December 2021 Newsletter

October 2021 Newsletter

December 2021 Newsletter – Contents

  • Introduction
  • Client News – Energy Company, Animal Charity, Timber Distribution Group
  • EVP News – Christmas party, Andy Cronin holiday
  • Market News – Cut in electric vehicle grant, new AFR and AER
  • Monthly question – Are the changes to the EV grant too soon?
December 2021 Newsletter

December 2021 Newsletter – Introduction

EVP get an early Christmas present…

Big news in December as EVP Solutions have been engaged by a large energy provider. We have also ‘wrapped up’ some projects before the new year!

EVP staff have also been busy, enjoying our Christmas party. Our director Andy jets off to sunny Dubai!

Major news in the electric vehicle industry as the government cut the EV grant. There are also changes to the AFR and AER.

Finally, December’s monthly question follows the major news, do you believe the Government have cut the grant at the right time?

Client News

December 2021 Newsletter – Client News

Major Energy Supplier

December kicked off very well for EVP Solutions, as we were awarded a contract with a household energy supplier. The project involves the development of a vehicle maintenance strategy for the client’s fleet.

The client’s fleet consists of around 1340 vehicles, with UK-wide coverage. Therefore, it is vital the strategy in place allows access across the country.

Animal Charity

EVP Solutions also finished off an enjoyable project with a well-known animal charity. The fleet was around 285 vehicles.

The charity required a total fleet review. Some aspects include vehicle funding, vehicle specification, utilisation of vehicles and vehicle disposal.

Lastly, we helped the charity work with the selected supplier through a complexity, acting as the facilitator for the implementation process.

December 2021 Newsletter – EVP News

Christmas Party

At the start of December, the EVP team enjoyed their staff night out.

Firstly, the team headed to the Gasworks Bar for some drinks and (very competitive!) Shuffleboard.

Next, we went to Hawksmoor, where the steak is king. The food was brilliant, and the night enjoyed by all.

Andy Cronin Holiday

Our director Andy also spent his Christmas in the sun of Dubai with his family. A very relaxing time and a very happy daughter after 1 week in the swimming pool.

December 2021 Newsletter – Market News

Government cut electric vehicle (EV) grant

The major news this December comes from the Office for Zero Emission Vehicles (OZEV). On December 15th, OZEV announced that the Plug-in Vehicle Grants (PiCG) and the Plug-in Vehicle Grant (PiVG) would change, in both grant amount and also vehicle eligibility.

Previously, the PiCG had given buyers 35% off the cost of an EV, up to £2,500. However, the maximum amount has now been cut to £1,500. Furthermore, the maximum RRP of electric cars has been reduced from £35,000 to £32,000. Lastly, hybrid electric cars which have CO2 emission of less than 50g/km and can travel 70 miles without any emissions are no longer eligible.

There are also changes to the PiVG. Small vans (2.5 tonnes or less) used to receive 35% off purchase price up to £3,000, which has now been reduced to £2,500. Larger vans (between 2 – 3.5 tonnes) has been reduced from £6,000 to £5,000. There has been no change to vehicles over 3.5 tonnes.

Changes to the AFR and AER

There have also been changes to the Advisory Fuel Rate (AFR) and the Advisory Electricity Rate (AER), to reflect the increases in costs.

Changes are as follows:

  • Diesel cars:
    • greater than 2,000cc, has increased to 16ppm.
    • 1,601 – 2,000cc has increased to 13ppm.
    • up to 1,600cc has increased to 11ppm.
  • Petrol cars:
    • greater than 2,000cc, has increased to 22ppm.
    • 1,401 – 2,000cc, has increased to 15ppm.
    • up to 1,400cc, has increased to 13ppm.
  • LPG vehicles:
    • greater than 2,000cc, has increased to 15ppm.
    • 1,401 – 2,000cc, has increased to 10ppm.
    • up to 1,400cc, has increased to 9ppm.
  • EVs, has increased to 5ppm.

December 2021 Newsletter – Monthly Question

Have the Government reduced the EV grants too soon?

As you saw above, the Government have chosen to reduce the EV grants.

Of course, this is going to add cost to any fleet who are seeking to buy EVs.

The Department for Transport (DfT) has said the reduction will make the ‘available funding go further’, therefore allowing more individuals and businesses to make the switch to EVs.

However, there has been significant criticism from the industry following the decision.

Their reasons for criticising the decision vary significantly. Some question whether the decision could have been announced earlier, although that inevitably would have led to a surge in orders. Others argue it does not make sense to make the change when inflation is at its highest, and Covid-19 is further impacting the economy.

Other stakeholders believe that the grant was first introduced to kickstart growth in the EV market, which has now happened.

Therefore, we ask our readers the following question.

Do you think the Government have cut the EV grant at the right time?

  1. The EV market has been kickstarted, which was the intention of the grant. Plus, funding is limited and should be spread.
  2. The grant was a lifeline for those who wished to make the switch to EV.

If you would like to answer our question, please reply on our LinkedIn Page, or to find out more, please visit our website.

If you would like to learn more about our services, please get in touch.