UK Government Subsidies for Retrofitting Would Accelerate Journey to Decarbonisation

When the Government announced in September 2023 that it was going to delay banning the sale of new petrol and diesel cars and vans for five years to 2035, it was met with mixed feelings in the Fleet community. Whilst billed as a U-turn on its climate commitments by the pro-environment lobby, it brings the UK out of line with the EU’s & OEM’s plans. Industry Fleet commentators suggested that while there was relief in some quarters and some might be pleased about the delay, the majority of vehicle fleet operators would be disappointed at the decision. 

Of fleet operators who were considering new vehicles, more than half (51%) were concerned that the lack of available range with new electric vans would negatively impact operations, and two out of five (40%) said that electric vans were simply too expensive.

Paul Hollick, chair of the Association of Fleet Professionals (AFP) said that the Government should provide more support and ‘not move the goalposts.’  While Mr Hollick acknowledged that ‘serious operational issues’ needed to be tackled, especially when it came to electric vans, the overwhelming feeling within his membership was probably one of ‘irritation’. 

What is interesting about the Prime Minister’s bombshell is the consequences it has had on Fleet Managers looking to transition to an electric fleet. When BEDEO sought the views of 200 named operators of major fleets in the UK and France in early September to see what was preventing them from making the switch, the original deadline was quoted as a contributing factor. Two out of five (40%) said that 2030 ‘was still a long way off’, meaning some would understandably use this as a reason to kick the decision down the road. Given the research was conducted before Mr Sunak’s announcement, that road has suddenly become much longer!

Delay could lead to unintended consequences. Many of the European OEMs are proceeding with the original plan in line with the rest of the European Union and this could put UK customers at risk of being deprioritised for production allocation as we get closer to the deadline. 

This is not scaremongering for there is precedent; it is precisely what happened when the Department for Transport delayed the adoption of EU6 Step E emissions standards subsequently launching a consultation Updating GB Type Approval for Road Vehicles which was published in October this year. While the EU stayed firm on the deadline, insisting all Step D vehicles be registered by the end of 2022, the unintended consequences of the DFT decision were that some UK fleet customers who had ordered step d vehicles saw their builds pushed back by OEMs.  This was to prioritise European orders to ensure these vehicles met the EU deadline leading to delivery delays of many months for some UK fleets, even in some cases having their step D orders cancelled only to be faced with having to re-order step E vehicles at a higher price.  

The lack of urgency to make a change and policy delays are not of course the only reasons. Of fleet operators who were considering new vehicles, more than half (51%) were concerned that the lack of available range with new electric vans would negatively impact operations, and two out of five (40%) said that electric vans were simply too expensive. A similar number (35%) said that even if they were inclined to buy new, the product range was currently too limited. 

This is precisely where retrofitting can fit in, in giving businesses a cost-effective solution that accelerates their journey towards decarbonisation without having to bear all the cost. BEDEO recently launched the RE-100 – an advanced retrofit solution which fits to existing diesel vans to make them both electric (first) and/or diesel at the touch of a button. 

Widely popular and financially supported by public authorities in France but not in the UK, retrofitting adds an electric powertrain to the existing diesel without replacing it, adding a further 70+ miles of electric driving to its range (anything up to 600 miles+) and without compromising load space. It overcomes, in a stroke, a Fleet Manager’s principal barriers to ‘going electric’. It gives them an immediate opportunity to decarbonise, without the full cost of having to buy new electric vans while their existing diesel vans still have plenty of life left in them. 

BEDEO’s RE-100 adds an electric drivetrain to an existing diesel van by way of an in-wheel motor and battery system, addresses fleet managers’ current concerns regarding range, affordability and sustainability, and doesn’t mean replacing a vehicle with a typical 10 – 15-year lifespan. To that end we need Government action. 

BEDEO's RE-100 adds an electric drivetrain to an existing diesel van by way of an in-wheel motor and battery system, addresses fleet managers’ current concerns regarding range, affordability and sustainability.

BEDEO research shows that fleet managers might be more inclined to consider a retrofit solution if there was greater awareness of the solution, and that’s where Government can play its part through incentives: more than half (54%) of respondents had little or even no knowledge of retrofitting, despite the huge benefits it can bring. Awareness levels are much higher in France (65%), where the French Government offers a €9,000 retrofit subsidy; no such subsidy is available in the UK, and that is something that needs to change.

