Will Pay-Per-Mile Fees Benefit Mr. Reeves or Deter Electric Car Adoption?

3p: The cost per mile for an electric vehicle is minimal, yet it represents a significant shift in the UK’s approach.

Ministers have historically opposed any type of road pricing due to its potential political fallout. This stance might change next week. Rachel Reeves, likely accustomed to facing criticism over fundraising schemes, is expected to propose charges specifically based on the mileage of EVs.

The Treasury has nearly confirmed that some financial measures will be revealed in next week’s budget, though no specifics have been disclosed. As reported first by the Telegraph, starting in 2028, EV users will be able to pay an additional fee atop their yearly road tax or vehicle excise duty (VED) according to the miles driven that year. This could involve a self-reported distance estimate or an odometer check during an MOT.

The uptake of battery electric vehicles, which are cheaper to operate compared to petrol cars, is increasing. By 2024, these vehicles are projected to be driven an average of about 8,900 miles, based on statistics from the Department for Transport (DfT). At a rate of 3p per mile, the current 1.4 million EVs on the roads could generate £267 per vehicle, amounting to around £375 million annually.


The Treasury has effectively confirmed that a form of fee for EVs will be announced when Rachel Reeves presents her Budget. Photo: Carlos Jasso/AFP/Getty Images

Transport Secretary Heidi Alexander had difficulty dismissing a national road pricing scheme during Thursday’s Commons questioning, but a later “clarification” indicated that pay-per-mile for EVs remains a possibility.

Looking ahead, a worrying deficit in vehicle tax revenue is anticipated as the transition to EVs diminishes fuel tax revenue. While petrol and diesel vehicles contribute taxes based on fuel consumption, the shift to electric will alter this dynamic.

Latest forecasts from the Office for Budget Responsibility indicate that a fuel tax of 52.95p per liter (roughly 5p per mile for the average car) will yield £24.4 billion this year, but billions of this income will decline starting in 2030 when sales of new petrol and diesel cars are phased out.

The key challenge lies in identifying fair alternatives to an unsustainable tax structure, particularly as there is enduring opposition from the right to all types of road pricing, which has become entangled in a culture war over London’s Ultra Low Emission Zones (ULEZ) and low-traffic areas, arguing for increased surveillance and reduced freedoms.


Last year, London’s mayor, Sadiq Khan, abandoned a review of pricing after being overwhelmed by anti-ULEZ sentiment. Photo: PA Images/Alamy

Some economists are in favor of time- and congestion-based road pricing, which may serve as a fairer method for managing road usage, although it also raises concerns about additional tracking.

Steve Gooding, director of the RAC Foundation, asserts that any plan should prioritize simplicity. However, regarding privacy, he notes, “The volume of data generated by modern vehicles is substantial. If the DfT or DVLA began monitoring Fahrzeugen, people might feel closely scrutinized. Yet Elon Musk has a different view: [Musk] – They don’t seem to mind.”

A broader issue is that pay-per-mile may deter drivers from switching to electric vehicles, which is vital for reducing carbon emissions. Manufacturers, businesses, and motoring organizations like Ford, Autotrader, and the AA have expressed concerns about the timing of introducing new charges amid this transition. Under the UK’s ZEV obligation, car manufacturers are required to ensure that one in three cars sold next year is a zero-emission vehicle, escalating to 80% by 2030 (the remaining 20% can be hybrids).

Current grants for new electric cars can be as high as £3,750, making running costs more reasonable for some consumers; however, several discounts and tax exemptions have ceased. Transport for London recently confirmed that EVs will have to pay the capital’s congestion charge starting next year, with zero-emission vehicles also subject to VED from April onward.

New Zealand is raising alarms, according to a report from the Social Market Foundation (SMF). Electric vehicles became liable for road tolls last year, a system previously reserved for diesel cars, where drivers purchased permits in increments of 1,000 km (621 miles). This change, alongside the cessation of buyer incentives and tax exceptions, resulted in a dramatic drop in new EV sales, with market share plummeting from a peak of 19% to just 4%.


Electric car at a charging station in Auckland, New Zealand. Last year, EVs were made responsible for road user charges. Photo: Michael Craig/AP

The SMF noted that Iceland also implemented a pay-per-mile system for EVs last year, but maintained incentives and pricing differentials, resulting in a much less pronounced decline in market share.

Advocates of this emerging technology proceed with caution. The Electric Vehicle Association England, representing motorists, expressed to the Prime Minister that consumer confidence in EVs remains tepid.

