association Institute website. This covers the legal force drivers into low or zero emission responsibilities of petrol forecourt vehicles and where typically their customers own older vehicles. These “There is no doubt that operators regarding EV charging. There is no doubt that for many sites will be the last to have to consider installing EV charging. the transition to low or forecourt operators the transition to low or zero emission vehicles I should also mention that there are already plans for new large EV zero emission vehicles will bring challenges. But during the four decades in which I have been charging-only sites to be located adjacent to major routes to cater for will bring challenges” associated with petrol forecourts, I cannot remember a time that wasn’t the predicted shortfall of EV charging challenging for some reason. points. The business case for these sites is comparable with many petrol filling stations in that their profitability depends on the provision of services other than vehicle fuelling such as coffee, food to go, etc. Some proposals include meeting rooms, temporary office facilities and restaurants so that vehicles can be filled with electrons while their occupants are elsewhere on site. SAFE OPERATION One major aspect of safeguarding against the flammable vapour being Some forecourt owners have been proactive and have already installed EV ignited on a petrol forecourt is to charging facilities ensure that electrical equipment 26 www.ukpra.co.uk
Beat the competition by being the best &(∗ )(. ∗.#,∀ /#% /,∀ ,#%,#∋! (&)%+∀ + ∀ %+, ∗),+ −∗(∗0 ∗−+∀ ∋(%(−∗ (&+ ,(%%+#1 + ....#%(&,#(−∃ " ! ! $ ! Providing turnkey solutions to the industry with the knowledge and global expertise !! sales@fma-systems.com | 37B, Monument Business Park, Chalgrove, Oxfordshire, OX44 7RW Telephone +44 (0) 1865 891 682
CAR WASH Market Review 2020 T he Car Wash Association (CWA) International Anti-Slavery Commission Prevention Mobilisation Hub could be is fighting hard to encourage and the Clewer Initiative) and Accenture, extended to non-compliant HCW. more strenuous enforcement the multi-national professional services A good working relationship has of existing regulations relating to company. The group is currently been established with the Office for car washing. Disappointingly, and exploring ways to improve the Safe Car Labour Market Enforcement (OLME) as has been well documented, the Wash app, originally developed by The whose Strategy Report 2018-19 covered Government’s focus has hitherto been Clewer Initiative, for a major update in the serious issue of non-compliant and on other matters and we are constantly 2020. As part of its pro bono Tech4Good criminal HCW. We now look forward to reminding them of the urgent need to programme, Accenture will support meeting Matthew Taylor, the OLME’s address the issues highlighted in the the redesign of the app. Ultimately, it new director, with a view to collaborating Parliamentary Environmental Audit is intended that the app user will be with his recently announced roundtable Committee’s (EAC) 2018 report. provided with details of nearby car discussion schemes. This resumé summarises the level washes that comply with the Responsible We have continued to engage with of the CWA’s commitment to more Car Wash Scheme (RCWS) that is also effectively and quickly deal with the actively supported by the Gangmasters serious criminal issues arising from the & Labour Abuse Association (GLAA), so “We are constantly uncontrolled spread of hand car washes (HCW) across the UK over the last 15 informing customers about alternatives to rogue HCWs. reminding of the need years. Disappointingly, it does appear that many Government departments and The newly appointed independent anti-slavery commissioner, Dame to address these issues” agencies still fail to understand that their Sara Thornton, with whom we had an lack of enforcement is a prime reason for extremely constructive meeting last HM Revenue & Customs both in London this phenomenon. summer, introduced the CWA to the and regional offices during 2018-19. With this in mind, the CWA has Police Crime Prevention Initiative (PCPI) Despite HMRC’s activities described formed a working group between The and the British Parking Association, in Sections 7 & 8 of the EAC Report, Clewer Initiative’s The Rt Reverend which runs the PCPI’s crime reducing the number or modus operandi of Dr Alastair Redfern (chair of both the Park Mark scheme. This is growing and gangmaster-style HCW operations has currently covers over 5,000 private and yet to see substantive reduction. The Car Wash public car parks across the UK where Notwithstanding an apparent Association’s Alexander non-compliant HCW could presently be lack of urgency in responding to the operating. The BPA is now considering recommendations concerning them in Russell outlines the adding the RCWS to its well-established the EAC Report, we continue to engage group’s latest work to auditing scheme. We also plan to meet with both national and local offices clean up the industry the Metropolitan Police Service with of the Environment & Rural Affairs/ PCPI to determine whether its new Environment Agency. We feel that more pro-active prevention and control of the A CLEAN FIGHT illegal disposal of toxic trade effluent into storm water drains will help close down the worst offending HCWs. We have met recently with the Local Government Association and we are undertaking specific local projects (e.g. in York and Harpenden) to highlight planning anomalies with HCW. This has proved to be an unusually challenging year or so with no less than 34 ministerial changes since Theresa May became Prime Minister. With the General Election now out of the way, we hope that business uncertainty will be reduced by getting Brexit done, and the Government will become more focused on domestic matters. This will bring about investment in services which will mean increased budgets for regulatory authorities allowing better enforcement to take place which might, in turn, affect the number of HCWs. The CWA remains committed and confident that the number of rogue HCWs will be significantly reduced. 28 www.ukpra.co.uk
You can also read