FLEET GUIDE TO
PLUG-IN VEHICLES
GO ULTRA LOW FLEET GUIDE TO PLUG-IN VEHICLES
EDITORIAL TEAM Editor Ben Wicks (SMMT) Deputy Editors James Parsons
(PFPR); Ashley Martin
Design www.zedpublishing.co.uk
GO ULTRA LOW TEAM
Ben Wicks (SMMT) Poppy Welch (SMMT) Jonathan Mitchell (OLEV)
David Murphy (DfT) Victoria Judd (DfT) For media enquiries contact
James Parsons (PFPR):
[email protected]; +44(0)7725257792
GO ULTRA LOW WOULD LIKE TO THANK THE FOLLOWING PEOPLE FOR
THEIR CONTRIBUTION TO THE GUIDE:
John Pryor, Caroline Sandall (ACFO); Ian Hill (Activa Contracts); Jon Burdekin (Alphabet); David Bushnell
(Alphabet); Glen Blythe (Art of Living); Monica Guise
(Birmingham University); Andrew Garrad (Bristol 2015); Nina Skubala (Business West); Gerry Keaney (BVRLA); Dylan Setterfield (CAP Automotive); Mark Constable (EDF Energy);
Simon Cook (GE Capital UK); Rupert Pontin (Glass’s); Sam Clarke (Gnewt Cargo); Mark Jowsey (KeeResources); Chris Chandler (Lex Autolease);
John Webb (Lex Autolease); Nick Faulkner (Ogilvie Fleet); Nick Hardy (Ogilvie Fleet); Paul Jackson (TMC); David Hosking (Tusker); Mark Sinclair (Tusker); Simon Staton (Venson Automotive
Solutions); John Kendall. The information and data set out in this guide are for general information only, and though given in good faith, are given without any warranty as to their accuracy. Any views expressed in
editorial are not necessarily endorsed by Go Ultra Low. All information correct at date of publication, October 2015.
UK fleets are agents of change. Many of the innovations that have made
cars greener, safer and more efficient in recent decades were pioneered
by fleets, and today the corporate sector is spearheading the growth of
the ultra low emission vehicle (ULEV) market.
The UK is now the fastest growing market for electric vehicles in Europe.
In the first six months of 2015, more electric cars were sold here than
in the whole of 2014 - and almost two thirds of those were acquired by
fleets. More and more fleet managers are discovering that running electric
vehicles no longer requires fundamental compromise – whether it’s on
whole life costs, reliability, or popularity with drivers.
As a government, we have demonstrated our long-term commitment
to ultra low carbon motoring. We are investing £500m between 2015
and 2020 to support the plug-in vehicle grant, expand the charging
infrastructure, and boost the electric car industry.
Manufacturers have responded by expanding and improving the range
of ULEVs on the market. There are now 27 cars, from luxury cars to city
vehicles, and nine vans eligible for the Plug-in Car Grant, so fleets have
real choice.
But the challenge we face now is to accelerate sales. By 2020, we expect
ULEVs to make up to 5% of new UK car registrations. By 2040, our aim
is that all new cars sold in this country will have zero tailpipe emissions.
And our ultimate goal is to make almost every car on the road ultra low
emission by 2050.
These are ambitious targets. But we can achieve them if government,
industry and fleets continue to work in partnership through schemes like
Go Ultra Low.
I want to encourage more fleets to be bold and see the benefits that
electric cars could bring. Green fleets don’t just enjoy financial incentives
and tax breaks. They also project a positive corporate image to the
outside world. And employees love them.
So I’m delighted to recommend this guide – and I hope it will help your
fleet Go Ultra Low.
Welcome
WELCOME
From Andrew Jones MP
INTRODUCTION
An electric vehicle is for now,
not just the future
PLUG-IN
GRANT EXPLAINED
Government grant scheme
extended into 2016
WHOLE LIFE COSTS
Whole life costs,
whole lot of savings
TAX
Electric cars: the answer
to taxing questions
CHARGING
INFRASTRUCTURE
Meeting the charging challenge
FUEL COSTS
Fuel for thought
RESIDUAL VALUES
Closing the gap
SMR
Service, maintenance
and little repair
3
4
8
12
16
26
20
24
6
28
THE MANUFACTURER VIEW
Views and ideas on the future
of mobility
FLEET PLANNING
Planning for an electric future
DRIVER CASE STUDIES
Practice what you preach
LIGHT COMMERCIAL VEHICLES
Electric vans:
Good commercial sense
ACFO
Advice from the Association
of Car Fleet Operators
BVRLA
Insight from the British Vehicle
Rental and Leasing Association
LOCAL AUTHORITY
Tale of an ultra low emission city
FURTHER INFOMATION
Go Ultra Low online
32
36
38
42
43
44
46
Andrew Jones MP
Parliamentary Under Secretary of State at Department for Transport
ULEVs are available from a number of manufacturers, including Audi, BMW, Mitsubishi, Nissan, Renault, Toyota and Volkswagen. These seven have joined the Go Ultra Low campaign to encourage corporate and consumer demand of plug-in vehicles. There are three types of technology powering ULEVs, all offering different benefits to ensure companies can match fitness for purpose with business need:
C
ost management is anagenda-topping issue for operators so it makes sound commercial sense that an ever-expanding range of ultra low emission vehicles (ULEVs) – those
that emit 75g/km CO2 or less and
have a plug-in element – should be considered for operational use.
What’s more, fleets and small businesses are leading the charge for plug-in cars and vans as new vehicle registration figures have surged in 2015.
Data from Go Ultra Low reveals that plug-in car registrations accelerated rapidly over the first nine months of 2015, growing 138.5% to 20,992 units against the same period last year.
Mitsubishi leads the new
registrations charge, with 9,303 of its flagship Outlander PHEV sold since the start of 2015. Nissan follows with its all-electric LEAF racking up 4,285 registrations while the BMW i3 is the nation’s third most popular ULEV with 1,564 registrations.
Transport Minister Andrew Jones said: “Soaring demand across the
AN ELECTRIC
VEHICLE IS FOR
NOW,
NOT JUST
THE FUTURE
UK shows that more and more people view ultra low emission vehicles as the right choice for them. Plug-in cars are green, cheap to run and benefit both businesses and families. The government is investing £500 million over the next five years to help position Britain as a world leader in the technology, supporting skilled jobs and driving economic growth.”
Meanwhile, demand for plug-in vans has increased 50% in the first nine months of 2015 with registrations totalling 661 units versus 441 last year. Almost all those light commercial vehicles are being operated by fleets and small businesses.
Currently, 27 cars and nine vans – either pure electric, range-extended or plug-in hybrid vehicles – are categorised as ULEVs that meet the eligibility criteria for the government’s plug-in grant.
From city run-arounds and family hatchbacks, to 4x4s and sports cars, there is already a wide range of vehicles to meet corporate and employee demands, while the choice of vans embraces car derived, panel van and 4x4 models.
Corporate choice will continue to increase further with an additional 40 models expected to come to the market over the next three years, according to the Department for Transport.
Allied to fleet decision-makers searching for financial savings in their choices of company cars and vans is a desire to reduce their organisation’s carbon footprint as a
policy of good corporate citizenship. ULEVs deliver on both counts making sound financial and environmental sense, while the variety of vehicles available ensures that the key fleet criteria of ‘fitness for purpose’ is also met.
