The Electric Highway

The firm
The Electric Highway is the largest
chargepoint operator on motorways. It
has a very strong position, with a share of
80% of all open network EV chargepoints
at MSAs in Britain. They have a network
of 247 chargepoints with a power rating
of at least 50kW at motorways.

It is present at nearly all motorways and

faces virtually no competition. Even
across all chargepoints within half a
mile of the motorway, including sites
that offer a much smaller range of
amenities such as hotels, the Electric
Highway’s share of supply is 59%.

Product details
Electric vehicle chargers.

En-route charging
Installed at motorway
stations.
Estimated 2,300 needed.

On-street charging
Quality: Evidence shows Only there1,000
have on-street
been very
low levels of customer satisfaction
chargepoints with of
outside EV
charging at MSAs. In a recent, despite
London - out of 5,700 in the the
Electric Highway being the largest en-route UK.
operator, it had Over
by far25%
the of
lowest customer
drivers don’t
Shares of supply of open-network rapid satisfaction
havescore out of or
a driveway thegarage
top 16
chargepoints at MSAs in Britain June chargepoint operators.
(8 million+ households)
(Source: CMA) Can save over £100 yearly
A major cause of theseusingpoor outcomes
on-street is the
charging
lack of recent upgrades to EV charging
infrastructure at MSAs. The Electric Highway
had not upgraded its hardware for many years;
most of its hardware has been in place since
September 2013. Many respondents submitted that the Electric Highway’s network is
old and unreliable.

Barriers to entry
High fixed costs
Due to upfront infrastructure costs (for example, the costs of installing chargepoints
and connecting to the grid) it can be a very lengthy process to connect to the grid
and upgrades can be very costly, which has a significant impact on the pace and
incentives for firms.

The costs of the installing networks needed at MSAs for electric chargers are
particularly high, as they tend to be in locations further away from the distribution
network. Estimates indicate that the average cost of installing network connections
at each MSA to accommodate the electrification of cars and vans will be around
£7m, and at some sites could be as high as £27m.

Public charging chargepoint operators generally only recoup the costs of their
investment when their chargepoints are used. This can be risky at this early stage of
the sector when EV take-up is fairly low (albeit increasing) and given ongoing
uncertainties around people’s charging preferences and behaviours and
developments in technology.

The payback period for the initial investment is relatively long – an estimated 6-9
years.

Exclusive agreements
Electric Highway has long-term exclusive agreements in place with 3 MSA
operators in the UK. Under these current arrangements, with the exception of Tesla,
only the Electric Highway can install, maintain and operate EV charging
equipment at these motorways.

As MSAs have agreed not to appoint any chargepoint operators other than the
Electric Highway at any of their main retail sites, limiting the ability to foster within
and between site competition at their sites.

The agreements cover around two-thirds of service stations and last between 10
to 15 years, with several years remaining until they end. Several competitors
expressed they would look to enter and compete at motorway services but are
prevented by these agreements.

‘There is also a ‘chicken and egg’ problem, where the commercial viability of EVs
depends on a widespread charging network being in place, but the case for building
that network is also dependent on the number of EVs on the road.’
CMA investigation report on The Electric Highway.
Why EV charging is important
At least 10 times the current number of charge points are needed by 2030 in
alignment with the UK’s climate goals. The UK has committed to reducing
greenhouse gas emissions by 28% by 2035 and moving to Net Zero by 2050.
Transport, in particular cars, is the largest source of emissions (accounting for 27%).
Transitioning from petrol and diesel cars to electric vehicles (EVs) is therefore key to
reducing emissions and meeting Net Zero. In addition, the UK Government has
committed to end the sale of new petrol and diesel cars/vans from 2030.

For this to happen, however, it is essential that there is a comprehensive and

competitive EV charging network in place, one that people can trust and they are
confident using – much like filling up with petrol or diesel. If this is not the case, and
the charging network is perceived as inadequate, or as not offering a fair deal to
people, that will be a major barrier to EV take-up.

Off the motorway in remote locations like rural areas or at tourist spots (where
connection costs are high but demand may be lower), the business case for
commercial investment in rapid en-route charging may be weak. This increases the
risk of ‘charging deserts’ emerging which could deter EV take-up, both for EV drivers
living in those areas and for those travelling to or through them.

Number of public charging points by speed 2016 to date (13 July 2021)