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Electric cars: why we're just getting started
Feb 17, 2020
How to cut costs and lower your emissions with electric cars
Discover how your business can benefit from all-electric transport
UK CO2 emissions
Figures don’t add up to 100% due to rounding. Source: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/790626/2018-provisional-emissions-statistics-report.pdf
Every year, UK cars pump out 53 million tonnes of CO₂. That’s the same weight as 1,100 Titanics, 5,800 Eiffel Towers or more than 4 million London buses.

But why is CO₂ the bad guy? CO₂ is a heat-trapping greenhouse gas, and a big contributor to rising global temperatures. In the last 800,000 years levels of CO₂ have never been above 300 ppm (parts per million). Today they’re at 412 ppm.

The only way to get us out of this mess is to reduce CO₂ emissions, fast.

It’s businesses like yours – not consumers – that can make the biggest difference: 56% of all new car sales in the UK are fleet or business purchases. While they won’t solve climate change on their own, EVs are a big part of the solution. So, what are the business benefits of going electric?

Electrifying savings

How your business can benefit from EVs

- Lower running costs
As much as a fifth cheaper to run compared to petrol or diesel. Maintenance costs are around half as much.

- 100% off the cost can be offset
For the tax year 20/21, the purchase price of any EV registered from April 2020 and purchased by your company for business use can be offset against your tax bill.

- Up to £8000 off the price of an electric van
Get as much as 20%, up to a maximum of £8,000, off the price of an electric van.

- 0% Benefit-in-Kind tax
Company car tax from April 2020 will be 0% for EVs compared to 25% or more for ICE vehicles. It rises to 1 % for 2021-22 and 2% for 2022-23. 

 - Big incentives to install charging points
The Workplace Charging Scheme offers generous incentives for any business looking to install chargers. Speak to British Gas Business today to find out how you can save money. 

 - Reduced overall CO₂ emissions
Businesses are now obliged to report CO₂ emissions. EVs help bring the figure down.

- Boosts your green credentials
We know that customers and clients expect your business to do its bit to reduce emissions. EVs help you do just that. 

Plug-in to the electric revolution

Renewable energy has blossomed in the last 15 years. At British Gas, 43% of the electricity we supply is generated by solar, wind, tidal and biomass energy sources – all renewables.

This makes electric cars an even more attractive proposition if you’re looking to fight climate change and breathe cleaner air.

EVs are still pricier than their ICE equivalents, but prices are tumbling. The cost of battery packs, by far the most expensive component of an electric car, fell nearly 85% between 2010 and 2018. With a complete ban on the sales of internal combustion engine vehicles coming in 2040 and glowing reports from new EV owners, the future is electric.
Charging ahead

Charging is one area where petrol and diesel cars still have an advantage. While it takes 5 minutes to refuel an ICE car, even the fastest-charging EVs take 20-30 minutes.

The number of charging connectors (actual plugs, not just charging points) has increased by a factor of five since 2011, but more needs to be done. To help, British Gas Business has teamed up with Ford and other manufacturers to install charge points across the country.

EVs on the grid 

How will the UK’s electricity supply cope with millions of cars charging overnight? Far from overwhelming the UK’s energy grid, EVs may even help balance the peaks and troughs of electricity demand. Car maker Nissan has led the way by including vehicle-to-grid (V2G) technology in its popular Leaf EVs. V2G means electric car batteries can send power back to the grid, not just receive it – letting power companies use EV batteries as short-term energy storage.

Innovations like V2G have the potential to cause a dramatic shift in the way energy is used in the UK. That’s why Centrica is working with BP, Aviva and Hastings Direct as part of the Smart Mobility Living Lab to develop new ways to generate and distribute energy.

What EVs mean
for your business

Many large UK supermarkets have EV chargers in their customer carparks, 40% of supermarket chains already providing charging points and a further 30% with plans to add them. 

Grocery retailers have been cautious when it comes to making the switch to all-electric vehicles for their business fleets. Just under 30% have made the move, but the future looks bright: 60% have plans to swap fossil fuels
for electrons. 

 Why offer customers
charging points?

EVs are well-suited for last-mile delivery and for extensive use in your supply chain, across delivery hubs and manufacturing facilities..

Before you go electric, make sure you ask the right questions: what are your average journey distances? Where will your EVs be charged, when, and by who? How many charging points will you need? Where will the energy come from? And what’s your process for ensuring your EVs are charged. 
How can electric cars save your business money?
See the lifetime cost comparisons of electric cars vs. petrol and diesel.

The future is electric

Talk to British Gas Business today and find out how you can save money, reduce emissions and change attitudes with our EV chargers and EV-friendly business energy tariffs. Call 0330 1281 094 or email andrew.winter@britishgas.co.uk 
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Contact us

Call now to get an energy quote for your business or email andrew.winter@britishgas.co.uk
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Wholesale energy prices have experienced unprecedented levels of volatility since the end of summer 2021, with both day ahead/spot and future contracts surging to all-time highs. In the last couple of months, prices have decreased but still remain high compared to a year ago. This period of high energy prices is expected to continue for the foreseeable future (see next section). Energy prices have surged for a number of reasons: A global increase in gas demand following the ease or end of Covid-related restrictions throughout 2021. After the pandemic, economies across the world started to recover. Asian countries like China saw their imports of Liquified Natural Gas (LNG) increase. This resulted in lower LNG shipments to the UK and Europe. On the supply side, the Covid-19 lockdowns pushed some maintenance work from 2020 into 2021 at a time when demand was recovering. In 2021, gas production hit a record low of 363TWh, 47TWh below the previous record low in 2013. Low production was the result of an extensive summer maintenance schedule which saw shutdowns at several major terminals, as well as the Forties Pipeline System which serves a significant proportion of UK gas and oil production. A lack of wind in the summer resulted in higher demand for conventional power. European gas storage in 2021 and Q1’22 remained far below previous years and it’s unclear how these are going to be replenished in the summer given the concerns around supply including the potential suspension of Russian gas flows due to sanctions. The 1,234km offshore Nord Stream 2 gas pipeline, which was designed to double the flow of gas between Russia and Germany (and by extension the rest of Europe) has been abandoned following the invasion of Ukraine. Gas storage in the UK is extremely minimal with capacity at less than 2% of the UK’s annual demand, compared with 22% for other European countries. Whilst the UK is not heavily reliant on gas coming from Russia, it sources almost half it’s gas supply from Europe. Hence, wholesale gas and power prices in the UK are now subject to knock-on-effects from the conflict in Ukraine.
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