FLEET GUIDE TO PLUG-IN VEHICLES - Go Ultra Low
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FLEET GUIDE TO PLUG-IN VEHICLES
CONTENTS
3 28
Welcome
THE MANUFACTURER VIEW
WELCOME Views and ideas on the future GO ULTRA LOW FLEET GUIDE
From Andrew Jones MP of mobility TO PLUG-IN VEHICLES
EDITORIAL TEAM
Editor Ben Wicks (SMMT)
Deputy Editors James Parsons
UK fleets are agents of change. Many of the innovations that have made
INTRODUCTION
4 32 (PFPR); Ashley Martin
Design www.zedpublishing.co.uk cars greener, safer and more efficient in recent decades were pioneered
An electric vehicle is for now, FLEET PLANNING by fleets, and today the corporate sector is spearheading the growth of
not just the future Planning for an electric future GO ULTRA LOW TEAM the electric vehicle market.
Ben Wicks (SMMT)
Poppy Welch (SMMT)
The UK is now one of the fastest growing markets for electric vehicles
Jonathan Mitchell (OLEV) in Europe.
6 36 Jack Davies (DfT)
Victoria Judd (DfT) During the first quarter of 2016 an electric car was sold, on average every
PLUG-IN GRANT EXPLAINED DRIVER CASE STUDIES
13 minutes. That means we are on course to exceed 2015’s record total –
Long term funding secured Practice what you preach
For media enquiries contact a year which in turn saw more plug-in cars registered than in the previous
James Parsons (PFPR):
five years combined. Today fleets buy almost two thirds of all electric
goultralow@pfpr.com;
vehicles. More and more, fleet managers are discovering that running
WHOLE LIFE COSTS
8 38 LIGHT COMMERCIAL VEHICLES
+44(0)7725257792
electric vehicles no longer requires compromise – whether it’s on whole
Whole life costs, Electric vans: GO ULTRA LOW WOULD life costs, reliability, or popularity with drivers.
whole lot of savings Good commercial sense LIKE TO THANK THE
FOLLOWING PEOPLE FOR As a Government, we have demonstrated our long-term commitment to
THEIR CONTRIBUTION ultra-low carbon motoring. We are investing £600m by 2020 to support
TO THE GUIDE:
the plug-in vehicle grant, expand the charging infrastructure, and boost
TAX
12 41 ENERGY SAVING TRUST
John Pryor, Caroline Sandall
(ACFO); Ian Hill (Activa the electric car industry.
Electric cars: the answer Developing the business case Contracts); Jon Burdekin
to taxing questions for electric vehicles (Alphabet); David Bushnell Manufacturers have responded by expanding and improving the range
(Alphabet); Glen Blythe of electric vehicles on the market. There are now 32 cars, from luxury cars
(Art of Living); Monica Guise
to city vehicles, and nine vans eligible for the Government’s plug-in grants,
(Birmingham University);
CHARGING
16 42 ACFO
Andrew Garrad (Bristol 2015);
Nina Skubala (Business West);
so fleets have real choice.
INFRASTRUCTURE Advice from the Association Gerry Keaney (BVRLA); Dylan By 2040, our aim is that all new cars sold in this country will have zero
Meeting the charging challenge of Car Fleet Operators Setterfield (CAP Automotive); tailpipe emissions. And our ultimate goal is to make almost every car
Mark Constable (EDF Energy);
on the road ultra-low emission by 2050.
Simon Cook (GE Capital UK);
Rupert Pontin (Glass’s); These are ambitious targets. But we can achieve them if Government,
20 43 BVRLA
Sam Clarke (Gnewt Cargo);
Mark Jowsey (KeeResources); industry and fleets continue to work in partnership through schemes
FUEL COSTS Insight from the British Vehicle Chris Chandler (Lex Autolease); like Go Ultra Low.
John Webb (Lex Autolease);
Fuel for thought Rental and Leasing Association Nick Faulkner (Ogilvie Fleet); I want to encourage more fleets to be bold and see the benefits that electric
Nick Hardy (Ogilvie Fleet); Paul cars could bring. Green fleets don’t just enjoy financial incentives and tax
Jackson (TMC); David Hosking
(Tusker); Mark Sinclair (Tusker); breaks. They also project a positive corporate image to the outside world.
SMR
24 44 Simon Staton (Venson Automotive And employees love them.
Solutions); John Kendall.
Service, maintenance LOCAL AUTHORITY So I’m delighted to recommend this guide – and I hope it will help your
and little repair Tales of Green Cities
The information and data set out in fleet Go Ultra Low.
this guide are for general information
only, and though given in good faith,
are given without any warranty as to
26 46 their accuracy. Any views expressed in
editorial are not necessarily endorsed
by Go Ultra Low. All information correct
RESIDUAL VALUES FURTHER INFOMATION at date of publication, April 2016.
Andrew Jones MP
Closing the gap Go Ultra Low online Parliamentary Under Secretary of State at Department for Transport
2 GO ULTRA LOW FLEET GUIDE TO PLUG-IN VEHICLES WWW.GOULTRALOW.COM 3
CHOICE OF CARS
AND VANS CURRENTLY
AVAILABLE FROM GO
ULTRA LOW CAMPAIGN
INTRODUCTION TO ELECTRIC VEHICLES MANUFACTURERS
Meanwhile, demand for electric 100% ELECTRIC (CARS)
BMW i3
AN ELECTRIC
vans increased more than a fifth
(22%) last year with registrations Kia Soul
Nissan e-NV200
totalling 819 units versus 673 in
Nissan LEAF
VEHICLE IS FOR
2014. Almost all those light Renault ZOE
commercial vehicles are being Renault Twizy
operated by fleets and small Volkswagen e-Golf
Volkswagen e-UP!
NOW, NOT JUST
businesses with the best-seller
being the Nissan eNV200,
accounting for 643 registrations 100% ELECTRIC (VANS)
Nissan e-NV200
THE FUTURE
last year.
Nissan e-NV200 Combi
Currently 32 cars and nine
Renault Kangoo Van ZE
vans – either pure electric,
range-extended, plug-in hybrid or
PLUG-IN HYBRID CARS
hydrogen fuel cell vehicles – are Audi A3 Sportback e-tron
categorised as ultra low emission BMW 225xe Active Tourer
C
ost management is an Welch said: “Led by rapid increases vehicles that meet the eligibility BMW 330e Saloon
agenda-topping issue for fleet in the fleet sector, the sustained level criteria for the government’s BMW i8
operators so it makes sound of plug-in vehicle registration plug-in grant. Mitsubishi Outlander PHEV
Toyota Prius Plug-in
commercial sense that the ever- growth shows that electric cars are From city run-arounds, saloons
Volkswagen Golf GTE
expanding range of electric vehicles becoming the norm for drivers who and family hatchbacks, to 4x4s and
(EVs) should be considered for want to buy a fun, economical, sports cars, there is already a wide
PLUG-IN HYBRID VANS
operational use. stylish new car. range of models to meet corporate Mitsubishi Outlander PHEV 4Work
What’s more, fleets and small “Now, instead of facing high “Motorists and employee demands, while the
businesses are leading the charge for running costs, motorists can reap can reap the choice of vans embraces car derived, EXTENDED-RANGE
electric cars and vans as new vehicle the rewards of an economical rewards of an panel van and 4x4 models. ELECTRIC CARS
registration figures surged to record electric car, which can save the economical Corporate choice will continue BMW i3
levels in 2015, eclipsing the combined typical car owner hundreds of electric car, to increase further with an ON TRACK
total sold between 2010 and 2014. pounds every year. With this growth which can additional 40 models expected to
FROM CITY RUN-AROUNDS AND FAMILY
HATCHBACKS, TO 4X4s AND SPORTS FUEL CELL ELECTRIC VEHICLE
Data from Go Ultra Low reveals showing no signs of stopping, its save the come to the market over the next CARS, THERE IS ALREADY A WIDE RANGE Toyota Mirai
OF VEHICLES TO MEET CORPORATE AND
that electric car registrations proof that electric car ownership is typical car three years, according to the EMPLOYEE DEMANDS
accelerated rapidly last year to a the new normal. Now, it’s not a owner Department for Transport.
