UK government launches competition probe into EV motorway recharging

The UK Competition and Markets Authority has launched an investigation into potential monopoly concerns in electric vehicle charging infrastructure, as it warns that more needs to be done in the sector ahead of a ban on the sale of new petrol and diesel cars by 2030 and to meet 2050 net-zero CO2 emissions goals.

The CMA competition law probe focuses on long-term exclusive arrangements between charge point provider the Electric Highway, owned by Gridserve, and three motorway service station operators, Moto, Roadchef and Extra, it said in a statement July 23.

The CMA said the Electric Highway provides 80% of all charge points at motorway service stations, excluding Tesla charge points, which are specific to Tesla vehicles. It is investigating long-term exclusive arrangements between the parties, which last 10-15 years and cover around two thirds of motorway service stations, it said.

"The CMA is concerned that these arrangements make it difficult for other operators to provide competing charge points at motorway service stations," the statement said.

"This could result in drivers losing out on the benefits of competition such as greater provision, more choice, competitive prices and reliable, high-quality charge points."

In response, Gridserve said in a statement: "Our focus is to find a path forward that addresses the concerns raised by the CMA, enabling us to retain momentum and continue to swiftly deliver the net zero charging infrastructure plans and investment we have worked so hard to put in place, that support the successful uptake and transition to electric vehicles, in-line with the government's clearly stated objectives."

It added that in under two months since it acquired the Electric Highway network from Ecotricity, it had replaced chargers in over 70 locations with new technology and contactless payment while retaining "highly competitive prices."

The CMA said the UK has around 25,000 charge points, with forecasts suggesting more than 10 times this number will be needed by 2030.

The distribution of charging points was a "postcode lottery," CMA said, with total public charge points per head in Yorkshire and the Humber a quarter of those in London.

"There needs to be action now to address the postcode lottery in electric vehicle charging as we approach the ban on sales of new petrol and diesel cars by 2030," CMA Chief Executive Andrea Coscelli said.

The CMA also gave a series of recommendations to ensure that a national network of EV charging points is in place ahead of the government's announced ban on the sale of new petrol and diesel cars in 2030.

It said the government should attach conditions to its GBP950 million ($1.3 billion) rapid charging fund for grid upgrades at motorway service stations to open up competition.

It also recommended that the government sets out a national strategy to 2030 to roll out EV charging, that energy regulators ensure it is quicker and cheaper to connect new charge points, and that the government supports local authorities to accelerate on-street charging.

In addition, the government should task a public body with monitoring the sector, the CMA said.