2020 Market Review - THE ROAD AHEAD - Petrol Retailers Association

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2020 Market Review - THE ROAD AHEAD - Petrol Retailers Association
Market Review
        2020

THE ROAD AHEAD
2020 Market Review - THE ROAD AHEAD - Petrol Retailers Association
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2020 Market Review - THE ROAD AHEAD - Petrol Retailers Association
Market Review
  HELP US TO HELP YOU, THE INDEPENDENT                         CONTENTS                                                            2020
   FORECOURT RETAILER, BY SUPPORTING                            REVIEW OF 2019                                                                         4
      YOUR TRADE ASSOCIATION NOW
                                                                 POLITICAL
          “Together we                                          WORKING FOR YOU                                                                       10
                                                                 MEMBERS
          are stronger”                                         THE PRA ON THE ROAD AGAIN                                                             18
                                                                ASSOCIATE MEMBERS                                                                     20
                                                                 TECHNICAL
                                                                RAY BLAKE ASKS: TO EV OR NOT TO EV?                                                   24
                                                                 CAR WASH
                                                                CAR WASH ASSOCIATION                                                                  28
                          BRIAN MADDERSON                       CAR WASH EUROPE                                                                       30
                          CHAIRMAN
                                                                 OIL MARKET OVERVIEW

M
           arket Review 2020 is the sixth issue of
                                                                MARKET BY NUMBERS FROM EXPERIAN CATALIST                                              34
           PRA’s annual publication with more pages
                                                                 ENERGY TRANSITION
           dedicated to the Car Wash Association’s
(CWA) affairs and even greater emphasis on our                  ALLEGO TALKS ELECTROMOBILITY                                                          38
role representing members’ interests with the                   ACCENTURE ON HOW THE FORECOURT IS GETTING PERSONAL                                    42
UK and Scottish Governments and the devolved                    TOTAL RETURNS TO THE UK WITH HARVEST ENERGY                                           46
assemblies.                                                      BUSINESS
    I am delighted that the publication continues
                                                                BUSINESS RATES UPDATE FROM MUA                                                        50
to generate so much interest and acts as a starting
                                                                CHRISTIE & CO’S PROPERTY VIEW                                                         52
point for developing discussion at our popular
“Business Breakouts” and Roadshows. Details of                  LEGAL UPDATE FROM MILS                                                                54
these important regional events, when we bring                   RETAIL
PRA/CWA and key suppliers to meet members, are                  FORECOURT TRADER OF THE YEAR                                                          60
to be found on our website www.ukpra.co.uk
    Throughout next year, we will be focusing on
alternative fuels – with electricity supply, charging
points, forecourt safety issues and hybrid/pure
                                                                Who’s who at the PRA
                                                                PRA MANAGEMENT TEAM                              Aziz Patel, The Brookfield Group
electric vehicles all commanding close attention.               Brian Madderson, Chairman                        Hemant Tandon, Park Garage Group
There will be ample time to meet suppliers and                  07768 608332 brian.madderson@rmif.co.uk          Mark Wilson, Fraser’s Retail
other retailers to discuss your views and concerns at           Gordon Balmer, Commercial Manager
our events.                                                     07771 834073 gordon.balmer@rmif.co.uk            PRA TECHNICAL COMMITTEE
                                                                Phil Monger, Technical Director                  Gordon Balmer, PRA
    Roadside retailing is definitely not an industry
                                                                07831 327990 phil.psac@gmail.com                 Matthew Bellamy, Certas Energy
sector on its knees, but one that is displaying                                                                  Ray Blake, PRA
                                                                Ray Blake, Technical Manager
renewed optimism and strength for the future as                 07496 967269 ray.blake@rmif.co.uk                Nicholas Brocklehurst, Westbridge Motors
you will see by reading the pages that follow, with             Steve Coombe, Membership Manager                 (Northampton) Ltd
thanks to all the contributors for their extremely              07831 373205 steve.coombe@rmif.co.uk             J Brownsey, Fordingbridge Garage
                                                                Alexander Russell, Director of Strategy 07881    Rodney Carter, Vapour Control Systems
valuable insights and to all advertisers for
                                                                502581 alexanderrussell068@gmail.comπ            Michael Garner, The Garner Group
supporting this publication so generously.                                                                       Gill Howkins, F Howkins and Son
                                                                PRA EXECUTIVE COMMITTEE                          Graham Lambert, St Michaels Garage Ltd
                                                                Brian Madderson, Chairman                        Andrew Lawrence, Lawrence Garages
                                                                Mike Garner, The Garner Group                    Ben Lawrence, Lawrence Garages
                                                                Ashley Kay, The Kay Group                        Emma McVie, Southern Co-operative
                                                                Sue Kembrey, Stanishawe Services                 Phil Monger, PRA
                                                                Graham Lambert, St Michaels Garage Ltd           Barry Onions, Petroassist
                                                                Andrew Lawrence, Lawrence Garages (London)       David Sommers, Hampshire Trading Standards
Cover image: Shutterstock                                                                                        Paul Suchodolski, Rontec

