Ofgem: Quarter of households plan to buy electric vehicle in next five years

Almost a quarter of households plan to buy an electric or plug-in hybrid vehicle in the next five years, but only one in seven have their sights set on installing low carbon heating in their homes, the findings of a major consumer energy user survey released today by Ofgem show.

More than 4,600 consumers across England, Scotland, and Wales were interviewed by pollster Ipsos MORI last year for the survey, which points to growing interest in electric vehicles (EVs) and their climate benefits, but far less understanding of the impact of domestic heating on greenhouse gas emissions.

The poll found 24 per cent of respondents said they planned to purchase an EV of plug-in hybrid car within the next five years, a proportion which would equate to 6.5 million households if the survey results are extrapolated across Britain's entire population, according to Ofgem, which commissioned the survey.

Those which already own an EV or hybrid were also more open to embracing changes in how they use their energy at home, the survey found, with over half - 60 per cent - stating they would consider using smart charging of the vehicle in order to avoid busier periods on the grid when power is more expensive.

However, with the government committed to phasing out sales of new petrol and diesel cars by 2030, and then also hybrid vehicles by 2035, the poll underscored ongoing challenges facing the EV rollout.

Over a third of respondents - 38 per cent - said they were unlikely to buy an EV in the next five years, with 59 per cent citing costly price tags, while 38 per cent raised concerns about short battery life and range anxiety, and 36 per cent worried about having nowhere to charge up their EV close to home.

Elsewhere, 74 per cent of respondents identified electricity generation and transport - such as fossil fuel power stations and exhaust emissions - as major contributors to emissions, yet only 60 per cent highlighted domestic heating such as gas boilers as adding significantly to the climate problem.

Jonathan Brearley, Ofgem's chief executive, said the energy regulator was working to enable significant investment in a more flexible energy system to support growth in demand for EVs, increase power generation from renewables, and accelerate the roll out of low carbon heat technologies.

Last year the regulator confirmed plans to invest £40bn in green grid projects over the next five years in a bid to deliver a "greener, fairer energy system" through its RIIO-2 price control settlement with grid operators. And, in January it called for the creation of a new independent body to oversee the UK's transition to a net zero electricity system, in a landmark move that would strip responsibility for balancing Britain's grid from National Grid amid conflict of interest concerns.

However, Brearley today warned that "securing investment is only half the answer", as he stressed the need to encourage consumers to switch towards greener forms of transport, heating, and energy.

"Climate change can only be tackled if consumers are engaged in the process," he said. "For this to happen the transition to a low carbon economy needs to be fair, inclusive, and affordable. Energy regulators have a key role to play in delivering this transition and we will be seeking to work with regulators across the world in the run up to the COP26 climate change talks to develop proposals that benefit consumers and the planet."

The poll results come just days after the Public Accounts Committee of MPs published a major new report accusing the government of failing to come forward with a comprehensive plan to deliver on the 2030 target date for ending the sale of internal combustion engine cars.