Poppy Welch, head of Go Ultra Low, said: “The balance of costs and benefits is unique to electric vehicles and therefore it is important that Go Ultra Low promotes the advantages of ownership and the financial savings they can deliver on operating budgets to fleet decision makers.”
Go Ultra Low exists to help motorists understand the benefits, cost savings and capabilities of the wide range of ULEVs on the market, aimed at boosting electric vehicle uptake as an alternative to petrol and diesel vehicles.
INTRODUCTION TO PLUG-IN VEHICLES
ULEV
TECHNOLOGY
EXPLAINED
Range extender vehicles: powered by a battery with an internal combustion generator on board, which charges the battery when it gets below 3%, can increase the range of the car from 100 miles up to around 180. The only model on the market that currently offers this is the BMW i3 Range Extender. Plug-in hybrid: matches
a battery for short trips of 10-35 miles with an economical petrol or diesel engine for longer journeys, giving a range of up to 700 miles. Models available include the Audi A3 Sportback e-tron, BMW i8, Mitsubishi Outlander PHEV, Toyota Prius Plug-in and Volkswagen Golf GTE. Pure electric: powered
by a battery charged from mains electricity with a single charge range typically around 100 miles. Models available include the BMW i3, Nissan LEAF, Nissan e-NV200, Renault ZOE, Renault Kangoo Van ZE, Volkswagen e-Golf and Volkswagen e-up!. DID YOU KNOW? IN THE UK,
MORE
ELECTRIC
CARS WERE
SOLD
DURING THE FIRST HALF OF 2015 THAN THE WHOLE OF 2014 100% ELECTRIC (CARS) BMW i3 Nissan e-NV200 Nissan LEAF Renault ZOE Renault Twizy Volkswagen e-Golf Volkswagen e-up! 100% ELECTRIC (VANS) Nissan e-NV200 Nissan e-NV200 Combi Renault Kangoo Van ZE PLUG-IN HYBRID CARS Audi A3 Sportback e-tronBMW i8 Mitsubishi Outlander PHEV
Toyota Prius Plug-in Volkswagen Golf GTE PLUG-IN HYBRID VANS Mitsubishi Outlander PHEV 4Work
RANGE-EXTENDED ELECTRIC VEHICLE
BMW i3
CHOICE OF CARS AND VANS CURRENTLY AVAILABLE FROM GO ULTRA
LOW MANUFACTURERS
ON TRACK
FROM CITY RUN-AROUNDS AND FAMILY HATCHBACKS, TO 4X4s AND SPORTS CARS, THERE IS ALREADY A WIDE RANGE OF VEHICLES TO MEET CORPORATE AND EMPLOYEE DEMANDS
T
he government’s current plug-in car grant scheme will continue to offer businesses and consumers 35% off the cost of a car, up to £5,000, until at least February 2016.Additionally, the plug-in van grant that offers 20% off the price of a vehicle, up to a maximum of £8,000, remains in place.
The government’s decision to continue to offer financial support for the acquisition of plug-in vehicles has been unanimously welcomed by the motor industry
PLUG-IN CAR GRANT EXPLAINED
GOVERNMENT GRANT
EXTENDED
INTO 2016
The government announced in August 2015 that it was
committed to continuing to support demand for all plug-in
cars with CO
2emissions of 75g/km or less.
funding for a greater number of ULEV buyers.
“The government is committed to supporting the growth of the ULEV market. If we are to meet ambitious targets for ULEV uptake, continued investment is
paramount.”
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, said: “With British buyers taking to ultra low emission vehicles faster than anyone else in Europe, the extension of the plug-in car grant is good news.
“The market for these vehicles remains small, however, so it is essential that government continues to provide effective incentives for their uptake - including the plug-in car grant and other measures.”
The Mitsubishi Outlander PHEV leads the market as the UK’s favourite plug-in vehicle and the company says that the
unquestionable success of the government’s programme has been fundamental to the early and rapid growth of the ULEV sector.
As a result, Mitsubishi says it is still too early to reduce or amend buyer incentives with managing director Lance Bradley commenting:
Department for Transport’ concluded
that there was “insufficient evidence to date to draw any firm conclusions about the impacts of reducing or withdrawing incentives on electric vehicle uptake, and that withdrawing incentives when an electric vehicle market is still in the early stages of developing and price differentials between electric vehicles and internal combustion engines are still significant, is highly likely to have a negative effect on this development.”
Gerry Keaney, chief executive of the British Vehicle Rental and Leasing Association, said: “It is great that the government has provided more certainty about the lifespan of this vital incentive and the lead time limit for qualifying vehicles to be delivered and registered.
Support also came from John Pryor, chairman of ACFO, the leading UK representative body for fleet decision-makers, who said: “Fleet decision-makers should assess the business benefits of the new breed of ultra low and zero emission vehicles against both the whole life cost and day-to-day operating criteria of their existing vehicles to see if there is a place for them within their transport operation.
“Finding the right use for the right vehicle is key in all fleet operations and that is no different with electric and plug-in hybrid models.
“The marketplace is changing so electric vehicles have to be a factor on fleet managers’ radar. Continuation of the plug-in-grant into 2016 helps them to determine the whole life cost position of applicable models versus current choices.”
Presently there are 27 cars and nine vans eligible for plug-in grants.
The ‘cost’ of the plug-in vehicle is the full purchase price paid for the basic vehicle - including number plates, Vehicle Excise Duty (VED) and VAT. It doesn’t include any optional extras, e.g. delivery charges or first registration fee.
and fleet industry organisations. The government had previously announced that the plug-in car grant would be reviewed once 50,000 vehicles had been sold. That milestone is expected to be reached in November 2015 as demand for plug-in vehicles continues to accelerate.
Confirmation of plug-in grant availability into 2016 is anticipated to add an extra incentive to fleets as well as private buyers who are looking to ‘go electric’ in 2015 and 2016.
“We have seen ULEVs rapidly establish a 1% share of UK sales in a period of time unprecedented in automotive terms.
“We welcome the government’s decision to continue these incentives in a way which recognises the fledgling nature of this low emissions market. Car manufacturers invest in new technologies on the basis of three to five year horizons for market introduction.”
Mitsubishi’s view has also been endorsed by a recent report compiled for the Department for Transport.
The ‘Uptake of Ultra Low
Emissions Vehicle in the UK: A Rapid Evidence Assessment for the
Further details about how the plug-in car grant will be structured beyond February next year are expected following the government Spending Review in November.
Registrations of plug-in cars accelerated rapidly over the first six months of 2015, growing 256% against the same period last year and surpassing the 2014 full-year total with six months to spare.
Transport Minister Andrew Jones said: “I’m pleased that the government is maintaining the current levels of grant, even as we move past the milestone of 50,000 vehicles.
“The UK is now the fastest growing market for electric vehicles in Europe. We will continue to invest to help make this technology affordable to everyone and to secure the UK’s position as a global leader.”