                                                                                            The Retail Motor Industry
                                                                                            Federation (RMI) is a leading
                                                                                            automotive trade body in the
                                       Publisher: Simon Lewis                               UK, representing franchised car
PRA MARKET REVIEW is published by      Editor: Tracy West                                   and commercial vehicle dealers;
Lewis Business Media Ltd,              Art Editor: Sarah Crowhurst                          independent garages; bodyshops; motorcycle dealers; petrol
Suite A, Arun House, Office Village,   Sales: Rachel Hallett                                retailers; auction houses and cherished number plate dealers;
River Way, Uckfield, TN22 1SL          Printed by: Stephens & George Print Group,           who provide sales and services to motorists and businesses
Tel: 01825 983105                      Goat Mill Road, Dowlais, Merthyr Tydfil, CF48 3TD    across the UK.
Fax: 01825 983108                      ©Lewis Business Media Ltd 2020                       201 Great Portland Street, London W1W 5AB
Email: kay@lewisbusinessmedia.co.uk    All rights reserved.                                 Tel: 020 7307 3598 • Fax: 020 7307 3406 • www.ukpra.co.uk

                                                                                                                                www.ukpra.co.uk       03
2020 Market Review - THE ROAD AHEAD - Petrol Retailers Association
REVIEW OF 2019
Market Review 2020

2019: LULL BEFORE THE                                                                                          after the Volkswagen ‘dieselgate’

(ELECTRIC) STORM?
                                                                                                               scandal. While there is no imminent UK
                                                                                                               ban planned for diesel cars, under the
                                                                                                               Government’s 2017 UK Air Quality plan,
PRA and CWA chairman Brian Madderson reviews the key                                                           the sale of both new diesel and petrol
                                                                                                               cars will be stopped by 2040
developments affecting our industry in 2019 and beyond
                                                                                                                  Consumers and fleet operators
                                                                                                               have been moving quickly to change

T
        he result of the General Election   businesses, plus investment in exciting                            from diesel, with new registrations
        in December returned Prime          new developments.                                                  falling by 22% year-on-year, and whilst
        Minister Boris Johnson with                                                                            petrol car sales have increased slightly,
a clear majority for the new-look           FUEL                                                               alternatively fuelled vehicles had record
Conservatives to deliver Brexit as          With so much emphasis by scientists                                sales in November 2019.
soon as possible. For business and          and environmentalists across the                                      The publication of Road to Zero by
the consumer, the prospect of greater       globe on the adverse impact of climate                             the Department for Transport proposes
economic certainty and growth in 2020       change on weather systems producing                                that by 2040 no internal combustion
is very welcome after three long years      exceptional rainfall and floods, heat                              engines (ICE) will be permitted in
of delay and procrastination – we wish      and droughts, ice melt and oceans                                  new cars and there are now pressures
everyone a successful New Year.             rising and accusatory fingers pointing                             to bring this date forward to 2035 or
   As we look back on 2019, the             at the oil industry, it really does feel like                      even 2030. Local authorities are being
roadside retailing sector has               the lull before the (electric?) storm. Not                         encouraged to introduce their own
outperformed almost all other retail        only that but air quality has become                               policies and Bristol is set to become
sectors such as high street shops,          a major issue at a local level with
hotels, restaurants, care homes
and pubs. Property asset values
                                            lawyers taking governments to task
                                            and winning High Court judgements               “Consumers and fleet
have increased, cashflow has been
strong and very steady on the back
                                            that impose timescales and stringent
                                            targets.
                                                                                            operators have been
of improving fuel and shop margins.
Recent meetings with banks have
                                               Diesel cars, especially older ones, are
                                            said to produce more nitrogen oxides
                                                                                            moving quickly to
confirmed their continuing appetite to
lend to our sector, which in turn has
                                            (NOx) than petrol cars. They have
                                            come under scrutiny over concerns
                                                                                            change from diesel”
ensured good demand for existing            about their emissions, especially