For many individuals, particularly in lower-income neighborhoods or those reliant on public charging without driveways, operational costs no longer present the same appeal. Ginny Buckley, CEO of Electrifying.com, an EV review platform, stated: “For numerous people, the expense of running an EV could exceed that of a gasoline vehicle if they lack access to affordable home charging and depend on public networks.”

Graham Parkhurst, a professor of sustainable mobility at the University of the West of England, highlighted that the stark disparity between home chargers and public charging stations (which are subject to a 20% VAT surcharge) represents a “political time bomb,” further dividing socio-economic classes.

Even longstanding advocates for pay-per-mile, like Parkhurst, caution that such systems require careful consideration. “Charging based on mileage makes sense, similar to how fuel taxes function. However, we need time to devise how to integrate this into a broader transport taxation framework. If you need a vehicle, an electric car is undoubtedly the smarter choice,” he asserted.


Proponents of pay-per-mile warn that they need to be cautious in moving forward. Photo: nrqemi/Getty Images/iStockphoto

The think tank Resolution Foundation suggests that any mileage and weight-based charges should apply only to future EV sales.

Tanya Sinclair, chief executive of UK Electric Vehicle, agrees on the need for fundamental reform of car taxation, but emphasizes that the government must convey a clear intent to encourage the shift to electric vehicles. “Any actions that create confusion, like providing subsidies while also launching pay-per-mile charges, blur the message for consumers,” she notes.

A government spokesperson stated the administration would “consider further support” for EVs but emphasized: “While fuel tax applies to petrol and diesel, an equivalent for electric vehicles is lacking. We are aiming for a fairer system for all drivers, while facilitating the transition to electric vehicles.”

“The best time to integrate road pricing would have been in the past, but the political landscape is complicated,” noted Gooding. The cross-party Transport Select Committee advocated for urgent road pricing implementation in 2022 to replace all vehicle taxation for every vehicle type. Yet, no minister has shown enthusiasm for this. Mayor Sadiq Khan of London was compelled to reject the possibility of pricing last year due to overwhelming anti-ULEZ sentiment, despite earlier indicating it was a viable option.

According to Mr. Gooding, introducing new policies is “most effectively undertaken with the minimum number of vehicles involved, and limiting it to EVs could be more manageable than developing complex charges for the 34 million vehicles already in circulation.”

For some, including Buckley and the Transport Improvement Campaign, a controversial yet clear solution remains: terminate the 15-year freeze on fuel taxes and the temporary 5p reduction currently in effect since 2022.

The SMF reported that had the levy remained consistent in real terms, nearly £150 billion would have been accumulated in public funds. Regardless of how the pay-per-mile model evolves, Reeves stated, “We must ensure that taxes on EVs for businesses remain lower than those on petrol.” “The simplest method of preserving this variance is by increasing fuel taxes.”

Source: www.theguardian.com

Study Reveals Plug-In Hybrids Emit Nearly the Same Pollution as Gasoline Vehicles

Plug-in hybrid electric vehicles (PHEVs) release nearly five times more greenhouse gas emissions than reported statistics suggest. I found a report detailing this issue.

These vehicles can operate on electric batteries as well as internal combustion engines and have been promoted by European manufacturers as a means to travel longer distances while lowering emissions—offering an alternative to fully electric cars.

Research indicates that PHEVs emit just 19% less CO2. An analysis from the nonprofit organization Transport and Environment was released on Thursday, showing laboratory tests estimated 75% less pollution.

Researchers examined data from fuel consumption meters in 800,000 vehicles registered in Europe between 2021 and 2023, discovering that the real carbon dioxide emissions from PHEVs in 2023 were 4.9 times greater than those from standardized lab tests, an increase from 3.5 times in 2021.

“While official emissions are declining, actual emissions are on the rise,” remarked Sofia Navas Goelke, a researcher at the Institute for Transport and Environment and co-author of the report. “This widening gap is becoming a significant issue. Consequently, PHEVs are now polluting nearly as much as traditional petrol vehicles.”

The researchers identified that much of this disparity stems from an overestimation of the “utility factor” (the proportion of miles driven in electric mode compared to total miles), finding that only 27% of driving was done in electric mode, versus the official estimate of 84%. The analysis noted that the European Commission proposed two amendments to the utility coefficient ratio, which lessened the gap but didn’t eliminate it entirely.