Poppy Welch, head of Go Ultra Low, said: “Continuing the plug-in car grant at current levels encourages zero-emission motoring and secures more
Market leader THE MITSUBISHI OUTLANDER PHEV IS THE UK’S FAVOURITE PLUG-IN VEHICLE. THE NISSAN E-NV200 (BOTTOM RIGHT) IS ONE OF NINE VANS ELIGIBLE FOR PLUG-IN GRANTS. DID YOU KNOW? THE MITSUBISHI OUTLANDER PHEV
IS THE
SAME
PRICE
AS ITS DIESEL EQUIVALENT, AFTER THE £5,000 GRANT HAS BEENWhole life savings
RUNNING A BMW i3 OVER FOUR YEARS/60,000 MILES WILL DELIVER A POTENTIAL SAVING OF £58 A MONTH OVER RIVAL MODELS (SEE OPPOSITE)
F
leet best practice dictates thatvehicle operating choice decisions should be based on whole life costs because they provide the best forward estimate of the real costs to an organisation, in delivering business mileage, over a replacement cycle.
Never has that been more important than in respect of ULEVs where, despite their higher P11D values, electric cars are cheaper to operate than petrol or diesel rivals.
Whole life costs reflect all the
projected, vehicle-specific costs associated with operating a vehicle over its fleet life irrespective of whether a vehicle is owned or leased (see panel).
Yet many fleet decision-makers base their vehicle selection
decisions on list price, P11D value or a headline monthly lease rate and not on whole life costs.
Chris Chandler, principal consultant at Lex Autolease, the UK’s largest vehicle leasing and fleet management company with a fleet
Hundreds and possibly thousands of businesses are potentially
wasting money because they are failing to use whole life costs
as the basis for company car selection, according to experts.
WHOLE LIFE COSTS
WHOLE LIFE COSTS,
WHOLE LOT OF SAVINGS
Finding the right operation for the right vehicle is key in all fleet operations and that is no different with ULEVs.
Mr Chandler added: “In the right circumstance, where the right vehicle is used the whole life cost can be less than their petrol or diesel equivalent.”
David Bushnell, eMobility consultant at vehicle leasing and fleet management company Alphabet, which launched
AlphaElectric in a bid to encourage corporate demand for plug-in vehicles and has more than 1,000 ULEVs on its fleet, said: “Over the past year we’ve started to see a shift in attitudes towards electric vehicles. Once considered unfashionable and expensive, they have now found their place among corporate fleets.
“Traditional barriers to adoption are being removed and electric vehicles are becoming increasingly viable options for businesses.
“Many organisations wrongly assume that electric vehicles are unaffordable, won’t provide the desired range for their business requirements, or aren’t supported by enough charging infrastructure. Yet if they took the time to look into them in more detail, they would realise that introducing models is
actually a lot less risky than first assumed. The typical working range of a pure electric vehicle on a full charge is around 75 miles, which is more than adequate for most business journeys.”
Meanwhile, GE Capital, Fleet Services’ ‘Company Van Trends’ research recently suggested an increased adoption of ULEVs over the next two years - a total of 34% of fleets said they planned to operate more electric vans.
Simon Cook, fleet LCV leader at GE Capital UK, said: “More and more fleets are taking an interest in a wide range of alternative fuels and are keen to try them out in an
operational sense to see which work for them and in which applications.”
Whole life cost figures from Lex Autolease illustrate how the higher P11D value of plug-in vehicles is
EXAMPLE
MODEL VALUEP11D COMBMPG G/KMCO2 FUEL COSTMONTHLY WHOLE LIFE COST2015/16
BMW i3 hatch 5dr auto £30,925 N/A 0 £38 £416
BMW 116d SE 5dr auto £23,205 78.5 96 £86 £455
Audi A3 2.0 TDI SE 3dr £22,160 68.9 108 £98 £467
BMW 118i SE 5dr auto £22,270 58.9 112 £113 £474
Nissan LEAF Acenta 5dr auto £28,535 N/A 0 £38 £357
Ford Focus 1.5 TDCi 120 Zetec S auto £21,515 74.3 98 £91 £405
Ford Focus 1.5 EcoBoost Zetec S 5dr £21,315 51.4 127 £130 £462
Volkswagen Golf 1.6 TDI BlueMotion 5dr £22,035 83.1 89 £82 £465
BMW i3 hatch Range Extender 5dr auto £34,075 470.8 13 £72 £555
BMW 120d Sport 5dr step auto £26,800 68.9 109 £98 £534
BMW 118i M Sport 5dr Nav £23,955 52.3 126 £127 £539
EXAMPLE ‘WHOLE LIFE COST’ DATA
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 prices at April 2015. 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
WHOLE LIFE COSTS
DEFINED
more than offset by significant fuel savings, an estimated 20-40% reduction in SMR costs and tax benefits.
SMR savings accrue because there are fewer moving or wearing parts in an electric car that will require maintenance than in petrol or diesel equivalents. Consequently, vehicle servicing costs will be lower.
The data reveals that, for example, running a BMW i3 over four
years/60,000 miles will deliver a potential saving of £58 a month over rival models (see table) or £2,784 over a four-year operating cycle. Multiply that by a fleet of just 10 cars and the savings escalate to almost £28,000 over four years.
Similarly with the Nissan LEAF Acenta the monthly savings over a Ford Focus 1.5 EcoBoost Zetec S are an impressive £105 a month. That equates to more than £5,000 over a four-year operating cycle and £50,400 on a fleet of only 10 cars.
Whole life cost data for range extender and plug-in hybrid models are more difficult to calculate because maximum savings are delivered in electric mode. The figures below assume 60% electric mode usage and a 15% weighting is attached to official MPG for real-world motoring. of more than 300,000 vehicles
including more than 2,000 ULEVs, said: “It is important that fleets look beyond the initial list price of the vehicle.
“Plug-in vehicles benefit from government grants, tax breaks and have significantly cheaper fuel costs, all of which help to reduce the total cost of ownership. In addition, these vehicles provide notable environmental benefits as they produce substantially lower CO2 emissions.” DID YOU KNOW? FLEETS CAN SAVE MORE THAN
£5,000
PER VEHICLE OVER A FOUR YEAR PERIOD BY GOING ELECTRIC Whole life costs should include: Vehicle acquisition/ depreciation or if leasing, the effective lease rental capital allowances any VAT recovery corporation tax relief the cost of borrowing money fuel employer Class 1A national insurance contributions service, maintenance and repair VED insurance Trend setting ONCE CONSIDERED UNFASHIONABLE AND EXPENSIVE, ULEVs HAVE NOW FOUND THEIR PLACE AMONG CORPORATE FLEETSWHOLE LIFE
COSTS DEFINED
Data capture and analysis is critical in identifying the potential for companies to introduce plug-in vehicles, according to Alphabet.
The vehicle leasing and fleet management company, which now brands itself as a mobility provider, claims to have introduced a ‘concrete way’ to help clients meet their individual mobility needs and achieve targets such as lower CO2 emissions or cost-savings: the Electrification Potential Analysis (EPA). The analysis, developed as part of Alphabet’s consulting approach, precisely identifies how businesses can optimally integrate electric vehicles into existing fleets.
Among the first companies to make use of the service was Interserve, one of the world’s foremost support services and construction companies.
To identify whether electric vehicles could reduce Interserve’s total cost of mobility, Alphabet tracked 24 vehicles in their fleet over a 33-day period. The usage patterns, which included drivers’ routes along with the distance, speed, acceleration, stops and parking, was measured via temporary in-vehicle trackers.