                                                                                                 EG’s Barton   the first city in the UK to ban diesel
                                                                                            Upon Humber site   vehicles in its city centre. There will also
                                                                                                               be a wider Clean Air Zone (CAZ) which
                                                                                                               commercial diesel vehicles, such as
                                                                                                               buses, vans and lorries, will be charged
                                                                                                               to enter, unless they meet emissions
                                                                                                               standards. These proposals need
                                                                                                               Government approval before coming
                                                                                                               into force in 2021
                                                                                                                  Drivers of more polluting cars
                                                                                                               including most diesels, have to pay
                                                                                                               a daily fee to drive in central London
                                                                                                               under the Ultra Low Emission Zone
                                                                                                               (ULEZ), which came into force in April
                                                                                                               2019 to help tackle dangerously high
                                                                                                               levels of air pollution in the capital. This
                                                                                                               was 17 months earlier than originally
                                                                                                               proposed. In October 2021, the zone
                                                                                                               will be expanded from the North
                                                                                                               Circular Road at the top and down to
                                                                                                               the South Circular.
                                                                                                                  Other cities across the UK are also
                                                                                                               taking action to improve air quality and
                                                                                                               reduce pollution. These include:
                                                                                                                     Aberdeen, Dundee, Edinburgh and
                                                                                                               Glasgow: The Scottish Government has
                                                                                                               promised low emission zones for each ▹

04    www.ukpra.co.uk
2020 Market Review - THE ROAD AHEAD - Petrol Retailers Association
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2020 Market Review - THE ROAD AHEAD - Petrol Retailers Association
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2020 Market Review - THE ROAD AHEAD - Petrol Retailers Association
REVIEW OF 2019
                                                                                                                              Market Review 2020