Reducing Harmful Emissions from People Transport and Improving the Customer Experience

Minibuses drive where people are. They are a crucial part of some people’s lives and are especially important for those who may have accessibility needs. They pick people up from populated areas and drop them in populated areas, with all of the associated convenience, but also for combustion engine vehicles, the associated emissions. In the The Netherlands the government has set an ambitious target to transition to zero-emission mobility by 2050.

In addition, an agreement made in April 2022 states all light commercial vehicles in the major municipalities of Amsterdam, Rotterdam, The Hague Eidhoven and Tilburg are required to be emissions-free by 2025, with the rest of the country following by 2030[1].

Willemsen de Koning (WdK) operate a fleet of minibuses providing accessible transport. BEDEO have been working with them to electrify their fleet.

 

Maximising passenger space, with minimum impact on payload

WdK minibuses needed space for passengers and to be wheelchair-accessible, whilst maintaining the maximum payload of the vehicle. BEDEO vehicles are lighter than many competitors which enables more passenger space and the ability to accommodate mobility aids better than other similar electric vehicles.

In addition to the essential space and weight benefits, electrifying their fleet with BEDEO vehicles enabled WdK a cheaper total cost of ownership, through lower servicing and fuel costs.  The BEDEO electric vans also deliver an improved customer experience and brand image with improved passenger comfort due to the reduced noise, vibration and gear change jolts than a diesel equivalent, especially when in traffic.

Partnering to roll out Willemsen de Koning’s electrified fleet

BEDEO is proud to offer great customer service and support for companies that are electrifying their fleets.  Fortunately, WdK had a great deal of technical knowledge of electric vans, but still faced some challenges around overcoming range anxiety and how to make a large group of their drivers feel comfortable using full electric vehicles.

BEDEO worked with WdK to design and roll-out a comprehensive training programme including how to operate the vehicle, how to load it and the steps to take with the smart interface and notifications in the vehicle. This training, combined with extensive on-the-ground support of the drivers and the fleet managers if issues arose, ensured these challenges were addressed.

Continuing to work together, WdK is still providing BEDEO with important feedback so that continuous improvements can be made as well as consistent support offered. In partnership with WkD, BEDEO continually update a guide to the vehicles, so all new employees at WdK can be kept up to date.

‘Not a taxi company, a people company’

As a business WdK covers more than a hundred million kilometres per year, more than 2,500 times round the Earth.  Their focus on people, planet and profit ensures that wherever they can, they act sustainably and we are proud to support them in their drive to use CO2 neutral vehicles.

[1] The Netherlands permits only clean taxis and rental cars in cities from 2025

Media Contact:
Hannah Burgess
Email: hannah@hannahburgesspr.com
Tel: +44 (0) 7730 570975

The Hidden Cost of Refrigerated Home Deliveries

The boom in convenience and ease of home delivery has resulted in a significant increase in polluting and dangerous emissions from light goods vehicles in the UK, which have risen by at least 65% since 1990 [1]. When refrigerated vans are considered, the figures become even more alarming. CO2 emissions from refrigerated vans are nearly double the government’s target of 147 g/km, while NOX emissions exceed the Euro 6ab limit by more than three times, at 0.125 g/km [2]. As a result, vans have become a major contributor to air pollution in cities, responsible for 14% of NOx emissions from road transport [3].

BEDEO has been working with Ocado since 2019 to build electric refrigerated vans, helping them to clean up their fleet and supporting them in deploying cleaner, safer, and better-value electric van technology.

Ocado BEDEO Van

Expanding charging capacity and alleviating range concerns

Ocado initially rolled out BEDEO’s vans on a pilot basis to test the vehicles and charging capacity. It quickly became clear that the vans were performing well, and as more vans were ordered, Ocado expanded their charging capacity. BEDEO supported this process, bringing expert advice and partnerships with charging companies.

Bespoke charging solutions were also developed to meet Ocado’s specific needs. The increased weight from the electric powertrain was counteracted with the addition of innovative solar panels on vans, which supplies power back, ensuring that the BEDEO vans can run the TRU and complete a full delivery shift without charging.