record 28,188 units, surpassing 2014 question of will motorists choose hundreds Allied to fleet decision-makers
volumes (14,532) by 94%. electric, but when.” of pounds searching for financial savings in
Further analysis of the data reveals The Mitsubishi Outlander PHEV every year” their choices of company cars and
that the fleet sector is outpacing fleet favourite tops registrations POPPY WELCH, vans is a desire to reduce their
overall UK electric car growth. for the second year running with
HEAD OF
GO ULTRA LOW organisation’s carbon footprint as a EV TECHNOLOGY
Within the national tally, the 18,250 11,681 units, up 118% on the policy of good corporate citizenship. EXPLAINED
corporate registrations comfortably previous year’s figures. The top EVs deliver on both counts
EVs are available from a
eclipsed the 2014 figure of 8,860, three is intact without change as making sound financial and
number of manufacturers,
representing a 106% increase. the Nissan LEAF ranks second environmental sense, while the
including Audi, BMW, Kia,
Fuelling the demand is a greater (5,236 registrations) with a 29% variety of models available ensures Pure electric: Plug-in hybrid: Range extender Hydrogen fuel
Mitsubishi, Nissan,
choice of models, and that trend will hike in uptake while the BMW i3 that the key fleet criteria of ‘fitness powered by a battery matches a battery for vehicles: powered cell vehicle:
Renault, Toyota and
continue through 2016 and beyond continues to enjoy popularity among for purpose’ is also met. charged from mains short trips of 10-35 by a battery with an powered by a fuel
Volkswagen. These eight
as motor manufacturers continue to motorists, coming third once more Ms Welch said: “The balance electricity with a miles with a standard internal combustion cell stack which
- Kia being the most recent
expand their range of EVs. with 2,213 registrations, 59% up of costs and benefits is unique to single charge range petrol or diesel engine engine generator uses hydrogen to
recruit - have joined the
The huge growth in demand year-on-year. electric vehicles and therefore it typically up to 100 for longer journeys on board, which produce electricity.
Go Ultra Low campaign to
has led Go Ultra Low to declare Transport Minister Andrew Jones is important that Go Ultra Low miles. Models giving a range of up charges the battery This then powers
encourage corporate and
that plug-in power is becoming said: “Soaring demand across the UK promotes the advantages of available include the to 700 miles. Models when it gets below the wheels of the
consumer demand of
a mainstream option for drivers shows that more and more people ownership and the financial savings BMW i3, Kia Soul, available include the 3%, can increase vehicle emitting
plug-in vehicles.
alongside petrol and diesel view electric cars as the right choice they can deliver on operating Nissan LEAF, Audi A3 Sportback the range of the only heat and water
powered cars. for them. They are green, cheap to budgets to fleet decision makers.” There are four types of Nissan e-NV200, e-tron, BMW 225xe car from 100 miles – with a range of
Last year, plug-in hybrid vehicles run and benefit both businesses and Go Ultra Low exists to help technology powering Renault ZOE, Active Tourer, BMW up to around 180. approximately 300
proved most popular among families. The government is motorists understand the benefits, electric cars, all offering Renault Kangoo ZE, 330e Saloon, BMW i8, The only model miles. The only
motorists, with 18,254 registrations, investing over £600 million during cost savings and capabilities of the different benefits to Volkswagen e-Golf Mitsubishi Outlander on the market that hydrogen fuel cell
a 137% increase on 2014. Fully the next five years to help position wide range of electric cars on the ensure fleets can match and Volkswagen PHEV, Toyota currently offers model eligible for
electric vehicle sales increased 48%, Britain as a world leader in the market, aimed at boosting uptake fitness for purpose with e-up!. Prius Plug-in and this is the BMW i3 the plug-in car grant
recording 9,934 registrations. technology, supporting skilled jobs as an alternative to petrol and business need: Volkswagen Golf GTE. Range Extender. is the Toyota Mirai.
Head of Go Ultra Low Poppy and driving economic growth.” diesel vehicles.
4 GO ULTRA LOW FLEET GUIDE TO PLUG-IN VEHICLES WWW.GOULTRALOW.COM 5
PLUG-IN CAR GRANT EXPLAINED
•C ategory 2 cars have CO2 Ken Ramirez, then Managing
LONG TERM FUNDING
emissions of less than 50g/km Director, Renault UK, and recently
and a zero emission range of promoted to the post of senior
between 10 and 69 miles vice-president, sales and marketing
SECURED FOR
• C ategory 3 cars have CO2 for Europe, said: “Differentiating
emissions of 50-75g/km and a zero ULEVs into three categories and
emission range of at least 20 miles. placing a clear £2,000 financial
ELECTRIC CAR BUYERS
benefit for choosing the most
The Department for Transport has environmentally friendly Category 1
said that grants will be maintained vehicles over the other two
at those levels until March 2018, or categories, is recognition that the
until a prescribed number of each UK sees a strong future in zero
The new Plug-in Car Grant secures more funding for a greater type of vehicle have been sold, tailpipe emission vehicles and the
number of electric car buyers, continuing the rapid growth of whichever is the sooner. air quality benefits they offer.
The trigger points for a further “The changes to the grant will
the UK’s electric vehicle market. review of grant levels will be help to encourage even more
40,000 Category 1 cars, and 45,000 motorists to consider moving to
combined sales of Category 2 and a zero tailpipe emissions vehicle
T
he government is predicting coming months, from 1 March 3 models. Those numbers include thanks to its remarkable affordability
a trebling of the number of revised grant levels were based cars sold before March 2016. As of and to also enjoy the revolutionary
electric vehicles (EVs) on on the environmental performance December 2015, 23,000 claims had driving experience they provide.”
Britain’s roads in the next two years of cars. been submitted for Category 1 cars
with £400 million of cash help Electric vehicles have been and 28,000 claims for Category 2 The ‘cost’ of the plug-in vehicle is
through its plug-in car grant. divided into three categories and 3 models. Transport Minister Andrew Jones Motor manufacturers welcomed the full purchase price paid for the
The plug-in car grant has been with two grant rates available – Additionally, to encourage zero said: “The UK is a world leader in the the Government’s continuation of basic vehicle – including number
extended with the Department for £4,500 for Category 1 models emission vehicle demand and uptake of low emission vehicles and grant aid, which has helped Britain plates, Vehicle Excise Duty and VAT.