                                                                                                                   and are committed to further rapid
                                                                                                                   expansion. Not only are the ‘big four’
                                                                                                                   supermarkets being hit by this external
                                                                                                                   competition, they are being adversely
                                                                                                                   affected by cannibalism: losing high
                                                                                                                   margin main store sales to their
                                                                                                                   fast-growing own brand convenience
                                                                                                                   stores: eg. Tesco Express and Metro,
                                                                                                                   Morrisons Daily and Sainsbury’s
                                                                                                                   Local and also increasingly to online
                                                                                                                   shopping where the eye-watering
                                                                                                                   labour costs of picking, packing and
                                                                                                                   delivery virtually eliminate previous
                                                                                                                   margin levels. This has forced the ‘big
                                                                                                                   four’ to take more margin from fuel so
                                                                                                                   closing the price gap on other players
▹ of these cities between 2018 and 2020.
        Bath: the city is proposing to      “It’s a sign of confidence                                             in the retail fuel market to the latter’s
                                                                                                                   advantage.
  charge higher emission vehicles to
  drive in the city centre by the end of
                                            that dealers are eager to                                                 After the lull in net closures in 2018,
                                                                                                                   in 2019 there was another lull as site
  2020, at a cost of £9 per day.
        Birmingham: One of five cities
                                            invest in NTI sites”                                                   numbers continued to remain stable
                                                                                                                   with only nine net losses to date: 63
  required by the government to                                                                                    closures, generally smaller dealer sites,
  introduce a Clean Air Zone by 2020, it                                                                           offset by 35 new-to-industry (NTI) and
  has already outlined plans for cars and                                                                          19 return-to-industry (RTI).
  taxis to pay £8 per day.                                                                                            It is a sign of market confidence
        Derby: Has been told to set up                                                                             that dealers and others are eager
  a Clean Air Zone, but it has not yet                                                                             to invest £2m-£5m (non-motorway
  provided detailed plans.                                                                                         service areas) in NTI sites with good
        Leeds: A Clean Air Zone covering                                                                           convenience shop brands and food-
  more than half of the city will be                                                                               to-go as demonstrated by openings
  introduced from January 6, 2020.                                                                                 from Euro Garages. And the family
  Charges will only apply for the worst                                                                            owned Kay Group. As well as many
  polluting HGVs, buses, coaches, taxis                                                                            Knock Downs and Re-Builds (KDRB)
  and private hire vehicles.                                                                                       undertaken.
        Nottingham: Has reportedly                                                                                    Over and above the standard petrol/
  ditched plans to introduce a Clean Air    mileage from light and heavy goods        Top: EG Burnley              diesel/auto lpg forecourts, there are
                                                                                      Barracks Services
  Zone after modelling showed it could      vehicles, indicating a dip in economic    Above: The Kay
                                                                                                                   also ‘Non-Retail’ sites – sites which
  reduce air pollution to below the legal   activity.                                 Group’s Ruabon site          offer fuelling but do not usually retail
  limit within two years.                                                                                          to the general public. This ‘Non-
        Oxford: Is proposing to introduce   FORECOURTS                                                             Retail’ category is primarily Truck Stop
  the world’s first Zero Emission Zone.     The trend decline in forecourt numbers                                 locations (like the ones Certas has been
  Both diesel and petrol vehicles would     was around 300 to 400 each year                                        opening around the UK) but it also         ▹
  be banned from the city centre in         through the 1980s and 1990s as the big
                                                                                       A lull in closures = a net loss of 9 sites
  phases, starting in 2020.                 four supermarkets vied with each other
                                                                                       New-to-industry sites: +34
        Sheffield: Has proposed charges     for new out-of-town store openings.
  for the most polluting vehicles using     These would have a filling station on      Company: +4 (BP 1; Texaco 1; 2 Gulf Automat 2)
  the inner ring road. Buses, coaches and   the periphery and with average volumes     Hypermarket: +10 (Automats 8; Asda 2; Costco 3; Tesco
  HGVs would pay £50 a day, taxis and       soon reaching 10ml/y any small dealer      3; Morrisons 1 relocated; Sainsbury’s 1)
  minicabs £12.50, and vans and LGVs        pumping less than 2ml/y within a few       Dealer: +20 (EG 7; Kay 2; MFG 3; NI 4)
  £10.                                      miles was priced out of the market.        Return-to-industry sites: +20
        Southampton: Set to submit          Hence numbers plummeted from
                                                                                       Company: +8 (Gulf Automat 3; BP 1; Harvest 1;
  plans to the Government at the end of     14,000 in 1990 to the present 8,385        Applegreen 1)
  January.                                     The emergence of German discount
                                                                                       Hypermarket: +1 (Co-op 1)
     Unsurprisingly, demand for road        chains, Aldi and Lidl, abruptly stopped
  fuels, excluding biofuels, fell by (3%)   the UK multi-nationals’ space race         Dealer: +11 (EG 1;Falcon 1; James Hall 1)
  in Q2/19 which was the largest overall    as they began to lose both volume          Closures: +63
  reduction since Q1/13. Diesel dropped     and margin to the newcomers. These
                                                                                       Dealer: 63
  by 4%, a reduction not seen since 2009    super-efficient and competitive
                                                                                       Source: Experian Catalist
  and was partly caused by the lower        discounters now have over 1,400 stores

                                                                                                                               www.ukpra.co.uk         07
2020 Market Review - THE ROAD AHEAD - Petrol Retailers Association
REVIEW OF 2019
  Market Review 2020