The information gathered revealed the total fleet energy consumption and CO2 emissions. Alphabet then used the data to build a precise fleet-driving profile, which served as the basis for the proposed solution.
The data reported that the vehicles covered more than 35,000 miles in various regions of the UK. For just over 88% of the time, journeys were of less than 62 miles, the range considered suitable for most battery electric vehicles, according to Alphabet. The EPA identified “remarkable cost saving potential” for Interserve, if it was to integrate electric vehicles into the fleet.
Based on the data collected, Alphabet proposed two possible solutions - basic and advanced - each of which reduced
the total cost of mobility and CO2 emissions by different amounts. The basic option, in which six electric vehicles would replace the 24 fleet vehicles, simulated cost savings of 9.2% per month and a 19.6% cut in CO2 emissions. The advanced option, in which nine electric vehicles would replace current fleet vehicles and six charging stations would be integrated, showed a total cost of mobility saving of 15.5% per month and a 27.8% cut in emissions. In the end, Interserve decided to introduce almost 20 plug-in and plug-in hybrid cars.
Jas Dhanda, fleet manager construction, Interserve, said: “We strive to keep our fleet on the cutting edge and our costs in check. The EPA provided us with an optimised and realistic proposal for achieving that. The fact that it shows ways to reduce our carbon footprint is a welcome bonus.
Carsten Kwirandt, head of marketing and business development at Alphabet International, said: “In today’s competitive environment, it’s understandable that Interserve is looking to save costs. EPA identifies realistic ways to efficiently integrate electric vehicles into fleets. It really takes into account all details a company needs to take the right decision. “Our objective is to bring comprehensive, forward-thinking eMobility to our clients in a way that’s in line with their targets, be it reducing CO2 emissions or
decreasing total cost of mobility.”
WHOLE LIFE COSTS
PROFESSIONAL FLEET EXPERTISE IS KEY TO UTILISING WHOLE LIFE COSTS
Many organisations do not employ full-time professional fleet managers, particularly in the SME sector, to manage their company car operations.
The trend for organisations to outsource fleet responsibility to a third party and leave management of the contract with perhaps the HR or finance department is highlighted by ACFO as one of the reasons why whole life costs are ignored by many companies.
A further reason is the
complexity around sourcing all the required data, but many leasing companies actively promote the use of whole life costs. Switching to whole life costs as the basis for company car choice can frequently enable employers to offer staff a more attractive car than perhaps they may have previously been entitled to have.
Utilisation of whole life costs was a major topic at a 2015 ACFO seminar where deputy chairman and fleet manager Caroline Sandall said: “The fact that many
businesses don’t use them is a symptom of lacking internal fleet management knowledge, particularly in SME fleets.
“Whole life costs should be embedded in every company, but it is not because it is not known or understood in many cases. That is why it is important that companies have a level of internal fleet expertise.”
But, she continued: “Whole life cost management offers space to be flexible and should be adapted to the needs of individual fleets.
“Businesses should consider how they can refine their current company car choice model and implement improvements.”
Underlining that data capture was critical to fleet cost management, Ms Sandall said: “Businesses cannot achieve a whole life cost management structure unless they have effective data which comes from many
sources including internally and suppliers. It is critical to capture all income and expenditure to create a baseline position.”
Mike Brazel, specialist consultant (funding and taxation), LeasePlan, added: “Many businesses struggle to capture all their costs in one place. But it is critical to measure, monitor and manage what is really happening. Whole life cost
management is a continual process of review, and using them will deliver benefits to employees and the business.
“Using whole life costs as the basis for vehicle selection is eminently doable, but there must be a desire to do it.”
Ms Sandall, who has more than 20 years' fleet management experience, continued: “Whole life costs management doesn’t have to be complicated. Businesses can take a step transition to get a
baseline and start building up data that may be required. Treat whole life costs as a menu because you can’t always start with perfection. “One of the biggest issues with whole life cost modelling is shifting costs - residual values, purchase price discounts, funding costs and interest rates and insurance, as well as supply chain changes and legislation - therefore businesses should ensure they monitor and look for change and try to predict the future.”
Ogilvie Fleet has promoted the use of Ogilvie True Cost (OTC) - its own interpretation of whole life costs incorporating all known vehicle expenditure - as the basis for company car choice lists for a number of years.
Nick Hardy, sales and marketing director of Ogilvie Fleet, said it was vital that fleet managers kept all vehicle options open and using
whole life costs was the straight-forward mechanism for doing so to easily identify the optimum choice.
For many years diesel has been the fuel of choice for fleets. But now with the ever-growing ULEV choice, Mr Hardy, who has a plug-in hybrid as his own company car, said: “Fleets should not be restrictive in their vehicle choice by self-imposed limitations. Fleet operators should be open to alternative power sources – there is no need to be fearful of new technologies.
“We are finding that an increasing number of businesses have a relatively open fleet policy and are mindful of the different engine technologies and fuel types available,” said Mr Hardy.
“Whole life costs should be embedded in every company, but it is not because it is not known or understood in many cases. That is why it is important that companies have a level of internal fleet expertise” CAROLINE SANDALL FLEET MANAGER Employee choice
AN INCREASING NUMBER OF BUSINESSES HAVE A RELATIVELY OPEN FLEET POLICY AND ARE MINDFUL OF THE DIFFERENT ENGINE TECHNOLOGIES AND FUEL TYPES AVAILABLE
CASE STUDY
INTERSERVE
EXAMPLE OF CAPITAL ALLOWANCE BENEFITS
MODEL: Nissan LEAF Visia PRICE:£22,029.17 CO2 EMISSIONS: 0g/km
WRITING DOWN ALLOWANCE:
100%
CORPORATION TAX 2015/16:
20%
TAX RELIEF: £22,029.17 x
100% x 20% = £4,405.83 Tax written down value carried forward = nil
MODEL: Vauxhall Insignia 2.0
CDTi 120 Sri VX-Line 5dr
PRICE: £22,104 CO2 EMISSIONS: 99g/km
WRITING DOWN ALLOWANCE:
18%
CORPORATION TAX 2015/16: 20%
TAX RELIEF: £22,104 x 18%
x 20% = £795.74 Tax written down value carried forward = £18,125.28
Nissan LEAF
EMISSIONS FREE, ULTRA LOW TAXES
T
he motoring tax regime isdesigned to favour the take-up of ULEVs with government grants furthering the incentives for corporate customers.
Additional funding is available to help with the purchase of vehicles and installation of recharging points, meaning there is a solid business case for introducing such cars and vans to fleet operations.
The London Congestion Charge and the Low Emission Zone ringing the capital also favour the cleanest vehicles, while many local authorities offer free parking for plug-in cars and vans – with more initiatives set to follow.
Add into the financial equation fuel costs, where along with company car benefit-in-kind (BIK) tax the biggest savings are achievable, and switching to ULEVs starts to make real sense.
In addition, with the planned 2020 introduction of an Ultra Low Emission Zone mirroring the Congestion Charge zone in the heart of the capital, regulations are increasingly driving fleets down the ULEV route.
Five low emission zones operate in England, and 15 local authorities have been allocated government funding to develop similar zones. The business case for introducing ULEVs is further supported by the requirement of companies - employing 250 or more people in the UK or with an annual turnover exceeding €50
million and a balance sheet exceeding €43 million - to complete energy audits, including fuel used by company cars and vans and privately-owned vehicles driven on business trips.