Transport forecasting that the £400 and £2,500 for Category 2 and 3 maximise the number of cars the plug-in car grant has been key to become the fastest-growing market It doesn’t include any optional
million fund will enable more than models which are typically plug-in qualifying for government support, that success. We are determined to for EVs in Europe. extras, eg delivery charges or first
100,000 businesses and consumers hybrid vehicles with a petrol or a price cap has been introduced. keep Britain at the forefront of the Mike Hawes, Chief Executive of registration fee.
to benefit over the coming years – diesel engine: Market leader Category 2 and 3 models with a list technology, increasing our support the Society of Motor Manufacturers
THE MITSUBISHI
double the number that claimed the •C ars in Category 1 are those with price of more than £60,000 will not for plug-in vehicles.” and Traders (SMMT), said:
OUTLANDER PHEV IS
grant since it was launched in 2011. CO2 emissions of less than 50g/ THE UK’S FAVOURITE be eligible for the grant, but all The UK is also a leader in the “Manufacturers are offering
To ensure the rapid growth of the km and a zero emission range of PLUG-IN VEHICLE.
Category 1 vehicles will be eligible roll-out of hydrogen fuel cell DID YOU increasing numbers of these
(INSET RIGHT) THE KNOW? PLUG-IN VAN GRANT
UK’s electric car market over the at least 70 miles KIA SOUL EV. for the full £4,500 grant. vehicles, such as the Toyota vehicles – but a consistently
Mirai – which is eligible for the applied incentive regime is still
Nine vans currently qualify for the
£4,500 grant thanks to its zero needed over the coming years
plug-in van grant which delivers
tailpipe emissions. to help consumers adopt these
20% off the cost of a vehicle,
The Government has made a ground-breaking technologies.
A £400 up to a maximum of £8,000.
commitment that all cars and vans MILLION FUND “The changes to the regime will
on the road in the UK will be zero WILL ENABLE need effective management and To qualify, vans must have a
emission by 2050. MORE THAN SMMT looks forward to working gross weight of 3.5 tonnes or
Poppy Welch, Head of the 100,000 with government to ensure the less and have CO 2 emissions of
Go Ultra Low campaign, said: BUSINESSES planning needs of manufacturers less than 75g/km. Additionally,
AND CONSUMERS
“The new plug-in car grant secures and consumers – both fleet and eligible fully electric vans must
TO BENEFIT
more funding for a greater number private – are met.” be able to travel a minimum of
of plug-in car buyers, continuing 60 miles between charges,
the rapid growth of the UK’s plug-in hybrid electric vehicles
electric vehicle market. must have a minimum electric
“The new grant levels reflect the range of 10 miles and vehicles
lower purchase price of these must be able to reach a speed
vehicles and remains an excellent at least 50mph.
purchase incentive for motorists
However, vehicles which have
embracing this new, green
already received the plug-in van
technology. When you consider the
grant are not eligible for enhanced
‘in-life’ costs savings associated
capital allowances (100%), which
with plug-in car ownership – such
apply to zero-emission goods
as lower tax, fuel and maintenance
vehicles until 31 March, 2018.
– the electric vehicle proposition is
extremely attractive.”
6 GO ULTRA LOW FLEET GUIDE TO PLUG-IN VEHICLES WWW.GOULTRALOW.COM 7
WHOLE LIFE COSTS
WHOLE expensive, they have now found or intended to operate, 42% said Multiply that by a fleet of just 10
LIFE COSTS their place among corporate fleets. conventional hybrids, 30% electric DID YOU cars and the savings escalate to
WHOLE LIFE COSTS,
KNOW?
DEFINED “Traditional barriers to adoption vehicles and 26% plug-in hybrids. almost £25,000 over four years.
are being removed and electric Richard Cox, senior consultant at Similarly with the Nissan LEAF
vehicles are becoming increasingly Arval Consulting, said: “More and Acenta the monthly savings over a
Whole life
WHOLE LOT OF SAVINGS
viable options for businesses. more fleets are taking an interest in Ford Focus 1.5 EcoBoost Zetec S are
costs should
“Many organisations wrongly a wide range of alternative fuels and an impressive £77 a month. That
include: FLEETS
assume that electric vehicles are are keen to try them out in an equates to almost £3,700 over a
Vehicle CAN SAVE
unaffordable, won’t provide the operational sense to see which work ALMOST four-year operating cycle and almost
acquisition/
Hundreds and possibly thousands of businesses are potentially depreciation
desired range for their business for them and in which applications.”
£4,000 £37,000 on a fleet of only 10 cars.
requirements, or aren’t supported Whole life cost figures from Lex PER VEHICLE Whole life cost data for range
losing money because they are failing to use whole life costs as or
by enough charging infrastructure. Autolease illustrates how the higher OVER A FOUR extender and plug-in hybrid models
Yet if they took the time to look into P11D value of plug-in vehicles is YEAR PERIOD BY are more difficult to calculate
the basis for company car selection, according to experts. them in more detail, they would more than offset by significant
GOING ELECTRIC
because maximum savings are
if leasing,
realise that introducing models is fuel savings, notwithstanding delivered in electric mode. The
the effective
actually a lot less risky than first recent falls in the pump price of figures below assume 60% electric
lease rental
F
leet best practice dictates Yet many fleet decision-makers environmental benefits as they assumed. Battery technology is petrol and diesel, an estimated mode usage and a 15% weighting
that vehicle operating choice base their vehicle selection decisions produce substantially lower CO2 moving at such a rapid pace that 20-40% reduction in SMR costs is attached to official MPG for
decisions should be based on list price, P11D value or a headline emissions.” capital the typical working range of a pure and tax benefits. real-world motoring.
on whole life costs because they monthly lease rate rather than whole Finding the right operation for allowances electric vehicle on a full charge is SMR savings accrue because there However, the greater the number
provide the best forward estimate life costs. the right vehicle is key in all fleet extending all the time and today are fewer moving or wearing parts of miles covered in electric mode
of the real costs to an organisation, Chris Chandler, principal operations and that is no different is more than adequate for most in an electric car that will require the greater the whole life cost saving
in delivering business mileage, consultant at Lex Autolease, the UK’s with EVs. any VAT business journeys.” maintenance than in petrol or diesel as fuel expenditure will reduce.
over a replacement cycle. largest vehicle leasing and fleet Mr Chandler added: “In the right recovery Meanwhile, research by vehicle equivalents. Consequently, vehicle What’s more, in the figures below
Never has that been more management company with a fleet circumstance, where the right leasing and fleet management servicing costs will be lower. the BMW i3 Range Extender and
important than in respect of electric of more than 320,000 vehicles vehicle is used the whole life cost company Arval’s Corporate Vehicle The data reveals that, for example, Volkswagen Golf GTE are
vehicles (EVs) where, despite their including 4,500 EVs, said: “It is can be much less than their petrol corporation Observatory suggests an increased running a BMW i3 over four compared with best in breed petrol
higher P11D values, they are cheaper important that fleets look beyond or diesel equivalent.” tax relief adoption of EVs over the next three years/60,000 miles will deliver a and diesel rivals so for fleets
to operate than petrol or diesel the initial list price of the vehicle. David Bushnell, eMobility years. When fleets with more than potential saving of £51 a month over currently operating less efficient
equivalents. “Plug-in vehicles benefit from consultant at vehicle leasing and 100 employees were asked which rival models (see table) or £2,448 vehicles the savings would be even
the cost of
Whole life costs reflect all the government grants, tax breaks and fleet management company technologies they already operated over a four-year operating cycle. more significant.