▹ covers hydrogen and CNG/LNG. So for                                    acquiring sites.                          and now has 37 sites
  the ‘alternative fuels’ locations we have                                 The loss of these sites was offset           MPK Garages has been boosted
  some noted on standard retail sites                                    by purchases of high quality dealer       by acquisition from Australian private
  – like hydrogen at M25 Shell Cobham                                    groups: Simon Smith and Symonds           equity fund Stratford Capital, with
  Services but others on Non-Retail                                      Forecourts plus some NTI openings to      Nerissa Haskic supporting long-term
  locations like CNG/LNG at M6 Poplar                                    keep numbers above 900.                   CEO Paul Kershaw. Already over 30
  2000.                                                                     Early last year, Sainsbury’s was       sites with many moving to Morrisons
                                                                         advised by its legal team that a bid      Daily-branded convenience stores.
                                                                         (merger) with isolated Asda – Walmart           Platinum Retail, led by the
    UK V3 2019                All UK    Retail           Non-            apparently keen to exit Europe – would    indefatigable Sej Sejpal, continues to
                                        Sites            Retail
                                                                         be approved by the CMA Clearly,           expertly pick up singletons and small
    Petrol/Diesel             8,568     8,385              183           they had not reckoned with new and        groups with over 32 sites now in his
                                                                         ambitious chairman, ex-MP Andrew          portfolio.
    Hydrogen                   18         3                 15           Tyrie.                                       Harvest Energy has recently acquired
    CNG/LNG                    24         7                 17              After expenditure of millions of       by licence the TOTAL brand for the
                                                                         pounds on advice from City lawyers        UK market with the first site launched
    Auto LPG                   786       781                5            and bankers, Sainsbury’s bid was          in Thirsk. A recent poll by Forecourt
                                                                         comprehensively rejected. Thus,           Trader magazine confirmed that 67% of
    Red Diesel                 496       478                18
                                                                         the spectre of not one but two            readers were pleased to see the return
  Source: Experian Catalist                                              supermarkets pricing fuel at or below     of this once important retail brand for
                                                                         cost did not materialise.                 the UK market. How many sites will
   OWNERSHIP                                                                Other dealer groups to forge ahead     convert and over what timespan?
   The market anticipated that MRH                                       in 2019 included:
   Retail, the largest dealer group at the                                    Harvest Energy (retail trading arm   LOYALTY SCHEMES
   end of 2018, would complete an IPO                                    of Prax Petroleum) acquired 63-site       There was certainly no lull in this
   on the London stock exchange during                                   HKS, which, together with existing        keenly fought customer incentive. BP’s
   Q1. US private equity fund, Lone Star,                                operations including branded fuel         long-term arrangement with Nectar
   tested prospects and presumably was                                   supply, gave them over 160 sites          was discontinued and the company
   not encouraged – look how Aston                                            Applegreen continues to expand       introduced its own loyalty scheme,
   Martin had a stellar launch only for the                              in Northern Ireland and mainland UK       BPme.
   shares to “bomb” through the year.                                    with over 130 sites and unexpectedly         Nectar signed up with Esso and
      Instead MRH was sold to rival dealer                               acquired Welcome Break with 38            dealers were relieved that costs were
   group, MFG, owned by another US                                       forecourt/shopping MSA complexes          charged on issuance not on fuel
   private equity fund, Clayton Dubillier                                     Penny Petroleum led by colourful     deliveries. To date, issuance rates and
   Rice. This made the latter a tour de                                  ex-BP Retail expert Dave Penny, with      acceptability have been good.
   force in the market, leading to an                                    close to 60 sites                            Meantime, Shell completely
   Inquiry by the Competition & Markets                                       Ascona led by industry veteran,      overhauled its internal scheme and
   Authority (CMA).                                                      Darren Briggs, completed the purchase     relaunched as Shell Go+ with easy-
      The acquisition was approved                                       of the 17-site Cornwall Garage group      to-use-and-redeem features which
   subject to MFG disposing of some              Below: Welcome                                                    appears welcomed by both retailers and
   38 sites where competition might be           Break Hopwood                                                     motorists alike.
                                                 Park, on the
   reduced.                                      M42, now part of
      Most of these sites were sold to an        Applegreen after last                                             THE FUTURE
                                                 year’s unexpected
   emergent Graham Peacock (ex-MRH               acquisition                                                       My view is that government and
   shareholder and CEO) through trading                                                                            industry need to provide much greater
   operation SGN, which was already                                                                                financial and operational leadership
                                                                                                                   if clean air and climate change
                                                                                                                   improvements are to meet their
                                                                                                                   ambitious time horizons – not least by
                                                                                                                   being TECHNOLOGY NEUTRAL. So
                                                                                                                   less one-eyed focus on “electricifation”
                                                                                                                   and more two-eyed on all other fuel
                                                                                                                   developments including GtL, CNG,
                                                                                                                   LNG, hydrogen and even synthetic
                                                                                                                   fuels.
                                                                                                                       Being a pragmatist, I can see fossil
                                                                                                                   fuel-powered vehicles on our roads for
                                                                                                                   many years to come, which is why the
                                                                                                                   conventional forecourt is not a 21st
                                                                                                                   century dinosaur!!