The first audit reports under the Energy Savings Opportunity Scheme (ESOS) are due later this year.
Furthermore, approximately 1,800 companies listed on the London Stock Exchange and local authorities must report their greenhouse gas emissions, which includes emissions from cars and vans ‘owned or controlled’ by organisations.
Embracing ULEVs is one way that businesses can drive down energy consumption and display their ‘green’ credentials to customers, suppliers and shareholders.
The financial savings available are backed by industry experts that have experience of driving ULEVs.
Steve Jackson, chief car editor at vehicle information Glass’s told
BusinessCar’s ‘Guide to Introducing Ultra-Low Emission Vehicles’
produced in association with Go Ultra Low: “The cost saving in terms of fuel is staggering if you switch to a ULEV. There are some cars now that, because they are plug-in, get the equivalent of 235mpg.
“The tax saving for business drivers is obvious, but there’s also the surprise saving of parking. I recently saved about £8 because I was in a plug-in car and recharging. Yes, I had to pay for the electricity, but I didn’t have to pay for a day’s parking. It’s an unexpected bonus.
Drivers should also consider what the savings and the vehicles can do for their lifestyle, according to Paul Marchment, fleet consultant at vehicle leasing and fleet management company Arval.
“As well as tax, fuel and congestion charge savings you also need to add lifestyle. When I
VAN BIK TAX CHARGE
Full BIK tax exemption status of electric vans ended in 2015/16, but there are still tax savings to be gained when compared with petrol and diesel powered models.
BIK tax on electric vans is being phased in - 20% of the rate paid by conventionally-fuelled vans in 2015/16, followed by 40% in 2016/17, 60% in 2017/18, 80% in 2018/19 and 90% in 2019/20, with rates equalised in 2020/21 when a single benefit charge applying to all vans is planned.
The van BIK tax charge in 2015/16 for petrol and diesel models is a flat rate £3,150; £630 for electric vans. Employers pay NIC on the benefit. Electric van BIK tax charge 2015/16 (20%/40%) taxpayer: £126/£252. NIC charge: £86.94. Petrol/diesel van BIK tax charge 2015/16 (20%/40%) taxpayer: £630/£1,260. NIC charge: £434.70.
Therefore, drivers will save £504/£1,008 in tax on a plug-in van. Employers will save £347.76 in NIC per plug-in vehicle, which on a fleet of just 10 vans delivers a cash saving of almost £3,500.
VEHICLE EXCISE DUTY
Presently ULEVs are exempt from paying Vehicle Excise Duty (VED) and all cars and vans that emit less
than 100g/km of CO2 are zero rated
for road tax, delivering additional cash savings to companies.
However, the VED regime for cars will change from 1st April, 2017, Chancellor of the Exchequer George Osborne announced in the 2015 Summer Budget.
Nevertheless, the changes still encourage take-up of ULEVs. Mr Osborne said: “The reformed VED system retains and strengthens the CO2-based first year rates to incentivise uptake of the very cleanest cars.”
TAX
ELECTRIC
CARS:
THE ANSWER
TO TAXING
QUESTIONS
switched to a ULEV I saved enough for my wife to go part-time and look after our child,” he said.
“Drivers need to do the sums, particularly if they’re doing higher private mileage and have to rely on petrol to get a better range, but for perk drivers it’s an obvious choice.”
SAVINGS IN COMPANY CAR BIK TAX AND CLASS 1A NATIONAL INSURANCE
Company car benefit-in-kind (BIK) tax rates are known until the end of 2019/20 - which enables businesses to plan their vehicle choice lists and calculate the financial cost to themselves and employees.
Like BIK tax, employers’ Class 1A national insurance contributions (NIC), charged at the rate of 13.8%, are linked to a car’s P11D value and CO2 emission figure. Therefore, the lower a car’s CO2 emissions the lower the NIC charge.
Table 1 (left) highlights BIK tax rates on ULEVs to 2019/20 and the rates for a car in the 100-104g/km bracket.
• For tax year 2015/16 add 3% for diesel cars up to a maximum of 37%
• From 2016/17 petrol and diesel cars are treated equally for company car tax purposes. So, comparing a zero emission BMW i3 (£30,980 on the road) with an identically priced 101 g/km Mercedes-Benz C200 BlueTEC Sport 4dr six-speed manual (£30,980), – see table 2 – reveals the tax benefits for lower (20%) and higher (40%) rate drivers and the Class 1A NIC savings for employers over five years.
Over the five-year period, company car drivers will pay a total of £3,030.65 less in BIK tax on the BMW i3 if a lower rate taxpayer and £6,061.30 if a higher rate taxpayer.
For employers, the Class 1A NIC costs and savings over the five-year period are shown in table 3.
It means that over the five-year period businesses will save themselves a total of £2,091.16 by choosing the BMW i3. On a fleet of just 10 models that equates to a saving of almost £21,000.
CO2 (g/km) % of P11D price2015/16 % of P11D price2016/17 % of P11D price2017/18 % of P11D price2018/19 % of P11D price2019/20
0-50 5 7 9 13 16 51-75 9 11 13 16 19 100-104 15 17 19 21 24 P11D value 20%/40%2015/16 20%/40%2016/17 20%/40%2017/18 20%/40%2018/19 20%/40%2019/20 i3 £30,925 £309/£618 £433/£866 £557/£1,113 £804/£1,608 £990/£1979 C200 £30,925 £1,113/£2,227 £1,051/£2,103 £1,175/£2,350 £1,298/£2,598 £1,484/£2,969 Saving £804/£1,608 £618/£1,237 £618/£1,237 £495/£990 £495/£990 P11D value 2015/16 2016/17 2017/18 2018/19 2019/20 i3 £30,925 £213 £299 £384 £555 £683 C200 £30,925 £768 £725 £811 £896 £1,024 Saving £555 £427 £427 £341 £341 TABLE 2 TABLE 1 TABLE 3 EMISSIONS (g/km) OF CO2 FIRST YEAR
RATE STANDARD RATE*
0 £0 £0
1-50 £10 £140
51-75 £25 £140
76-90 £100 £140
NEW VED SYSTEM FOR CARS REGISTERED FROM 2017
* Cars above £40,000 pay a £310 supplement for five years
CAPITAL ALLOWANCES
Capital allowances allow companies to write down the cost of purchasing cars and vans against taxable profits.
To encourage the take-up of
ULEVs, cars and vans with CO2
emissions of 75g/km or less are eligible for 100% first year capital allowances to 31 March, 2018 thereby giving companies cash flow benefits. However, in respect to zero-emission vans, this benefit is limited to businesses that do not claim the government’s Plug-in Van Grant.
In contrast, on cars with emissions of 76-130g/km and above 130g/km companies can write down 18% and 8%, respectively, of the cost of a car against their taxable profits each year, on a reducing balance basis. Business expenditure on vans (ex-VAT) that are not zero-emission qualify for tax relief as capital allowances at the rate of 18% a year on a reducing balance basis. DID YOU KNOW? OVER A FIVE YEAR-PERIOD, COMPANY CAR DRIVERS CAN SAVE THEMSELVES
£6,000
IN BIK
TAX
BY CHOOSING AN ULEVThe first year VED rate and the standard rate for ULEVs is shown below:
U
LEVs work extremely well as salary sacrifice cars. Salary sacrifice works by eligible employees ‘sacrificing’ part of their salary in exchange for a company car.Savings are generated because the employee is no longer liable for income tax on the proportion of salary they sacrifice. Instead, they are liable for BIK tax on the company car.