borrowing
projected, vehicle-specific costs have significantly cheaper fuel costs, Alphabet, said: “Over the past 18
money
associated with operating a vehicle over all of which help to reduce the total months we’ve started to see a shift
its fleet life irrespective of whether a cost of ownership. In addition, these in attitudes towards electric vehicles.
vehicle is owned or leased (see panel). vehicles provide notable Once considered unfashionable and
EXAMPLE ‘WHOLE LIFE COST’ DATA
fuel
EXAMPLE P11D FUEL CO2 MONTHLY 2016/17
MODEL VALUE TYPE G/KM FUEL COST WHOLE LIFE COST
employer
Class 1A BMW i3 hatch 5dr auto £30,925 Electric 0 £38 £432
national BMW 116d SE 5dr auto £23,205 Diesel 96 £84 £460
insurance Audi A3 2.0 TDI SE 3dr £22,410 Diesel 108 £96 £479
contributions BMW 118i SE 5dr auto £22,270 Petrol 112 £115 £483
Nissan LEAF Acenta 5dr auto £27,835 Electric 0 £38 £391
service, Ford Focus 1.5 TDCi 120 Zetec S 5dr auto £21,515 Diesel 99 £89 £404
maintenance Ford Focus 1.5 EcoBoost Zetec S 5dr £21,315 Petrol 127 £132 £468
and repair Volkswagen Golf 1.6 TDI BlueMotion 5dr £22,275 Diesel 89 £80 £468
Volkswagen Golf 1.4 TSI GTE 5dr DSG £33,940 Petrol PHEV 39 £72 £549
VED Volkswagen Golf 1.4 150 TSI GT 5dr £24,215 Petrol 115 £117 £602
Volkswagen Golf 1.6 TDI 110 GT 5dr DSG £24,770 Diesel 104 £94 £584
Volkswagen Golf 2.0 TDI GT 5dr DSG £26,135 Diesel 119 £108 £636
insurance
Electric Range
BMW i3 hatch Range Extender 5dr auto £34,075 13 £72 £543
Extender
BMW 120d Sport 5dr step auto £26,800 Diesel 109 £96 £541
Whole life savings BMW 118i M Sport 5dr Nav £24,105 Petrol 126 £129 £546
RUNNING A BMW i3 OVER FOUR
YEARS/60,000 MILES WILL DELIVER
A POTENTIAL SAVING OF £51 A MONTH All whole life costs based on four years/60,000-mile with maintenance contracts. Fuel costs based on manufacturers’ official combined cycle MPG and UK average pump
OVER RIVAL MODELS (SEE OPPOSITE) prices at March 2016. 3p per mile has been used as the ‘fuel’ cost for electric vehicles. All whole life costs included plug-in grant where applicable. Source: Lex Autolease
8 GO ULTRA LOW FLEET GUIDE TO PLUG-IN VEHICLES WWW.GOULTRALOW.COM 9
WHOLE LIFE COSTS
CASE STUDY
SAGA GROUP
Saga Group calculates that it is on were calculated using the manufacturers’
WHOLE LIFE
PROFESSIONAL FLEET target to realise savings of £1,400 per combined mpg figures for the diesels at
COSTS DEFINED
EXPERTISE IS KEY TO vehicle per year after replacing four £1.37 per litre (the average price of diesel
UTILISING WHOLE LIFE COSTS diesel vans with a quartet of Renault at the time of the analysis). Electric
Many organisations do not Kangoo ZE models. mileage was calculated at 2.5p-per-mile.
employ full-time professional fleet
managers, particularly in the SME The introduction of the four zero emission The review demonstrated that there was a
sector, to manage their company vans followed detailed analysis and clear business case for replacing two diesel
car operations. recommendations provided by mobility vans with EVs, as doing so would produce
The trend for organisations to solution provider Alphabet’s AlphaElectric whole life cost savings of around £4,000
outsource fleet responsibility to a consulting team. per vehicle as well as reducing CO2.
third party and leave management
of the contract with perhaps the Saga Group, the UK’s leading provider Saga Group decided to replace the two
HR or finance department is of products and services tailored to the vans as well as two others with operating
highlighted by ACFO as one of needs of the over 50s, introduced the costs only marginally lower than a plug-in
the reasons why whole life costs vans in the interest of long term equivalent. The company, it was shown,
are ignored by many companies. sustainability and due to competitive would still make an overall fuel and
A further reason is the operating costs. running cost saving of £1,400 a year,
complexity around sourcing all while replacing four diesels rather than
the required data, but many leasing Alphabet used its AlphaElectric
two increased the annual CO2 saving to
companies actively promote the E-Valuation tool to study the day to day
just over eight tonnes.
use of whole life costs. Switching operation of 10 light commercial vehicles
to whole life costs as the basis for in a bid to test the viability of replacing Since delivery the four Kangoo ZE electric
company car choice can frequently them with electric vans. vans have been in daily use moving post,
enable employers to offer staff a office equipment and maintenance staff
more attractive car than perhaps Saga’s fleet and in house services
between the company’s locations in Kent.
they may have previously been manager, Lukas Jansen Van Vuuren,
entitled to have. worked with the AlphaElectric consulting Mr Jansen Van Vuuren described the
Utilisation of whole life costs team to carry out the necessary analysis fleet’s move into EVs as ‘plain sailing’. He
was a major topic at an ACFO of the operating patterns and running said: “The drivers use them all day, plug
seminar where deputy chairman costs of a mix of Citroën (Berlingo, C1 or them in to charge at night and come back
and fleet manager Caroline Nemo), Vauxhall (Combo or Vivaro) and the next morning and off they go. To the
Sandall said: “The fact that many Volkswagen Caddy diesels ranging from drivers they are just like a normal vehicle.”
businesses don’t use them is a 1.2 to 1.9 litres engine capacity.
symptom of lacking internal fleet sources including internally and baseline and start building up data Employee choice The vehicles carry Saga group’s livery,
management knowledge, suppliers. It is critical to capture all that may be required. Treat whole AN INCREASING NUMBER OF BUSINESSES The project monitored the vehicles’ daily with a discreet badge on the rear as the
HAVE A RELATIVELY OPEN FLEET POLICY AND
particularly in SME fleets. income and expenditure to create life costs as a menu because you ARE MINDFUL OF THE DIFFERENT ENGINE average and highest daily mileage over only clue that they run on electricity.