 08      www.ukpra.co.uk
2020 Market Review - THE ROAD AHEAD - Petrol Retailers Association
2020 Market Review - THE ROAD AHEAD - Petrol Retailers Association
POLITICAL
Market Review 2020

WORKING
FOR YOU
PRA has established strong working relationships in
Parliament and across Government to make sure that its
members’ interests are represented when policy is made

B
        REXIT                              such as security of supply, contingency    diesel vehicles from the roads by 2040.
        2020 promises to be the year of    planning and immigration. The PRA has      The PRA has begun talks with officials
        Brexit with a deal. We support     periodically published updates on Brexit   in the Treasury as to how they might
the transitional arrangements which        in Petrol Heads-Up.                        replace the £28 billion that is currently
have been made so that our members                                                    raised in fuel duty, plus the £7bn in VAT
can continue to import fuel and food       REDUCING FUEL DUTY RELIANCE                that would be lost in the changeover to
supplies from the EU without border        For the past nine years, fuel duty has     electric vehicles. We have warned the
checks. Longer term, we look forward       been frozen at 57.95p per litre for both   Treasury that if they were to attempt to
to the UK striking free trade deals with   petrol and diesel. Keeping it frozen       increase the tax take from fuel duty in
the EU and third countries, which could    at this level should help maintain the     the coming decade, it would become all
apply from 2021.                           stability of the UK economy at a time of   the harder to replace the lost revenue in
   The PRA is participating in the Oil     political change. We will be urging the    the decade when alternative fuel vehicles
and Gas EU Exit Sector panel. This         Chancellor of the Exchequer to ensure      (AFV) displace petrol and diesel.
is facilitated by BEIS (Department         that UK duties and pump prices are
for Business, Energy and Industrial        competitive with those of EU countries.    ROAD PRICING
Strategy) and offers an opportunity to        The UK Government has set itself        Following representations from the PRA,
voice members’ concerns about issues       on a path to removing all petrol and       the Department for Transport (DfT)      ▹

10    www.ukpra.co.uk
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POLITICAL
  Market Review 2020

                                                                      Oil Industries Forum (DOIF) and among        will be issued early in 2020. Following
                                                                      other subjects discussed has been the        receipt of replies to the document, we
                                                                      issue of IMO 2020. IMO 2020 is the           understand that E10 will be introduced
                                                                      International Maritime Organization’s        some time in 2021 and the PRA’s stance
                                                                      directive to world shipping operators        remains that the introduction needs
                                                                      to run their ships on low sulphur fuel       to be “mandated” by Government
                                                                      oil. Currently ships run on 3.5% heavy       as opposed to a commercially led
                                                                      fuel oil and from January 1, 2020 ships      introduction. Mandating not only
                                                                      have been required to install scrubbing      ensures there is universal and
                                                                      systems into their exhaust systems           simultaneous adoption but also means
                                                                      or run on 0.5% sulphur fuel oil. This        that filling stations can use the same
                                                                      change will add to the cost of shipping.     infrastructure that is currently being
                                                                      However, it may also impact the cost of      used for premium grade E5 petrol.
                                                                      petrol and diesel. During the last year we
                                                                      have kept members informed as to how         BUSINESS RATES/ATMS
                                                                      this is developing. Watch out for further    In February 2019, the PRA submitted
                                              Above: PRA is
▹ has indicated that it will be launching a   working alongside       updates in Petrol Heads-Up. We have          evidence to the Treasury Select
  consultation on road pricing in 2020.       the ATM International   published documents on this in the           Committee on the impact of business
                                              Association to lobby
  We will be examining the issues carefully   on ATM business         Members’ Section of the website.             rates on the independent forecourt
  and consulting members on their views.      rates                      We have also been engaging with the       sector. In the March 2019 Budget, the
  The attraction of road pricing from the     Below: PRA has          DfT on the introduction of E10 petrol.       Government announced a retail relief
  Treasury’s point of view is that it would   called for the          During the year our technical director,      scheme on business rates for 2019/20
                                              introduction of E10
  enable government revenues from the         to be mandated by       Phil Monger, led a party of members          and 2020/21 in England and Wales. PRA
  road transport sector to be maintained.     government              who visited the DfT to discuss this          was quick to obtain clarification from
  Fuel duties paid at the pump could be                               issue. We now expect that a consultation     Treasury officials that the scheme would
  replaced with revenue from use of the                               document on the introduction of E10          apply to PFS with a rateable value of
  roads.                                                                                                           less than £50k. These would be eligible
     Government bodies oversee a
  range of different incentive schemes        “Mandating E10 means                                                 for a one-third discount against actual
                                                                                                                   payments (subject to EU de minimis
  in place for alternative fuels. PRA
  will be encouraging the Government
                                              means that filling                                                   rules).
                                                                                                                      Following further lobbying by PRA,
  to recognise the willingness of the
  operators of existing station (PFS)
                                              stations can use the                                                 the Government has recently announced
                                                                                                                   that the retail relief scheme for 2020/21
  premises and infrastructure to embrace
  alternative fuels, and to ensure
                                              same infrastructure”                                                 would have an increased RV threshold
                                                                                                                   of £51K and an increased discount of
  appropriate incentives are put in place                                                                          50%. This will bring additional financial
  to adapt them for the vehicle fleets of                                                                          benefit to many of our members.
  the future.                                                                                                         The 2021 Revaluation will continue to
                                                                                                                   be based on market rental values at April
  FUEL DEVELOPMENTS                                                                                                1, 2019. All but the largest new shop
  The Renewable Transport Fuel                                                                                     developments will see a small increase
  Obligation (RTFO) is the Government’s                                                                            in rates, following a formula now agreed
  flagship policy to reduce greenhouse                                                                             with the VOA.
  gas emissions. This is facilitated by the                                                                           PRA is also working with the ATM
  blending of biofuels into petrol and                                                                             International Association (ATMIA)
  diesel to reduce harmful emissions. Fuel                                                                         to make appropriate representations
  suppliers who qualify to join the scheme                                                                         following the loss of a court case by
  receive tickets to enable them to comply                                                                         the VOA, which was attempting to
  with the RTFO.                                                                                                   levy separate business rates on third
     During 2019, the PRA has engaged                                                                              party through-the-wall cash machines
  with the Low Carbon Fuels Regulation                                                                             (TTWATM) and standalone booths
  department within the DfT. The aim of                                                                            installed at PFS.
  these meetings was to seek clarification                                                                            The case is due to be heard by the
  around the scheme, its success and                                                                               Supreme Court in March 2020 with
  future developments. Full details of the                                                                         a judgement in the summer. Should
  scheme are contained in the Members’                                                                             the VOA lose again, there will be rates
  Section of the PRA’s website under                                                                               refunds backdated to April 2010 for
  “Representing your interests: Fuels                                                                              some filling station owners, depending
  policy”.                                                                                                         on the agreement they have in place with
     The PRA also sits on the Downstream                                                                           ATM suppliers.                            ▹

