CMA unlocks electric vehicle charging competition for motorway drivers
The CMA has secured commitments from Gridserve which will unlock competition and increase choice of electric vehicle chargepoints on motorways for drivers.
Image credit: CMA
Following the launch of its investigation in July 2021, the Competition and Markets Authority (CMA) has secured legally-binding commitments from Gridserve, which also incentivise investment in the market now.
Gridserve, which owns The Electric Highway – a major chargepoint operator in Great Britain – has agreed:
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Not to enforce exclusive rights in contracts with Extra, MOTO or Roadchef, after November 2026, which currently cover around two-thirds of motorway service areas in the UK. In doing so, Gridserve has committed to reducing the length of the exclusive rights in the current contracts with MOTO by around 2 years and Roadchef by around 4 years (the contract with the third operator, Extra, is due to end in 2026).
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Not to enforce exclusive rights at any Extra, MOTO or Roadchef sites that are granted funding under the UK government’s Rapid Charging Fund (RCF). This means that, in such cases, competitor chargepoint operators will be allowed to install chargepoints regardless of the exclusivity in The Electric Highway’s contracts.
Each of the motorway service area operators – Extra, MOTO and Roadchef – and Gridserve have also promised not to take any action that would undermine these commitments.
Ann Pope, the CMA’s Senior Director of Antitrust, said:
We need a combination of investment now and healthy competition going forward to make sure chargepoints are installed at scale where people need them, for a fair price.
Today’s commitments strike the right balance. Gridserve will continue to invest in the much-needed roll-out of chargepoints across the country but the exclusivity linked to its investment won’t be an undue barrier to others competing in the near future.
Alongside reducing Gridserve’s exclusivity, the CMA’s action will also allow the RCF to be rolled out as planned and provide drivers with faster charging. This funding is intended to encourage the installation of chargepoints at motorway service areas, but it is expected to only be available for sites with more than one chargepoint operator. Without the commitments, Gridserve would have retained exclusivity at the vast majority of motorway service areas and wide take-up of the RCF would not have been possible.
Gridserve has commenced a significant new programme of investments ahead of expected increases in demand, as people switch to electric vehicles in the lead-up to the 2030 ban on the sale of new petrol and diesel cars.
The CMA consulted on the commitments extensively with industry, regulators, and consumer organisations before accepting them, which now brings this investigation to a close.
The CMA has also written an open letter, reminding the sector of its obligation to comply with competition law in relation to electric vehicle charging arrangements.
For more information about this case visit the ‘investigation into the supply of electric vehicle chargepoints on or near motorways’ case page.
Information about the CMA’s wider work into electric vehicle charging – including its final market study report and recommendations – can be found on the ‘electric vehicle charging market study’ case page.
Notes to Editors
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Gridserve acquired The Electric Highway from Ecotricity in June 2021.
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The RCF will launch in early 2023 and future-proof grid capacity through a one-off investment at motorway service areas and major A road service areas in England.
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Gridserve refers to: Gridserve Holdings Limited.
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The Electric Highway refers to: The Electric Highway Company Limited.
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Extra refers to: Extra MSA Property (UK) Limited (and other companies in the Extra group of companies that have entered into the relevant contracts).
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MOTO refers to: MOTO Holdings Limited and MOTO Hospitality Limited.
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Roadchef refers to: Roadchef Limited.
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All media enquiries should be directed to the CMA press office by email on press@cma.gov.uk, or by phone on 020 3738 6460.