TECHNOLOGIES AND FUEL TYPES AVAILABLE
“Whole life costs should be a baseline position.” can’t always start with perfection. a 10-week period. Each vehicle was
He said: “As a company we are really
embedded in every company, Mike Brazel, specialist consultant “One of the biggest issues with whole life costs was the compared with an equivalent plug-in
but it is not because it is not (funding and taxation), at LeasePlan, whole life cost modelling is shifting straightforward mechanism for
aware of the importance of reducing
vehicle to establish whether it was
known about or understood in added: “Many businesses struggle costs – residual values, purchase doing so to easily identify the emissions and we also want to keep our
possible to make a positive business case
many cases. That is why it is to capture all their costs in one “Whole life price discounts, funding costs and optimum choice. fleet on a sustainable path to the future.
for going electric to reduce the fleet’s
important that companies have place. But it is critical to measure, costs should be interest rates and insurance, as well For many years diesel has been The AlphaElectric consulting team
environmental impact.
a level of internal fleet expertise.” monitor and manage what is embedded in as supply chain changes and the fuel of choice for fleets. But now enabled us to measure and validate our
But, she continued: “Whole life really happening. Whole life cost every company, legislation – therefore businesses with the ever-growing EV choice, Mileage monitoring revealed that six of vehicle options based on our own
cost management offers space to management is a continual process but it is not should ensure they monitor and Mr Hardy, who has a plug-in hybrid the vans never exceeded 75 miles per specific activities.”
be flexible and should be adapted of review, and using it will deliver because it is not look for change and try to predict as his own company car, said: day, and three others exceeded 75 miles
to the needs of individual fleets. significant benefits to both known about or the future.” “Fleets should not be restrictive in on only 2%-3% of days. In the next
“Businesses should consider employees and the business. Ogilvie Fleet has promoted the their vehicle choice by self-imposed stage of the review, the consulting team
understood in
how they can refine their current “Using whole life costs as the use of Ogilvie True Cost (OTC) – limitations. Fleet operators should compared the diesels’ leasing and
many cases.
company car choice model and basis for vehicle selection is its own interpretation of whole life be open to alternative power
That is why it is running costs with those of zero-emission
implement improvements.” eminently doable, but there must costs incorporating all known sources – there is no need to be
important that electric vehicles (EVs).
Underlining that data capture be a desire to do it.” vehicle expenditure – as the basis fearful of new technologies.
was critical to fleet cost Ms Sandall, who has more than companies have for company car choice lists for a “We are finding that an increasing The Kangoo ZEs were selected as the
management, she continued: 20 years' fleet management a level of number of years. number of businesses have a nearest like-for-like equivalents, with cost
“Businesses cannot achieve a experience, continued: “Whole life internal fleet Nick Hardy, sales and marketing relatively open fleet policy and are profiles based on 48-month contracts and
whole life cost management costs management doesn’t have expertise” director of Ogilvie Fleet, said it was mindful of the different engine 10,000 miles per annum. Diesel fuel costs
structure unless they have effective to be complicated. Businesses can CAROLINE SANDALL vital that fleet managers kept all technologies and fuel types
data which comes from many take a step transition to get a FLEET MANAGER vehicle options open and using available,” said Mr Hardy.
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TAX
consumption and display their there could be a series of more Employers over the four-year and vans that emit less than 100g/km government’s Plug-in Van Grant.
ELECTRIC
‘green’ credentials to customers, graduated thresholds. period businesses will save of CO2 are zero rated for road tax, DID YOU In contrast, on cars with
KNOW?
suppliers and shareholders. Like BIK tax, employers’ Class 1A themselves a total of £2,056 in delivering additional cash savings emissions of 76-130g/km and above
national insurance contributions (NIC), Class 1A NIC by choosing the to companies. 130g/km companies can write
CARS:
SAVINGS IN COMPANY charged at the rate of 13.8%, are linked BMW i3. On a fleet of just 10 However, the VED regime for cars down 18% and 8%, respectively,
CAR BIK TAX AND CLASS to a car’s P11D value and CO2 emission models that equates to a saving will change from 1st April, 2017. of the cost of a car against their
1A NATIONAL INSURANCE figure. Therefore, the lower a car’s CO2 of more than £20,000. Nevertheless, the changes still taxable profits each year, on a
THE ANSWER
OVER A FIVE
The government has confirmed, emissions the lower the NIC charge. encourage take-up of EVs. reducing balance basis. Business
YEAR-PERIOD,
following a review, that company Table 1 (below) highlights BIK tax VAN BIK TAX CHARGE EVs purchased prior to the change COMPANY CAR expenditure on vans (ex-VAT) that
car benefit-in-kind (BIK) tax will rates on EVs to 2019/20 and the rates The government wants to increase in 2017 will continue to be exempt DRIVERS are not zero-emission qualify for tax
TO TAXING
continue to be based on vehicle for a car in the 100-104g/km bracket. fleet demand for zero-emission from VED despite the Chancellor’s CAN SAVE relief as capital allowances at the
THEMSELVES
CO2 emissions from 2020/21. (For each tax year add 3% for diesel vans so has extended BIK support announcement. rate of 18% a year on a reducing
BIK tax rates are known until the cars up to a maximum of 37%). for electric models. In announcing the change, £5,963 balance basis.
QUESTIONS
end of 2019/20 – which enables So, comparing a zero emission Full BIK tax exemption status Chancellor of the Exchequer George IN BIK However, once again with the
businesses to plan their vehicle BMW i3 (£30,980 on the road) with an of electric vans ended in 2015/16 Osborne said: “The reformed VED TAX focus firmly on encouraging
choice lists and calculate the almost identically priced 104 g/km with 20% of the rate paid by system retains and strengthens the BY CHOOSING corporate demand for EVs, Budget
AN EV
financial cost to themselves and Volvo V60 D4 SE Nav (£31,045), conventionally-fuelled vans being CO2-based first year rates to 2016 announced that the 100% First
employees. reveals the tax benefits for lower levied. But Budget 2016 confirmed incentivise uptake of the very Year Allowance would be extended
T
he motoring tax regime is But prior to announcing rates (20%) and higher (40%) rate drivers that the 20% rate will be retained cleanest cars.” for a further three years to April
designed to favour the for future years, the government is (see table 2) and the Class 1A NIC for a further two years – 2016/17 The first year VED rate and the 2021. However, the CO2 emissions
take-up of electric vehicles to consult on reform of the bands savings for employers (see table 3) and 2017/18 – instead of rising to standard rate for EVs is shown below: threshold for qualifying cars will
(EVs) with Government grants for EVs (below 75g/km) to refocus over four years. 40% and 60% of the main rate in reduce to 50g/km from 75g/km.
furthering the incentives for fleet demand on the cleanest cars. Over the four-years to 2019/20, those years. In giving fleets a two-year
corporate customers. That suggests that rather than a company car drivers will pay a total It means that based on the main NEW VED SYSTEM FOR CARS window to realign their company
Additional funding is available to single rate of tax for cars with of £2,981 less in BIK tax on the BMW rate BIK charge in 2016/17 of £3,170 REGISTERED FROM 2017 car policies, the government also
help with the purchase of vehicles emissions of 0-50g/km and for i3 if a lower rate taxpayer and £5,963 the charge for an electric van will EMISSIONS FIRST YEAR STANDARD
announced that from April 2018, to
and installation of chargepoints, those with emissions of 51-75g/km if a higher rate taxpayer. be £634, with an inflation-linked (g/km) OF CO 2 RATE RATE* reflect falling vehicle emissions, the
meaning there is a solid business increase due in 2017/18. Employers 0 £0 £0 18% capital allowance would apply
case for introducing such cars and pay NIC on the taxable benefit. to cars with CO2 emissions of
1-50 £10 £140 Nissan LEAF
vans to fleet operations. • E lectric van BIK tax charge 2016/17 EMISSIONS FREE,
51-110g/km with vehicles above
The business case for TABLE 1: BIK TAX RATES (20%/40%) taxpayer: £127/£254. 51-75 £25 £140 ULTRA LOW TAXES 110g/km being in the 8% category.
