Agenda item

A report updating Members on the proposal to introduce a tariff on the Greater Manchester Electric Vehicle (GMEV) charging network from early 2020.

Simon Warburton, Transport Strategy Director for TfGM introduced a report updating Members on the proposal to introduce a tariff on the Greater Manchester Electric Vehicle (GMEV) charging network from early 2020.

The Greater Manchester Taxi Trade Coalition circulated a letter to members of the Committee that set out their concerns on proposals to introduce a tariff on the Greater Manchester Electric Vehicle (GMEV) network from early 2020.  

Representatives from the sector were present at the meeting to listen to discussions around issues raised. 

GMEV was established in 2012 and was grant funded by Central Government.  The scheme was managed by Transport for Greater Manchester (TfGM) and subsequently rolled out and managed through a contract with a provider.  Current arrangements required customers to either register for a membership card for an annual fee of £20 that was payable to a third party who operated the network, or free use of a mobile app.   Since the installation of the network, TfGM had not charged customers to charge their vehicles. 

High growth in GMEV usage had continued since 2016 and it was anticipated that this would continue to grow over the next few years.   The wider pressures on Levy funded transport budget and the increased use of the infrastructure meant that it was financially unsustainable to continue to provide this service free of charge.

The introduction of an Electric Vehicle charging tariff would assist with securing a long- term revenue stream to assist in funding the costs associated with a publically owned EV charging infrastructure in GM.  Over the past year, an extensive consultation exercise had been undertaken on the re-let of the contract and the expansion of the existing GMEV network.

With reference to the concerns set out by representatives from the Greater Manchester Taxi Trade Coalition, it was stressed that it remained TfGM’s intention to put in place a membership model for the GMEV system that would be attractive to commercial users.  This model had not yet been designed but it was envisaged that this would allow regular commercial users to benefit from a degree of tariff relief.   It was hoped that by November 2019, GMCA would have been closer to a finalised position on the GM Clean Air Plan.   As of today, no confirmation on funding had been received, however, it was envisaged that grant funding would be available to support the shift towards broader vehicle change. 

Members expressed a variety of concerns regarding the introduction of a tariff on the Greater Manchester Electric Vehicle (GMEV) charging network from early 2020.

Members queried the market research undertaken to develop the tariff structure, which they felt only incorporated consultation with a very small percentage of electric vehicle owners.  It was clarified that market research for both tariffing and service had included a cross section of the public.  This had deliberately included non- EV owners as they were the future target market for the GM Clean Air plan.    In addition, other supporting information from existing user data had been included. 

Members also expressed concern at the level of over-stay charges that were not felt to be comparable with other networks. It was clarified that this was designed as a deterrent to vehicles preventing private hire cars from using this facility.  TfGM offered to consult further with the contract partner and give further advice to the GMCA on overstay charges.

With regard to queries around overall tariffs costs being high compared to national averages, it was explained that these examples often included the requirement of an additional pre-membership payment that offset this tariff.

Members raised concerns that the introduction of charging tariffs could be detrimental to the growing of the Electric Vehicle market, which currently had not grown at the desired rate.  The costs of buying an electric vehicle were highlighted as being comparably high, with current associated running costs being relatively lower.  This financial incentive would be removed should proposals to introduce charges be agreed.   It was explained that the cost to maintain the current free-charge model would be an escalating cost within TfGM and to Local Authority budgets. The proposals put before the Committee attempted to achieve a balance between the current offer and maintaining budgets.

Members reiterated comments made by the Taxi community that only two of the three rapid charging points were working.  It was clarified that the first generation technology available at that time (2011/12) did not offer rapid charging and was now difficult and expensive to repair and maintain.  A new contract would include an upgrade of existing chargers, improve the reliability of the network and incorporate better maintenance and upgraded charging points.

Members expressed a concern over the availability of domestic charging points.  It was reported that the number of domestic properties with charging points were increasing, and represented the best solution to fueling these vehicles.  It was stated that 40% of homes in GM lack driveways, and that TfGM were assisting the district councils with various offers of street-side charging points. Local Authorities were also looking at the role of planning decisions to encourage introduction of charge points.

Members requested that along with concerns raised by this Committee, that the question and answer sheet response issued by TfGM addressing the concerns of the GMTTC in their letter to Members be also submitted to the Combined Authority.

RESOLVED /-

1. That based on the information set out in the report, namely, the lack of clarification from central government on funding for the GM Clean Air Plan and the incomplete membership model, the Committee cannot fully support the introduction of Electric Vehicle charges in early 2020 until both the above were agreed and in place. 
2. That the views of the Committee be reported to the GMCA when it considers the proposals.