Office for Zero Emission Vehicles extends PiCG eligibility to cater for delivery delays

Tags: #government-ev-policies #electric-vehicles #ev-ownership #ev-cost-of-ownership

The Office for Zero Emission Vehicles, OZEV, is temporarily extending the plug-in grant delivery period from 12 to 18 months to cater for the delays in deliveries which would otherwise see people lose their grant eligibility. 

It’s a surprise move, but one that makes sense given the sheer number of people who are experiencing delays in deliveries due to ongoing global supply chain difficulties.

Announced by the BVRLA, which has been pushing the government for this extension to help secure its business in the rental and leasing industries, it means that the PiCG now applies to orders placed between June 14 2021 and March 31 2023. This covers the period one year before the PiCG was scrapped through to the first month of new registrations next year.

By way of example, if a car buyer has ordered an EV in November last year and the purchase was registered on the grant portal at the same time, they were running out of time to benefit from the grant under the previous 12 month limit which would have elapsed in November this year. Under the temporary extension, they now have until May 2023 for their car to be delivered and the grant will be honoured.

This move is especially timely given the huge growth in EV sales so far in 2022. According to the SMMT’s latest registration statistics, EVs are now the second most popular fuel type in the UK with 175,614 registered year-to-date – more than mild hybrids and fully hybrids which rank third and fourth. This is up 14.5 per cent compared to the same time last year and in fact, September saw the millionth EV registered on the UK’s roads.

Of course, for those affected by this extension the grant will only amount to £1500 off a car costing less than £32,000 – the final and least generous amount on offer before it was scrapped – but it’s a bonus for those who were looking at losing that money.

The scrapping of the PiCG was designed to reroute the money “towards extending plug-in grants to boost sales of plug-in taxis, motorcycles, vans and trucks and wheelchair accessible vehicles”, as well as freeing up more money to fund the main challenge facing the EV market now – charging anxiety – by improving the public charging network.

At the time, industry reaction was withering, though EV sales have continued to be strong. Now, with government U-turns seemingly en vogue, we suspect that it will be far better received.