introducing EVs is further NIC charge: £88. 76-90 £100 £140
supported by the requirement of CO2 (g/km) 2016/17 2017/18 2018/19 2019/20 • Petrol/diesel van BIK tax charge
companies – employing 250 or 2016/17 (20%/40%) taxpayer:
0-50 7 9 13 16 *C ars above £40,000 pay a £310 supplement
more people in the UK or with an £634/£1,268. NIC charge: £437. for five years
annual turnover exceeding €50
51-75 11 13 16 19
million and a balance sheet Therefore, drivers will save
exceeding €43 million – to £507/£1,014 in tax on a plug-in van. CAPITAL ALLOWANCES
100-104 17 19 21 24
complete energy audits, including Employers will save £349 in NIC per Capital allowances enable
fuel used by company cars and plug-in vehicle, which on a fleet of companies to write down the
vans and privately-owned vehicles TABLE 2: DRIVER TAX BENEFITS just 10 vans delivers a cash saving cost of purchasing cars and
driven on business trips. of almost £3,500. vans against taxable profits.
The deadline for the first audit P11D value 2016/17 2017/18 2018/19 2019/20 Tax rates for zero-emission For capital allowance purposes
reports under the four-yearly vans will then increase on a tapered the actual price paid for the car,
reporting Energy Savings i3 £30,925 £433/£866 £557/£1,113 £804/£1,608 £990/£1979 basis to 5th April, 2022: 40% in including blocked VAT and any
Opportunity Scheme (ESOS) 2018/19, 60% in 2019/20, 80% in discount, is used when calculating
V60 D4 £30,990 £1,240/£2,480 £1,364/£2,727 £1,488/£2,975 £1,673/£3,347
was December 5 last year with 2020/21, 90% in 2021/22 and then the allowance; as such list price has EXAMPLE OF CAPITAL ALLOWANCE BENEFITS
companies’ next submissions equalising with the standard charge no relevance for capital allowance Nissan LEAF Visia MODEL: Vauxhall Insignia 2.0
Saving £807/£1,614 £807/£1,614 £684/£1,367 £683/£1,368 MODEL:
due by December 5, 2019. in 2022/23 – a two-year extension purposes unless that was the price PRICE:£24,990 CDTi 170PS Start/Stop
Furthermore, approximately from the original timetable. paid for the car. ecoFLEX 5dr
CO2 EMISSIONS: 0g/km
1,800 companies listed on the TABLE 3: EMPLOYER TAX BENEFITS The government says it will To encourage the take-up of EVs, PRICE: £25,004
WRITING DOWN ALLOWANCE:
London Stock Exchange and local review the impact of the incentive cars and vans with CO2 emissions 100% CO2 EMISSIONS: 118g/km
authorities must report their P11D value 2016/17 2017/18 2018/19 2019/20 at Budget 2018 together with of 75g/km or less are eligible for CORPORATION TAX 2015/16: WRITING DOWN ALLOWANCE: 18%
greenhouse gas emissions, which enhanced capital allowances for 100% first year capital allowances to 20% CORPORATION TAX 2015/16: 20%
includes emissions from cars and i3 £30,925 £299 £384 £555 £683 zero-emission vans. 31st March, 2018 thereby giving TAX RELIEF: £24,990 x TAX RELIEF: £25,004 x 18%
vans ‘owned or controlled’ by companies cash flow benefits. 100% x 20% = £4,498 x 20% = £900.14
organisations. V60 D4 £30,990 £855 £941 £1,026 £1,155 VEHICLE EXCISE DUTY However, in respect to zero- Tax written down value Tax written down value
Embracing EVs is one way that Presently EVs are exempt from paying emission vans, this benefit is limited carried forward = nil carried forward = £20,503.28
businesses can drive down energy Saving £556 £557 £471 £472 Vehicle Excise Duty (VED) and all cars to businesses that do not claim the
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TAX
CASE STUDY
THE ART OF LIVING GROUP
EVs: THE SALARY
anyone mostly doing short, local obtaining an EV as a second Introducing five Mitsubishi
DID YOU
journeys will find a fully electric car. Conversely, for a family Outlander PHEVs to The Art
KNOW?
car is ideal. The combination of requiring a conventional car at of Living Group’s company
SAVING OPTION
the petrol hybrid electric vehicle weekends, an EV may be ideal
car fleet is paying financial
is often a good compromise as just as a car for the regular
dividends for the employees
it offers electric driving for short daily commute.
ART OF as well as the organisation.
journeys with the compromise With salary saving, there are
LIVING HAS
“Choosing of a petrol engine to reduce ‘range no tax limits on the number Drivers are each saving
Salary sacrifice car schemes are growing in anxiety’ for longer journeys. of cars employees can have, HALVED ITS
the right EV for thousands of pounds in company
popularity for employees with no entitlement each individual If an EV does not work for a therefore salary sacrifice is an FUEL BILL car BIK tax and the company – and two points have been
particular company car driver, ideal opportunity for someone SINCE
to a company car or a cash alternative. What’s driver is INTRODUCING calculates that it has cut its fuel installed at the company’s
critical to because they typically drive to drive an EV as their first or
more, some employers are introducing the salary FIVE MITSUBISHI bill by as much as 50%. headquarters, one of which
their success.” a very high daily mileage with second car. The scheme gives OUTLANDER
is available free of charge to
sacrifice option in place of company car schemes. DAVID HOSKING
little opportunity for recharging, drivers flexibility to adapt their PHEVS TO ITS The successful interior fittings
FLEET customers. Employees are also
David Hosking, chief executive of Tusker, a leading TUSKER drivers should look into car to their journey profile. company is also making savings
equipped with an Ecotricity Electric
in Class 1A National Insurance
provider with more than 250 schemes, explains Highway swipe card to allow them
contributions and, having purchased
why electric vehicles are a particularly attractive to recharge at other locations.
the plug-in cars, is benefiting from
salary sacrifice option. 100% capital allowances. Mr Blythe calculates he achieves
Two of the cars are also London around 30 miles on electricity
Congestion Charge registered so when the battery is fully charged
are exempted from the daily and more than 600 miles on a
E
lectric vehicles (EVs) work The most popular EV on Tusker’s charge when driven into the zone. tank of petrol.
extremely well in car benefit fleet, accounting for more than half Glen Blythe, a director of the He explained: “We’re very
schemes. Salary sacrifice or of total orders, is the versatile
family-owned, Camberley-based eco-minded and always looking
‘salary saving’ as we like to call it, Mitsubishi Outlander PHEV which
company, said: “Our attention for ways to reduce our carbon
works by eligible employees saving appeals to drivers looking for a
was drawn to an advert in a footprint. I live five miles from the
part of their salary in exchange for bigger family car.
a company car. Tusker has been at the forefront
motoring magazine and I office and charge the cars every
As these schemes are viewed of promoting EVs for several years. investigated. From both a two days. If I have a longer journey
by the government as a benefit, The executive board of directors at financial and environment the petrol engine kicks in. From
employees need to pay BIK. Tusker drive EVs and the company perspective it was a no-brainer.” filling up every week I’m now
This tax works on a sliding scale has installed four chargepoints at refuelling every five or six weeks.