Due to the nature of last-mile delivery, any charging issues that remained were alleviated by the schedule of the day. An average shift for a driver in a city rarely exceeds a 30-mile radius, with most drops occurring in a concentrated area. Even with shifts for the vans that start at 5.30 am and finish at 11 pm, the distance driven is often low, and charging can also occur when the van is restocked between deliveries, making the process seamless.

Working with Ocado to train their drivers

BEDEO’s electric refrigerated vans are a higher weight than a standard van, posing a challenge for Ocado’s delivery drivers – not all drivers had the license needed to drive this weight of vehicle, or the experience of driving an electric van rather than a standard diesel one.

The BEDEO team worked with Ocado to tackle this and encouraged the government to supply a derogation so that drivers could drive a higher weight electric vehicle. Additionally, the five hours of extra training required by the government were added to the Ocado training with BEDEO’s support so that new drivers had the skills to drive the vans.

Most important was making drivers feel confident and well-supported during this change in approach. BEDEO conducted handover training for drivers as standard when supplying vans, as well as going out on shift with some drivers to understand their day-to-day and troubleshoot any issues.

Drivers were quickly converted to the benefits of an electric van – in cities, vans with no vibration, exhaust fumes, or gears create a far more relaxed and comfortable driving experience.

Saving cost and increasing social impact

Ocado vans operate where people live, delivering essential food and supplies right to their front doors.  BEDEO has enabled Ocado to cut its emissions and continue to deliver on its corporate responsibility mission to change the way the world shops for good; to harness the unlimited potential of technology for people and the planet.

In addition, BEDEO electric vans have a lower total cost of ownership than a standard diesel van and are exempt from London’s ULEZ charge of £12.50 per day and congestion charging, enabling Ocado to save up to £7,500 in charges per year per van[4].

By working with BEDEO, Ocado can be confident that they are operating as efficiently as possible as a business on cost, and as effectively as possible environmentally, to protect the communities they serve.

 

 

[1] Delivering a Greener Future – Urban Transport Group

[2] Real-world CO2 and NOX emissions from refrigerated vans – National Library of Medicine

[3] Transport & Environment: Vans

[4] GreenFleet – London’s ULEZ marks the moment for EVs

Media Contact:
Hannah Burgess
Email: hannah@hannahburgesspr.com
Tel: +44 (0) 7730 570975

 

Congestion Charge: What’s changed?

Congestion charge has doubled for some fleets, since the introduction of new rates on the 22nd June. The original charge was £11.50 for all vehicles, which could be reduced to £10.50 using the Government’s Auto Pay scheme. This has now risen to £15 a day as part of TfL’s funding agreement with the Government after their £1.6bn bailout back in May.

Car traffic in the zone is already back to pre-pandemic levels and without changes car traffic could double. These new changes could see car journeys fall by a third and pollutant emissions reduced by up to 11% in newly charged hours.

Congestion Charge Changes

On top of the increased charge, the congestion zone is now operating for longer and on weekends. The new C-Charge sees drivers being charged from 7am to 10pm, 7 days a week – an extension of 4 hours each evening. As a result, many businesses and individuals who travel to central London outside normal business hours will start having to pay the £15 charge, which will hit those businesses delivering at all times twice as hard.

For a vehicle in operation every day, the previous rate was £220 a month plus the £10 a year to register that vehicle. With the new charges, this could increase to £450 per month. For a fleet of 100 vehicles, that’s an increase of £23,000 a month, i.e. a huge £270,000 per year. This large fee could be avoided by going electric, helping businesses save on both congestion charge and fuel.

Currently, only vehicles that meet Euro 6 standards (petrol and diesel), that emit no more than 75g/km of CO2 and have a minimum 20 mile zero emission capable range qualify for the 100% cleaner vehicle discount on Congestion Charge. From 25 October 2021, the cleaner vehicle discount will change so that only battery electric vehicles are eligible.

TfL has not confirmed when the fare will return to its previous rate, but says it will monitor the changes to see if they work as hoped. Their website reads:

“The temporary changes will be kept under review to ensure they remain effective in light of the transport challenges created by the coronavirus pandemic.”