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The Scottish energy firm has joined bp, BT, Direct Line Group, Royal Mail, Severn Trent and Tesco.
The UK's ambitions for electrification of road transport are world-leading and, in a report published today, the seven companies – working together as the Electric Vehicle Fleet Accelerator (EVFA) – have outlined a series of urgent actions needed from both industry and Government to deliver the targets.
The EVFA grew from Prime Minister Boris Johnson's Build Back Better Business Council. It brings together CEOs of companies that own and operate some of the largest van fleets in the UK and companies involved with infrastructure, EV charging, retail and insurance and repair.
Prime Minister, Boris Johnson, said: "I wholeheartedly welcome this commitment by leading employers to fully electrify their van fleets by 2030. This announcement will be a major boost to British vehicle production.
"The government is committed to providing the electric charging points and other infrastructure the UK needs as we build back greener."
The report details how supportive Government policy could help unlock private sector investment of £50 billion in infrastructure and in electric fleets in the UK over the next five years.
If the Government delivers on this agenda, the EVFA members have committed to converting the fleets involved to electric vehicles by 2030 and to buying British - buying 70,000 British-built vans by 2030 or sooner.
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They hope this clear statement of intent will act as a stimulus and help spur the investment decisions needed to develop EV van manufacturing in the UK.
The EVFA members believe this electrification of fleet vehicles can have much wider benefits beyond their businesses, catalysing the mass adoption of EVs in the UK.
Keith Anderson, CEO of ScottishPower: "It's great to see some of the UK's biggest companies making the switch to EVs early but we have to remember the power network is vital to enabling this transition.
"The electrification of all EVs across the UK will mean a doubling of demand through our grid network and it won't be ready without urgent action and investment in the grid system – and this investment must happen now and must come ahead of increasing demand. We've outlined a planned £3.2bn of investment so our network has the capacity needed to reach Net Zero. Getting this right will support thousands of green jobs and help unlock billions of private sector investment."
The upgrading of the grid and expanding national charging networks that will result will build wider confidence in using EVs. And, as fleets and businesses account for 60% of new vehicle registrations, their electrification will also build and drive an active second-hand market – the main vehicle market for most consumers.
If the infrastructure and frameworks are put in place to enable this, the companies believe wider customer demand can shift towards EVs sooner than is currently expected.
Report for action
The EVFA's report sets out detailed recommendations for action, immediately and over this next decade, and by both industry and Government. It is focused in four key areas:
• Future-proofing the electricity network infrastructure: ensuring that price controls and funding measures reflect the scale of the challenge, the need to invest in the network ahead of need, and support levelling up with investment in areas the market doesn't reach.
• Enabling the UK-wide rollout of charging infrastructure: fast-tracking EV charging infrastructure in the planning system, aligning with local authorities to unlock land for charging infrastructure; setting clear funding frameworks.
• Overcoming demand obstacles: increasing capital support for grid reinforcement costs, introducing minimum standards for reliability, safety and interoperability, and improving access to public charging networks.
• Expanding the supply of UK-made vehicles: providing strong demand signals to OEMs from fleets, setting increasing requirements for zero-emissions vehicles for manufacturers, and incentivising second hand EV market with VAT exemption.