The company traded in five diesel
based on the CO2 emissions of each its Watford headquarters for
SUVs for the Outlanders a year “We run the cars as frequently
vehicle, EVs attract the lowest tax employees and visitors to use. EVs
liability of just 5%. With Tusker’s are available to all company car
ago and Mr Blythe, explaining that as possible on electricity as that
Salary Saving Car Scheme, National drivers at all grades and to non-car the tax saving was the equivalent is where we gain the maximum
Insurance and income tax savings eligible staff on Tusker’s own Salary of a pay rise, said: “I’m now paying financial benefits in terms of fuel
heavily outweigh BIK, enabling the Saving Car Scheme. £14 a week in BIK tax and I was cost savings.”
employee to save hundreds of Employers also have a role to paying £50 a week. That’s brilliant.”
The Art of Living Group operates
pounds each year. play. Installing charging points in
The financial savings are even a 15-strong fleet of cars and vans
They have been growing in the office car park is essential to
popularity particularly as encourage employees to adopt EVs
greater for Mr Blythe’s father, and Mr Blythe anticipates
government policy keeps related and drive down the company’s Clive, managing director, who has introducing more ULEVs to the
taxes very low, and manufacturers carbon footprint. seen his annual BIK tax reduce fleet in the future.
have responded with an ever- Choosing the right EV for each from around £10,000 to below
He concluded: “The cars will more
expanding range of low emission individual driver is critical to their £1,000. Mr Blythe’s brothers and
than pay for themselves over three
models to meet all needs and success. Different types of low fellow directors, Dean and Craig,
years saving the business and
pockets; from the family-friendly emission vehicles work best under are also making significant savings
drivers thousands of pounds in tax
run-around to the top-of-the-range different sets of circumstances. alongside warehouse manager
supercar. Drivers do need to do some and fuel costs. Other businesses
Phil Johnson.
It’s no surprise then that nearly research when first looking into should go down this route. I firmly
half of all cars ordered through these vehicles and fully understand Three of the men have had believe ULEVs will increase in
Tusker’s Salary Saving Car Scheme their journey profile. chargepoints installed at home – popularity as more business take
have a CO2 of less than 100g/km An electric car with range extender Recharging the property configuration means advantage of the cost savings;
ULEVs WORK EXTREMELY WELL the other two employees have not
and 5% of those are EVs with CO2 works well for someone with a fairly
AS SALARY SACRIFICE CARS
you cannot ignore them.”
of 75g/km or less. long but predictable commute, while
14 GO ULTRA LOW FLEET GUIDE TO PLUG-IN VEHICLES WWW.GOULTRALOW.COM 15
travel up to 700 miles without The vast majority of residential, HOME RECHARGING
needing to refuel. business and public chargepoints DID YOU Government incentives mean a
KNOW?
Poppy Welch, Head of Go Ultra available today are fast-chargers. dedicated home recharging point can
Low, suggests that fleet decision They use AC current and take be installed at a heavily subsidised cost.
makers and company car and van 2–4 hours. The government has pledged
drivers should consider updating Customers are advised to talk £15 million to 2020 to continue
their approach to plug-in vehicles. to a chargepoint supplier about the Electric Vehicle Homecharge
MORE THAN A
She said: “The reasoning is simple the differences, as the configuration Scheme (EVHS) giving electric
THIRD OF UK
– drivers do not have to go out of of the chargepoint required will MOTORISTS car drivers a grant of £500 per
their way, regularly spending time depend on the EV chosen. NEVER installation, which on average
at petrol stations, when it is easy will cover around half of the cost
TRAVEL
to ‘refuel’ from the comfort of their PUBLIC RECHARGING POINTS of getting a chargepoint.
own home, simply by plugging in There are already more than 10,000
MORE Individuals who are named by
an EV. publicly accessible chargepoints
THAN their employer as the primary user
“Electric vehicle sceptics across the UK – many provided by 80 MILES of an eligible electric vehicle qualify
IN A SINGLE TRIP,
sometimes question the usability government investment and others COMFORTABLY
for the scheme.
of the UK’s roadside charging by private organisations. WITHIN THE All electric cars remain eligible for
infrastructure, but this data indicates On a daily basis, more 100-MILE RANGE the EVHS grant, even if they are no
OF MOST PURE
that it is an important, but not chargepoints are opening in longer eligible to receive the plug-in
ELECTRIC
critical, facility for most electric public car parks, shopping centres, VEHICLES car grant because of the recently
vehicle owners.” railway stations, hospitals and introduced £60,000 price cap.
other locations to further expand Some vehicle manufacturers,
RECHARGING YOUR BATTERY the UK’s recharging infrastructure. energy companies and chargepoint
Chargepoints are categorised by Chargemaster is the largest suppliers may also pay the additional
CHARGING INFRASTRUCTURE
the power they produce. It’s operator of EV chargepoints in the cost, making the entire installation
measured in kilowatts (KW), and UK and last year announced plans process absolutely free.
MEETING THE
publicly accessible chargepoints a chargepoint on the strategic the higher the number, the faster a for a near doubling in its POLAR Typically, it is the responsibility
and that figure is growing daily. road network.” vehicle’s battery will be recharged. chargepoint network taking it of employees to arrange installation
This compares to almost 8,500 Meanwhile, data from leading Most networks offer a mix of to around 7,000 locations. of the recharging unit and pay any
CHARGING
petrol/diesel forecourts across infrastructure provider, ‘rapid’ (43kW-50kW), ‘fast’ (7kW- A chargepoint location map outstanding cost following
the UK. Chargemaster, showed that more 22kW) and ‘standard’ (up to 3kW) is available on goultralow.com. deduction of the grant.
Research from the RAC than 90% of EV recharging takes charging options:
CHALLENGE
Foundation found that an EV driver place at home. • R apid – will charge a battery from
will now be no more than 20 miles Concern around the accessibility flat to 80% in under 30 minutes.
from a service station chargepoint of the UK’s recharging infrastructure They are generally installed at
on 98% of the motorway system in is frequently cited by drivers in motorway service stations
Finding somewhere to charge your England, 98% of the 270 miles of surveys as one of their key issues enabling 100% EVs to travel across
electric car has never been easier, motorway in Scotland and 100% of in EV decision-making. the country, as well as retail outlets
the 83 miles of motorway in Wales. But, the reality suggests that and other locations.
thanks to home and workplace
When the analysis is broadened such concerns are misplaced. • Fast – can re-charge a battery
recharging as well as a rapidly growing out to the whole of the strategic The average UK commute is less in two to four hours (depending
network of public chargepoints. road network managed by Highways than 10 miles and the majority of on battery size) and can be
England – not just motorways but plug-in car and van drivers are able installed in public locations.
also major A roads – then 82% of to charge their vehicles entirely at • Standard – generally used at work
T
he national network of the system is within 20 miles of a home or work, only occasionally and home and also in car parks and
vehicle chargepoints is chargepoint. Equivalent figures for using public chargepoints as a other ‘destination’ locations like
growing rapidly to the extent Scotland are 28% of the 1,963 miles back-up or additional top-up for supermarkets and cinemas. It
that the number of publicly of strategic road network and in longer journeys. usually takes more than eight
accessible points has overtaken the Wales 45% of the 1,044 miles of As well as only commuting short hours to fully charge a battery ,
number of fuel stations in the UK. strategic road network. distances, more than a third of UK but suitable for a top up charge.