As BIK tax works on a sliding
scale based on the CO2 emissions
of each vehicle, ULEVs attract the very lowest tax liability of just 5%. When Tusker’s purchasing power on the vehicle, maintenance and insurance are also factored in, along with the savings on fuel, drivers can save many hundreds of pounds every year.
Due to salary sacrifice car schemes’ increasing popularity, boosted by government policy which keeps related taxes very low, manufacturers have responded with an ever-expanding range of low emission models to meet all needs and pockets; from city run-arounds and family hatchbacks, to 4x4s and sports cars.
It is no surprise then that nearly half of all cars ordered through Tusker’s SalarySacrifice4Cars scheme emit less than
100g/km CO2.
The most popular ULEV on Tusker’s fleet, accounting for over half of total orders, is the versatile Mitsubishi Outlander PHEV which appeals to drivers looking for a bigger family car.
Tusker has been at the forefront of promoting ULEVs for several years. All four executive board directors at Tusker drive ULEVs and the company has installed four chargepoints at its headquarters for employees and visitors to use. Electric cars are now available to all company car drivers at all grades and to non-car eligible staff on Tusker’s own salary sacrifice scheme.
Tusker works hard to promote the benefits of ULEVs to its customers, and has developed a dedicated microsite packed with information to educate customers on these low emission vehicles, including dispelling common myths, tools to assist in determining if it’s right for an
individual, cost and CO2
comparison tools, an educational video, a frequently asked questions section and charging information.
Employers also have a role to play. Installing chargepoints in the office car park is essential to encourage employees to adopt ULEVs and drive down the company’s carbon footprint.
Choosing the right ULEV for each individual driver is critical to their success. Different types of low emission vehicles work best under different sets of circumstances. Drivers do need to do some research when first looking into these vehicles and fully understand their journey profile.
An electric car with range extender works well for someone with a fairly long but predictable commute, while anyone mostly doing short, local journeys will find a fully electric car is ideal. The combination of the petrol hybrid
ULEVs AS
A
SALARY
SACRIFICE CAR
SCHEME OPTION
Salary sacrifice car schemes are growing in
popularity for employees with no entitlement
to a company car or a cash alternative. What’s
more, some employers are introducing the salary
sacrifice option in place of company car schemes.
David Hosking, chief executive of Tusker, currently
managing 200 schemes, explains why ULEVs are
a particularly attractive salary sacrifice option.
“Choosing
the right ULEV
for each
individual
driver is
critical to
their success.
” DAVID HOSKING TUSKERelectric vehicle is often a good compromise as it offers electric driving for short journeys with the compromise of a petrol engine to reduce perceived range anxiety for longer journeys.
If a ULEV does not work for a particular company car driver, because they typically drive a very high daily mileage with little opportunity for recharging, drivers could look into obtaining a ULEV as a second car on salary sacrifice. Conversely, for a family requiring a conventional car at weekends, a ULEV may be ideal just as a car for the regular daily commute.
With salary sacrifice, there are no tax limits on the number of cars employees can have, therefore salary sacrifice is an ideal
opportunity for someone to drive a ULEV as their first or second car. The scheme gives drivers flexibility to adapt their car to their journey profile.
Recharging
ULEVs WORK EXTREMELY WELL AS SALARY SACRIFICE CARS
Introducing five Mitsubishi Outlander PHEVs to The Art of Living Group’s company car fleet is paying financial dividends for the employees as well as the organisation.
Drivers are each saving
thousands of pounds in company car BIK tax and the company calculates that it has cut its fuel bill by as much as 50%. The successful interior fittings company is also making savings in Class 1A National Insurance contributions and, having purchased the plug-in cars, is benefiting from 100% capital allowances. Two of the cars are also London Congestion Charge registered so are exempted from the daily charge when driven into the zone. Glen Blythe, a director of the family-owned, Camberley-based company, said: “Our attention was drawn to an advert in a motoring magazine and I investigated. From both a financial and environment perspective it was a no-brainer.” The company traded in five diesel SUVs for the Outlanders a year ago and Mr Blythe, explaining that the tax saving was the equivalent of a pay rise, said: “I’m now paying £14 a week in BIK tax and I was paying £50 a week. That’s brilliant.”
The financial savings are even greater for Mr Blythe’s father, Clive, managing director, who has seen his annual BIK tax reduce from around £10,000 to below £1,000. Mr Blythe’s brothers and fellow directors, Dean and Craig, are also making significant savings alongside warehouse manager Phil Johnson.
Three of the men have had chargepoints installed at home - the property configuration means the other two employees have not
- and two points have been installed at the company’s headquarters, one of which is available free of charge to customers. Employees are also equipped with an Ecotricity Electric Highway swipe card to allow them to recharge at other locations. Mr Blythe calculates he achieves around 30 miles on electricity when the battery is fully charged and more than 600 miles on a tank of petrol.
He explained: “We’re very eco-minded and always looking for ways to reduce our carbon footprint. I live five miles from the office and charge the cars every two days. If I have a longer journey the petrol engine kicks in. From filling up every week I’m now refuelling every five or six weeks. “We run the cars as frequently as possible on electricity as that is where we gain the maximum financial benefits in terms of fuel cost savings.”
The Art of Living Group operates a 15-strong fleet of cars and vans and Mr Blythe anticipates introducing more ULEVs to the fleet in the future.
He concluded: “The cars will more than pay for themselves over three years saving the business and drivers thousands of pounds in tax and fuel costs. Other businesses should go down this route. I firmly believe ULEVs will increase in popularity as more business take advantage of the cost savings; you cannot ignore them.”
CASE STUDY
THE ART OF LIVING GROUP
TAX
DID YOU KNOW? INTERIOR FITTINGS EXPERTS ART OF LIVING HASCUT ITS
FUEL BILL
IN HALF
SINCE INTRODUCING FIVE MITSUBISHI OUTLANDER PHEVS TO ITS 15-STRONG FLEETT
he national network of vehicle recharging points is growing rapidly to the extent that the number of publicly accessible points will soon overtake the number of fuel stations in the UK.Add in to the mix the number of workplace and home recharging points and there are already thousands more locations where vehicles can be ‘plugged in’ than there are forecourts, of which there are almost 8,500.
Recent analysis by Go Ultra Low confirms that motorists no longer
battery will be recharged. Most networks offer a mix of ‘rapid’ (43kW-50kW), ‘fast’ (7kW-22kW) and ‘standard’ (up to 3kW) charging options:
• Rapid - will get a battery from flat to 80% charged in less than 30 minutes. They are generally installed at motorway service stations enabling 100% electric vehicles to travel across the country, as well as retail outlets and other locations.
• Fast - can fill up a battery in two to four hours and can be installed in public locations.
• Standard - generally what would
be used at work and home and also in car parks and other ‘destination’ locations like supermarkets and cinemas. Usually takes more than eight hours to charge a battery fully, but suitable for a top up charge. Charging involves attaching an electric cable between the car and the socket. Standard charging uses the universal three-pin plug. Most plug-in vehicles on sale today use J1772 or Type 2 connectors for ‘fast charging’, with different options available for ‘rapid charging’.