Even when operating in electric mode, pollution levels were found to be significantly higher than official figures suggest. Researchers indicated this was due to the electric motor being insufficient for sole operation, with the engine burning fossil fuels for almost one-third of the distance traveled in electric mode.

Patrick Plotz, head of energy economics at the Fraunhofer Institute for System Innovation, who did not participate in the study, described it as a “very useful contribution” to ongoing discussions, as some in the automotive industry have claimed there’s insufficient data to accurately gauge real emissions.

“Without a doubt, the disparity between official and actual fuel consumption and CO2 emissions for PHEVs is substantial,” Plotz remarked. “Their emissions are much higher than those of gasoline or diesel cars,” referring to the study on the topic. “Any policy adjustments regarding PHEVs should be thoughtfully considered in the context of this data.”

Hybrid vehicles have re-entered political discourse as automakers urge the EU to ease carbon emission targets. The push to ban new internal combustion engine vehicles by 2035 is facing strong lobbying from the auto sector, along with resistance from member states with significant automotive industries.

“There should be no significant reductions in 2035,” stated German Chancellor Friedrich Merz following a summit with Germany’s struggling automotive sector, committing to “do everything possible in 2035.” Other senior German leaders have cited plug-in hybrids as an example of “flexibility” that could be integrated into the legislation.

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Researchers calculated that the undervaluation of PHEV emissions artificially facilitated compliance with the EU’s average vehicle CO2 regulations, enabling four major car manufacturers to evade over €5 billion (around £4.3 billion) in fines between 2021 and 2023. The study indicated that PHEV drivers are likely to incur approximately €500 more in annual running costs than expectations based on lab tests.

“The exaggerated claims made by manufacturers regarding their plug-in hybrid vehicles are clearly misleading,” observed Colin Walker, a transportation analyst at Energy and Climate Intelligence.

“Consumers are misled into thinking that by choosing a PHEV, they are aiding the environment and saving money,” he pointed out. “In reality, PHEVs are only marginally more efficient than regular petrol and diesel vehicles concerning fuel and CO2 consumption, resulting in higher operation costs.”

Source: www.theguardian.com

Severe Nausea: Are Electric Vehicles Causing Car Sickness?

During a year of driving his daughter to school in a new electric vehicle, Phil Bellamy realized that she was anxious about taking a 10-minute ride every day.

While Bellamy, 51, had no issues with the car, his teenage daughter experienced nausea each time she got in. Research indicates that this is a common problem: many individuals who do not suffer from motion sickness in traditional vehicles find themselves affected by it in electric vehicles (EVs).

Concerned about his family’s aversion to riding in his car, Bellamy altered his driving style and considered purchasing a different vehicle, but the issue persisted. His daughters try to avoid traveling with him whenever they can.

“If we go on a trip, they make sure to take motion sickness tablets immediately. They wouldn’t even think of getting in the car without them,” he explains.

Bellamy appreciates driving electric cars for their quietness and smoothness compared to traditional combustion engine vehicles, though he hopes manufacturers will address the concerns of passengers affected by motion sickness.

Factors contributing to motion sickness include the relatively rapid acceleration of EVs compared to gasoline vehicles, the regenerative braking system, and the absence of sensory cues such as engine noise and vibrations while driving.

Research from China, a major electric vehicle producer, has found that EVs tend to induce more severe motion sickness symptoms than traditional vehicles.

Content creator Atia Chain from London shared her experiences on TikTok about suffering from car sickness in an EV this summer when she relied on Ubers for transportation.

Chain reports feeling “extreme nausea” shortly after getting in the EV, which ceased soon after she exited. It took her some time to realize that this happened only in electric vehicles. Now, she tends to avoid Ubers due to the prevalence of EVs.

“Usually, the nausea started right away as soon as the trip began. The first minute was particularly bad. I would roll down the window and find something to distract myself,” she shares. “The sickness lingered throughout the journey. If the Uber ride was 20 minutes long, I’d count down the minutes until I could get out.”

John Golding, a professor of applied psychology at Westminster University in London, explains that motion sickness has a particularly strong effect on passengers because it relates to their ability to anticipate changes in movement.

While the driver controls the vehicle, passengers, especially those seated in the back, may feel helpless. This could pose challenges for the future of self-driving cars.

Golding notes that the automotive industry is aware of the issue of motion sickness among some EV passengers and is actively researching ways to help them predict movement changes. For instance, car seat vibrations may alert passengers to changes in direction.