Add in to the mix the The roll out of the charging motorists never travel more than
number of workplace and home infrastructure means that Highways 80 miles in a single trip, comfortably Charging involves attaching an
chargepoints and there are Going places England is already close to the £15 within the 100-mile range of most electric cable between the car
thousands more locations where MOTORISTS DRIVING million commitment made in the pure EVs. For those who regularly and the socket. Standard charging
BEYOND THEIR
vehicles can be ‘plugged in’ than Government’s 2014 Autumn need to travel further or don’t have uses the universal three-pin plug.
VEHICLE’S RANGE
there are forecourts. CAN MAKE USE OF Statement, to ensure that by 2020/21 a driveway for home-charging, Most plug-in vehicles on sale today
THE MORE THAN
Go Ultra Low estimates that there 10,000 PUBLIC
electric car drivers would never the electric vehicle with the longest use J1772 or Type 2 connectors for
are currently more than 10,000 CHARGEPOINTS be “more than 20 miles from range (Toyota Prius Plug-in) can ‘fast charging’, with different options
available for ‘rapid charging’.
16 GO ULTRA LOW FLEET GUIDE TO PLUG-IN VEHICLES WWW.GOULTRALOW.COM 17
CHARGING INFRASTRUCTURE
CASE STUDY
MARK CONSTABLE, EDF ENERGY
Selecting a BMW i3 range cars like the BMW i3 range extender
extender as his new car, Mark is how many electric miles drivers
Constable estimated that 75% clock up out of their total mileage."
of mileage would be electric
Employers generally take the view The BMW i3's electric range
and 25% petrol power.
that employees will achieve BIK tax almost exactly matches Mr
and fuel cost savings as a Reality has actually proved very Constable's commute one-way,
consequence of choosing an EV different. In the twelve months of and supported by its two-cylinder
so they should not be put off by living with the car, Mr Constable, 647cc petrol engine it can travel
any recharging unit cost. who receives a cash allowance in up to 180 miles, for longer
Additionally, asking an employee lieu of a company car, has business journeys.
to fund any further recharging unit clocked up more than 13,000
cost indicates a commitment from miles and only 823 miles have Mr Constable, manager of systems
them to support a corporate move utilised the petrol engine. and process readiness at EDF
to carbon footprint reduction and Energy, chose the car because he:
also safeguards employers from It means around 93% of mileage, "wanted to reduce my own carbon
‘losing’ out in the event of an including a regular 130-mile footprint, and contribute to
employee moving. round trip commute, during which improving my local environment".
However, other employers could the car is recharged in his
decide to remove any barrier to employer's car park, has so far Key behavioural lessons that Mr
employees choosing an EV and opt been on electric power at a cost Constable has learned in driving
to fund any additional recharging
to date of less than £200. an electric car daily is to "pre-
unit cost. Such a move would incur condition" the vehicle before
a BIK tax charge at an employee’s What's more, Mr Constable points commencing a journey.
marginal rate. out that driving the BMW i3 range
Ideally, the recharging point extender is actually more "At home on colder mornings I
should be installed in a garage convenient and time-saving than demist the car and warm it up
or on a driveway. A range of a petrol or diesel car as he's not while it is plugged in so as not to
homecharging hardware, both use battery charge, and the same
having to stop at a forecourt to
floor and wall-mounted, is available when leaving work in the evenings.
refuel once a week.
to cater for multiple users and Additionally, rather than using the
vehicle types. He’s electric
93% OF MARK
His car is subject to a four- battery to heat 'space' in the car I
However, if neither a garage or CONSTABLE’S year/60,000-mile lease agreement
6,250 MILES IN HIS switch on the heated driver's seat
driveway option is available, a similar with around two-thirds of journeys
grant is offered to local authorities
BMW I3 RANGE which uses less energy."
EXTENDER HAVE
BEEN ON ELECTRIC
estimated to be business miles.
to have residential on-street Nevertheless, Mr Constable uses
POWER, COSTING
chargepoints installed. ONLY £90 Whether using workplace or public the car's navigation suite and his
recharging points or one at home, iPod for music during journeys,
Mr Constable says ULEV motoring pointing out: "I don't make any
For safe and faster home charging includes dual charging boxes CHARGE ON THE MOVE delivers financial benefits.
it is recommended that a weather allowing one or two vehicles to Nissan is working on a wireless
compromises."
proof, wallbox is installed on a be plugged in simultaneously as system with a company called Plugless He cites the price of electricity
Finally, his message to fellow
dedicated electrical circuit, and well as freestanding chargers. that passes power to vehicles when compared with the price of petrol or
drivers is "do your homework
an earth stake is fitted if necessary. Alphabet has launched a they’re parked in the right place. diesel, coupled with his employer's
when selecting your next car".
The cost of recharging can be temporary charging solution The manufacturer is also developing mileage allowance payments to
Mr Constable concluded: "Identify
from as little as £1 depending on exclusively to its fleet customers. automated parking that aligns the car reimburse business miles.
the electricity supplier’s tariff. ‘Charge before you buy’ has been and the chargepoint precisely.
recharging point locations, but if
developed and supplied by EDF A firm called Qualcomm, which is He opted for the BMW i3 range the daily commute is not too great
WORKPLACE RECHARGING Energy. The short-term discovery also working on the same technology, extender having driven a Toyota then integrating home and work
Numerous employers are installing solution enables customers to believes it could have production-ready Prius Hybrid for three years and recharging points into your life is
chargepoints in their company explore whether EVs fit their needs. systems on the market within two years. previously a number of diesel not onerous.
car parks in a bid to reduce both Three chargepoints are available What is clear is the expansion of company cars.
their own and their employees’ for customers to lease for between plug-in vehicle choice, coupled with
"My experience is that the chief
carbon footprint. one and three months. the progress of technology, means "After I took delivery of the Prius I reservations around vehicle range
There are many suppliers of Enlightened businesses company car and van drivers will resolved never to have a diesel car and recharging point availability
charging equipment and electric car considering installing chargepoints increasingly find a model to meet their again, and now I will never have a can be dispelled. Living with a
manufacturers typically have their at work should remember that there business and lifestyle requirements. In car that is not electric," pledged Mr plug-in electric car is much easier
own partnership with a provider. is no taxable benefit if the employer turn that will help businesses to cut fleet Constable. "The major success for than most people expect."
The range of charging equipment provides the facility. costs and reduce their carbon footprint.
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