The vast majority of residential, business and public chargepoints available today are fast-chargers. They use AC current and take 3–4 hours.
Customers are advised to talk to a chargepoint supplier about the differences, as the configuration of the chargepoint required will depend on the electric vehicle chosen.
PUBLIC RECHARGING POINTS There are already more than 9,000 publicly accessible chargepoints across the UK - many provided by government investment and others by private organisations.
On a daily basis, more
chargepoints are opening in public car parks, shopping centres, railway stations, hospitals and other locations with the government having pledged £38 million to further expand the UK’s recharging infrastructure.
CHARGING INFRASTRUCTURE
MEETING THE
CHARGING
CHALLENGE
have to rely on the conventional petrol or diesel fuel pump. They found that more than 90% of electric vehicle recharging takes place at home, according to data from leading infrastructure provider Chargemaster.
Concern around the accessibility of the UK’s recharging infrastructure is frequently cited by drivers in surveys as one of their key issues in electric vehicle decision-making.
But, the reality suggests that such concerns are misplaced. The average UK commute is less than 10 miles and the majority of plug-in car and van drivers are able to charge their vehicles entirely at home or work, only occasionally using public chargepoints as a back-up or additional top-up for longer journeys.
As well as only commuting short distances, more than a third of UK motorists never travel more than 80 miles in a single trip, comfortably within the 100-mile range of most pure electric vehicles. For those who regularly need to travel further or don’t have a driveway for home-charging, some plug-in hybrids can travel around 700 miles
without needing to refuel. Furthermore, motorists driving beyond their vehicle’s range can make use of the more than 9,000 public chargepoints nationwide - a network that is set to grow significantly.
Poppy Welch, head of Go Ultra Low, suggests that fleet decision-makers and company car and van drivers should consider updating their approach to plug-in vehicles.
She said: “The reasoning is simple - drivers do not have to go out of their way, regularly spending time at petrol stations, when it is easy to ‘refuel’ from the comfort of their own home, simply by plugging in an electric vehicle.
“Electric vehicle sceptics sometimes question the usability of the UK’s roadside charging infrastructure, but this data indicates that it is an important, but not critical, facility for most electric vehicle owners.” RECHARGING YOUR BATTERY Chargepoints are categorised by the power they produce. It’s measured in kilowatts (kW), and the higher the number, the faster a vehicle’s
The investment includes the installation of 500 rapid chargers in key locations, such as motorway service stations, by the end of 2015 giving the UK the best network in Europe.
Chargemaster is the largest operator of electric vehicle chargepoints in the UK and earlier this year announced a major increase in its POLAR chargepoint network that will take its network to around 7,000 locations.
David Martell, chief executive of Chargemaster, said: “Chargemaster is committed to making electric vehicles a viable option to people across the UK. By growing our network nationwide, but also focusing on traditionally poor areas of service, we are confident we will make a marked difference for electric vehicle owners wanting to charge on the move.”
Chargepoints funded by the government operate on a pay-as-you-go basis or, in some cases, are free to use. Other chargepoints are typically operated by membership schemes with access to the network usually at low cost or free.
A chargepoint location map is available on goultralow.com.
HOME RECHARGING
Government incentives mean a dedicated home recharging point can be installed at little or no cost. The government has pledged a further £15 million to 2020 to continue the Electric Vehicle Homecharge Scheme giving ULEV drivers a 75% grant of up to £700 towards installation.
Some vehicle manufacturers, energy companies and chargepoint suppliers will also pay the additional 25%, making the entire installation process absolutely free.
Typically, it is the responsibility of employees to arrange fitment of the recharging unit and pay any
outstanding cost following deduction of the grant. Employers generally take the view that employees will achieve BIK tax and fuel cost savings as a consequence of choosing a ULEV so they should not be put off by any recharging unit cost.
Additionally, asking an employee to fund any further recharging unit cost indicates a commitment from them to support a corporate move to carbon footprint reduction and also safeguards employers from ‘losing’ out in the event of an employee moving.
However, other employers could decide to remove any barrier to employees choosing a ULEV and opt to fund any additional recharging unit cost. Such a move would incur a BIK tax charge at an employee’s marginal rate.
Ideally, the recharging point should be installed in a garage or on a driveway. A range of home-charging hardware, both floor and wall-mounted, is available to cater for multiple users and vehicle types.
However, if neither a garage or driveway option is available, a similar grant is offered to local authorities to have residential on-street chargepoints installed.
For safe and faster home charging it is recommended that a weather proof, tethered wallbox is installed on a dedicated electrical circuit, and an earth stake is fitted if necessary.
The cost of recharging can be from as little as £1 depending on the electricity supplier’s tariff.
Finding somewhere to charge your
electric car has never been easier,
thanks to home and workplace
recharging, and a rapidly growing
network of public chargepoints.
Going places MOTORISTS DRIVING BEYOND THEIR VEHICLE’S RANGE CAN MAKE USE OF THE MORE THAN 9,000 PUBLIC CHARGEPOINTS DID YOU KNOW? MORE THAN A THIRD OF UK MOTORISTS
NEVER
TRAVEL
MORE
THAN
80 MILES
IN A SINGLE TRIP, COMFORTABLY WITHIN THE 100-MILE RANGE OF MOST PURE ELECTRIC VEHICLESWORKPLACE RECHARGING Numerous employers are installing chargepoints in their company car parks in a bid to reduce both their own and their employees’ carbon footprint.
There are many suppliers of charging equipment and electric vehicle manufacturers typically have their own partnership with a provider. A list of some suppliers is available at www.zap-map.com/ charge-points/charging-work/
The range of charging equipment
CHARGING INFRASTRUCTURE
T
he government company is tostart private road trials later this year. The trials are the first of their kind and will test how the technology would work safely and effectively on country’s major roads, allowing ULEV drivers to travel without needing to stop and charge a vehicle’s battery.
The trials follow the completion of a feasibility study commissioned by Highways England, the new government company charged with
to families and businesses.”
Highways England chief highways engineer Mike Wilson said: “Vehicle technologies are advancing at an ever increasing pace and we’re committed to supporting the growth of ULEVs on England’s motorways and major A roads. “The off road trials of wireless power technology will help to create a more sustainable road network for England and open up new opportunities for businesses that transport goods across the country.”
The trials will involve fitting vehicles with wireless technology and testing the equipment, installed underneath the road, to replicate motorway conditions.
The trials are expected to last for approximately 18 months and, subject to the results, could be followed by on road trials.
As well as investigating the potential to install technology to
wirelessly power ULEVs, Highways England is also committed in the longer-term to installing plug-in chargepoints every 40 miles on the motorway network.
Nissan is working on a wireless system with a company called Plugless that passes power to vehicles when they’re parked in the right place. The manufacturer is also developing automated parking that aligns the car and the chargepoint precisely.
A firm called Qualcomm, which is also working on the same technology, believes it could have production-ready systems on the market within two years.
What is clear is the expansion of plug-in vehicle choice, coupled with the progress of technology, means company car and van drivers will increasingly find a model to meet their business and lifestyle requirements. In turn that will help corporates to cut their fleet costs and reduce their carbon footprint.