He suggests that individuals may also use motion sickness medication or adopt behavioral changes to cope. “The simplest solution is to sit in the front seat and have a clear view. It allows you to see and anticipate what will happen next, whereas sitting in the back means you can only see what has already happened,” he advises.

Consider motion sickness medication which can be obtained in patches or tablets from pharmacies, helping manage how your brain and body react to movement. It’s most effective when taken before travel.

Wear acupressure bands which some studies suggest may help, though results could primarily be attributed to the placebo effect. “If it works for you, don’t dismiss it,” Golding remarks.

Listen to low-frequency sounds. A study from Nagoya University in Japan indicates that certain vibrations at 100Hz may stimulate a part of the inner ear responsible for detecting gravity and acceleration.

Source: www.theguardian.com

Data Insights: Are Electric Vehicles at Risk from Cyber Espionage and Hacking?

Mobile phones and desktop computers have long been targets of cyber espionage, but how vulnerable are electric vehicles?

On Monday, a newspaper reported that a British defense company, engaged with the UK government, advised its staff against connecting mobile devices with Chinese-made electric vehicles due to concerns over potential data extraction by Beijing.

This article examines the security issues related to electric vehicles.


Can an electric car snoop on you?

Security experts quoted by the Guardian suggest that electric vehicles, being the most advanced vehicles on the market, could be vulnerable to hacking.

Rafe Pilling, director of threat intelligence at cybersecurity firm SecureWorks, notes that electric vehicles can produce a wealth of data that could interest a hostile state.

“There are numerous opportunities to compromise these vehicles as they collect data,” he states.

He further explains that WiFi or mobile connectivity can enhance data access for manufacturers through the “over-the-air” software update feature.

“Modern vehicles equipped with over-the-air updates, various sensors, and external cameras could potentially be repurposed as surveillance tools,” he adds.

A mobile phone connected to a car via a charging cable or Bluetooth is another significant data source, he mentions.


Should all car drivers be worried?

Experts indicate that individuals in sensitive sectors, such as government or defense, should exercise caution.

“If you’re working on a sixth-generation fighter jet and connect your work phone to your personal vehicle, be mindful that this connection could compromise your mobile data,” states a researcher at the Royal United Services Institute Think Tank.

Nate Drier, tech lead at cybersecurity firm Sophos, highlights the option to select “don’t trust” when connecting a phone charger to a car; however, this would forfeit many functionalities, such as music streaming or messaging.

“Most people tend to maintain that connection for the convenience it brings,” he acknowledges.

Pilling adds that even rental car users should remain vigilant.

“Generally, individuals may leave copies of their contacts and sensitive information in their car’s entertainment and navigation system, often forgetting to remove them before relinquishing the vehicle, making phone synchronization a risky move,” he advises.


Why are Chinese vehicles the focus of concern?

China is a significant producer of electric vehicles (EVs) through brands like BYD and XPENG. Coupled with the Chinese state’s practices in cyber espionage, this raises concerns. For instance, China’s National Intelligence Act of 2017 mandates all organizations and citizens to “support, assist, and cooperate” with national intelligence efforts.

“Chinese law compels companies to align with national security, so one must consider the possibility of surveillance capabilities in their vehicles,” he notes, albeit admitting that there is “no evidence” currently linking Chinese vehicles to espionage.

Experts believe that while electric vehicles are a concern, devices like mobile phones, smartwatches, and other wearables are more likely targets for spying.


What does the UK government say?

A government representative refrained from commenting on specific security protocols but affirmed that “protecting national security is our utmost priority, and strict procedures are in place to ensure government sites and information are adequately safeguarded.”

A more detailed statement released last month by Defence Minister Koker, indicated that the Ministry of Defence (MOD) is collaborating with other government bodies to understand and mitigate potential security threats from all types of vehicles, not just those manufactured in China.

Further reports state that while there are no overarching policy prohibitions on the movement of Chinese-made vehicles, EVs incorporating Chinese components have been banned from sensitive military locations.

Nevertheless, individual defense entities may impose stricter requirements for vehicles in particular settings.

BYD was reached for commentary, while Xpeng stated it is “committed to upholding and complying with applicable UK and EU privacy laws and regulations.”

SMMT, a trade association representing British automakers, responded:

“Our industry is dedicated to maintaining a high standard of customer data protection, which includes the responsible use of data. Features such as apps and paired phones can be removed from vehicles based on individual manufacturers’ guidelines, ensuring drivers feel secure.”

Source: www.theguardian.com