Policy campaign highlights – March 2023

ENERGY SUPPLY FOR ELECTRIC VEHICLES (EVS)

Logistics UK has been engaging with Ofgem about the challenges facing fleet operators seeking to electrify their vehicle fleets. The regulator has now recognised the need for fleet operators to be able to ensure adequate electricity supply at depots for future electric fleet needs.

Ofgem had a concern about speculative energy capacity increase applications, for example from land developers seeking an uplift in land values, but it has accepted that vehicle operators will need to introduce EVs into their fleets in phases rather than convert their whole fleet at the same time. This will help them understand the new technology and how it will work with their operations.

Ofgem will want to avoid unnecessary costs from installing new applications for each phase, as well as potential disruptions from roadworks connected to repeated energy increases. Understanding an operator’s timeframe for its fleet electrification plans will help Distribution Network Operators (DNOs) manage their resources and capacity in the run up to the industry-wide phase out dates for new fossil fuel vehicles which start in 2030.         

Logistics UK continues to highlight other challenges around electricity supply upgrades, which include calls to government for a fair and equitable approach for funding electricity connections to enable the expansion of depot charging for EVs, including through the tax system and the plug-in grant being available to fund connections and charging infrastructure. The business group also wants to see greater transparency of available grid capacity and a common service agreement amongst DNOs for connections.  

LOGISTICS UK ENGAGEMENT WITH THE NATIONAL INFRASTRUCTURE COMMISSION (NIC)

As part of Logistics UK’s campaign for an effective and integrated national freight network, members met with Sir John Armitt, Chair of NIC, to share their views and concerns regarding UK infrastructure and its capacity to support logistics in both the short and long term.

This meeting came at a hugely important time as NIC develops its second national infrastructure plan, which aims to identify and address long-term needs across infrastructure such as road, rail and energy.

As an important stakeholder of NIC, the meeting was a good opportunity to build a relationship for future collaboration and Logistics UK was able to put across the voice of its members on infrastructure issues.

Logistics UK focused the discussion on the need for the UK’s infrastructure to be supported and developed to enable growth and innovation in the logistics sector. Too often, infrastructure issues are considered in isolation, when freight requires a holistic approach to connect key logistics hubs, major conurbations and, increasingly, low-carbon fuelling requirements.

Logistics UK will continue to engage with NIC and government more broadly to convey these messages and ensure that long-term infrastructure strategies recognise the critical importance of freight to the entire economy.

*www.logistics.org.uk/campaigns

Published On: 16/03/2023 16:00:48

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