Govt to reduce RUCs for plug-in hybrids
Following complaints about its new road user charges (RUC) for pure electric vehicles and plug-in hybrids, the Government yesterday announced it will reduce the RUC rate on the latter vehicles from $53 per 1000km to $38 per 1000km.
Confirmation of the update from Transport Minister Simeon Brown comes after a mix-up amongst National Party members late last week, which saw the party vote in favour of the Labour Party opposition’s proposal to lower the rates for plug-in hybrids, instead of leaving the policy untouched as intended.
The error followed a truncated consultation period, with the select committee hearing from the likes of the Motor Industry Association, Tesla and the Motor Trade Association earlier this month. Both the MIA and Tesla argued in favour of a reduction in RUCs on plug-in vehicles.
After National’s accidental vote in favour of RUC reductions on PHEVs, Brown said the Government was open to discussing and retaining the change. Now, the change has been cemented. RUCs for pure electric vehicles will continue unchanged, at $76 per 1000km.
“Having a reduced RUC rate for PHEVs recognises that these vehicles use both petrol and have a battery to power the vehicle,” said Brown in a release issued yesterday.
“This change seeks to balance the need for these vehicles to fairly pay for the use of the road and the variable range of fuel efficiencies within PHEVs.”
MIA chief executive Aimee Wiley, leading an organisation that represents the majority of new-vehicle distributors in New Zealand, argued earlier this month that the Government should lower PHEV RUC rates from $53 per 1000km to $42 – a number that’s been eclipsed by National’s figures detailed yesterday.
“We are all concerned that the reality of the road user charges being applied to EVs from the 1st of April is not fair or equitable,” said Wiley in her submission to the select committee.
The initial $53 per 1000km figure on plug-in hybrids came under scrutiny, with concerns that the change would make plug-in hybrids more expensive to run than hybrid vehicles and some pure internal combustion engine petrol vehicles – despite being the more environmentally friendly and more petrol-frugal option.
Brown reiterated that the Government is still focused on introducing road user charges for all vehicles – including petrol and petrol hybrid models – in future. But, the minister stopped short of confirming a timeline.