CMA launches investigation into Gridserve’s Electric Highway

The Competition and Markets Authority (CMA) has launched an investigation into the Electric Highway charging network over concerns that its exclusivity agreements with motorway service operators are hindering competition.

Gridserve recently relaunched the network after acquiring it from energy supplier Ecotricity and beginning a programme to replace chargers with more modern and powerful units.

The CMA said it is worried that exclusivity agreements with three motorway service operators – Moto, Roadchef and Extra – are making it difficult for other companies to provide competing chargepoints.

It noted that, with the exception the Tesla superchargers that can only be used by that make, Electric Highway currently provides 80 per cent of all chargepoints at motorway services in the UK, while its long-term exclusivity agreements, lasting between 10 and 15 years, cover around two-thirds of all motorway service stations.

“This could result in drivers losing out on the benefits of competition such as greater provision, more choice, competitive prices and reliable, high-quality chargepoints,” the CMA stated.

The authority announced the investigation alongside the launch of the final report from its study on the electric vehicle (EV) charging market. The report highlighted a “postcode lottery” across the UK, with the number of chargepoints per capita in the Yorkshire and Humber regions just a quarter of the rate in London.

It said while some parts of the sector are developing relatively well, including at locations such as shopping centres, workplaces and private parking in garages and driveways, others are facing problems that may hinder the rollout of electric vehicles and the government’s plans to ban the sale of new petrol and diesel cars by 2030.

In addition to lack of choice and availability at motorway service stations, the CMA said it is particularly concerned about the slow rollout of on-street charging by local authorities and a dearth of chargepoints in rural areas.

The CMA said its research also found that charging can be frustrating for drivers, with key issues including the reliability of chargepoints and difficulty in comparing prices and paying.

It set out four principles that charging should adhere to:

• Working chargepoints must be easy to find, with operators providing up-to-date availability and working status information.
• Charging must be simple and quick to pay for such that people don’t need to sign up and contactless payment is widely available.
• The cost of charging must be clear, with a standard method pricing such as per kilowatt-hour of electricity.
• Charging must be accessible such that chargepoints can be used by any type of electric vehicle.

CMA chief executive Andrea Coscelli said: “Electric vehicles play a critical role in meeting net zero but the challenges with creating an entirely new charging network should not be underestimated. Some areas of the roll-out are going well and the UK’s network is growing – but it’s clear that other parts, like charging at motorway service stations and on-street, have much bigger hurdles to overcome.

“There needs to be action now to address the postcode lottery in electric vehicle charging as we approach the ban on sales of new petrol and diesel cars by 2030.

“Our recommendations will promote strong competition, encourage more investment, and build people’s trust, both now and in the future.”

Among the CMA’s recommendations are that the government sets out an “ambitious” national strategy for rolling out EV charging; supports local authorities in rolling out on-street charging, including defining a clear role for councils; and attaching conditions to its £950 million Rapid Charging Fund, which it is planning to use for grid upgrades at motorway service stations, to open up competition.

The Department for Transport recently released its transport decarbonisation plan, which included a new £90 million Local Infrastructure Fund that will open in 2022 and assist the rollout of on-street charging and rapid charging hubs.

Responding to the announcement of an investigation into Electric Highway, a spokesperson for Gridserve said: “We acquired the Electric Highway network less than two months ago to accelerate decarbonisation in-line with net zero targets and provide the best possible consumer experience to make driving an electric vehicle as attractive as possible to everyone.

“We have already made incredible progress upgrading the original Electric Highway network. This has included replacing chargers in over 70 locations in less than eight weeks with new technology, contactless payment, reliable charging with 24/7 customer support, and introducing a customer charter – all while retaining highly competitive prices.

“Our focus is to find a path forward that addresses the concerns raised by the CMA, enabling us to retain momentum and continue to swiftly deliver the net zero charging infrastructure plans and investment we have worked so hard to put in place, that support the successful uptake and transition to electric vehicles, in-line with the government’s clearly stated objectives.”

The spokesperson said all of the new chargers it is installing comply with the four principles set out by the CMA.