Wireless technology that will charge
ULEVs on the move enabling them to
travel long distances is to be trialled
by Highways England.
available is vast and includes single and dual charging boxes allowing one or two vehicles to be plugged-in simultaneously as well as freestanding chargers.
Chargemaster is, for example, currently offering customers a 7kW ‘fast charger’ for £995 (+VAT) and a lease option from £45 a month (+ VAT), while British Gas has a range of recharging solutions available from an indicative £1,500.
Meanwhile, Alphabet has launched a temporary charging solution exclusively to its fleet customers. ‘Charge before you buy’ has been developed and supplied by EDF Energy. The short-term discovery solution enables customers to explore whether electric vehicles fit their needs. Three charge points are available for customers to lease for between one and three months.
Enlightened businesses
considering installing chargepoints at work should remember that there is no taxable benefit if the employer provides the facility.
operating England's motorways and major A-roads, into ‘dynamic wireless power transfer’ technologies.
Transport Minister Andrew Jones said: “The potential to recharge low emission vehicles on the move offers exciting possibilities. As this study shows, we continue to explore options on how to improve journeys and make low-emission vehicles accessible
CHARGE
ON
THE MOVE
Selecting a BMW i3 range extender as his new car, Mark Constable estimated that 75% of mileage would be electric and 25% petrol power.
Reality has actually proved very different. Mr Constable, who receives a cash allowance in lieu of a company car, has clocked up more than 6,250 miles and only 452 miles have utilised the petrol engine.
It means around 93% of mileage, including a twice-weekly 130-mile round trip commute, during which the car is recharged in his employer’s car park, has so far been on electric power at a cost to date of less than £90.
What’s more, Mr Constable points out that driving the BMW i3 range extender is actually more
convenient and time-saving than a petrol or diesel car as he’s not having to stop at a forecourt to refuel once a week.
His car is subject to a four-year/60,000-mile lease agreement with two-thirds of journeys estimated to be business miles. Whether using workplace or public recharging points or one at home, Mr Constable says ULEV motoring delivers financial benefits.
He cites the price of electricity compared with the price of petrol or diesel, coupled with his employer’s mileage allowance payments to reimburse business miles. He opted for the BMW i3 range extender having driven a Toyota Prius Plug-in for three years and previously a number of diesel company cars.
“After I took delivery of the Prius I resolved never to have a diesel car again, and now I will never have a car that is not electric,” pledged Mr Constable. “The major success for cars like the
BMW i3 range extender is how many electric miles drivers clock up out of their total mileage.” The BMW i3’s electric range almost exactly matches Mr Constable’s commute one-way, and supported by its two-cylinder 647cc petrol engine it can travel up to 180 miles, for longer business journeys.
Mr Constable, senior product manager at EDF Energy, chose the car because he: “wanted to reduce my own carbon footprint, and contribute to improving my local environment”.
Key behavioural lessons that Mr Constable has learned in driving an electric car daily is to “pre-condition” the vehicle before commencing a journey. “At home on colder mornings I demist the car and warm it up while it is plugged in so as not to use battery charge, and the same when leaving work in the evenings. Additionally, rather than using the battery to heat ‘space’ in the car I switch on the heated driver’s seat which uses less energy.”
Nevertheless, Mr Constable uses the car’s navigation suite and his iPod for music during journeys, pointing out: “I don’t make any compromises.”
Finally, his message to fellow drivers is “do your homework when selecting your next car”. Mr Constable concluded: “Identify recharging point locations, but if the daily commute is not too great then integrating home and work recharging points into your life is not onerous.
“My experience is that the chief reservations around vehicle range and recharging point availability can be dispelled. Living with a plug-in electric car is much easier than most people expect.”
He’s electric 93% OF MARK CONSTABLE’S 6,250 MILES IN HIS BMW i3 RANGE EXTENDER HAVE BEEN ON ELECTRIC POWER, COSTING ONLY £90
“The
potential to
recharge low
emission
vehicles on
the move
offers
exciting
possibilities”
ANDREW JONES TRANSPORT MINISTERCASE STUDY
FUEL COSTS
FUEL
FOR THOUGHT
F
uel savings are one of themany benefits of running ULEVs, with the Go Ultra Low campaign suggesting that costs for a pure electric vehicle are potentially 80% less than for a conventional vehicle. Employees paying for fuel used privately could also make significant financial savings.
That’s why it is important that fleets use whole life cost figures as the basis for their company car decision-making as they include fuel costs as well as all other operating costs.
The Department for Transport calculates that electric vehicle
running costs are as low as just 2p a mile and the Energy Saving Trust suggests such vehicles cost around £2-£3 to fully charge, for a typical range of 100 miles. An equivalent petrol or diesel car costs £12-£18 to drive 100 miles – 600% more on a mile for mile basis – thus ULEVs deliver major fuel cost savings.
Research recently published by Go Ultra Low suggested that collectively British motorists were missing out on savings of almost £24.5 billion annually by not taking advantage of ultra low emission motoring.
With the average annual mileage of a household car being 7,900
Fuel is typically the second biggest vehicle-related cost after
vehicle acquisition/depreciation potentially accounting for
25%-30% of fleet expenditure. Therefore, with corporate
budgets under the microscope, reducing the cost of running
business vehicles makes absolute financial sense.
UK average fuel prices: petrol 111.15p a litre and diesel 110.41p a litre. MPG: combined fuel cycle
Fuel economy RENAULT ZOE DELIVERS A POTENTIAL ANNUAL SAVING OF MORE THAN £530
MODEL MPG FUEL PRICE FUEL COST
Renault ZOE N/A 2p per mile £200.00
Peugeot 1.0 Access 3dr 68.9 111.15 £732.94
Toyota Prius Plug-in Hybrid 78.5 111.15 £643.31
Ford Mondeo 2.0T EcoBoost 160 48.7 111.15 £1,036.96
Honda Accord 2.2 i-DTEC 150 53.3 110.41 £941.83
DID YOU KNOW? RUNNING AN ULEV CAN
COST AS
LITTLE AS
2P PER
MILE,
COMPARED TO 12P FOR A CONVENTIONAL CARsaving of more than £530 versus a petrol engine supermini over 12 months/10,000 miles. Multiply that across an electric car fleet replacement cycle of four years/40,000 and the fuel saving rockets to more than £2,100 on
just one vehicle.
Similarly, comparing the fuel economy of the Toyota Prius Plug-in with conventionally powered petrol and diesel models and there are significant savings: almost £400 versus the petrol rival and almost £300 versus the diesel. Multiply that across a typical fleet operating cycle of four
years/80,000 miles and it translates into savings of almost £3,150 and £2,400 respectively per vehicle.
Therefore, as experts highlight and the figures prove, a higher on-the-road price for a plug-in vehicle can be more than offset by fuel savings.
miles in 2014, according to data from the Department for Transport’s Annual Travel Survey, the difference in annual spend between the cost of a petrol or diesel car, around 12p per mile (£900), and a ULEV, 2p per mile (£150), is a massive £750. Multiplied by the 29.6 million cars on the nation’s roads, according to latest department vehicle licensing statistics and the saving is a colossal nearly £24.4 billion. The table (right) highlights potential fuel costs over 10,000 miles.
The data reveals that the Renault ZOE supermini delivers a potential