  12    www.ukpra.co.uk
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POLITICAL
  Market Review 2020

▹ FORECOURT CRIME                                                                                                    the future, and the PRA will be tracking
  PRA representatives have met in recent
  months with two Home Office ministers
                                               “PRA will be talking to                                               its take-up in other EU countries such
                                                                                                                     as Germany, as well as voicing the retail
  to discuss the weak response of some         the Government about                                                  fuel industry’s willingness to embrace
  police forces in England and Wales to                                                                              this technology in the UK.
  no-means-of-payment fuel losses as           how to incentivise and                                                   Looking ahead, the Government
  well as criminal drive-offs. They have                                                                             is going to come under increasing
  put their weight behind PRA’s call for       reward PFS which                                                      pressure to take a more neutral stance
  all crimes to be properly investigated,
  and a new Crime Strategy Unit has been
                                               provide alternative fuel                                              between zero carbon technologies.
                                                                                                                     Its heavy-handed discouragement of
  formed in the Home Office to tackle the
  issue.
                                               infrastructure”                                                       modern diesel cars – despite their
                                                                                                                     reduced carbon emissions compared to
     A meeting between Brian Madderson                                                                               unleaded – has been environmentally
  and the national police lead for retail      Pictured above: While   We will also be raising the safety            damaging.
  crime, chief constable Simon Cole,           PHEV and BEV cars       concerns that come into play with the            The Government has neither the
                                               make up 5% of the
  resulted in the acknowledgement that         UK car parc, some       installation of electric charging capacity    technical expertise nor the market
  the solution to fuel theft does not lie      1.8 million internal    of 50kws and above.                           knowledge to sit in judgement, and it is
                                               combustion engine
  with pre-pay but with prosecuting            cars were sold in          The PRA has been critical of the           not best placed to pick winners in the
  thieves to deter others. PRA is also         2019                    Government’s stance in the Road to            race to provide zero carbon methods of
  working more closely with the National                               Zero document, in so much that there          road transport. PRA opposes knee-jerk
  Business Crime Centre and the DVLA to                                should be an agnostic approach to             responses such as the outright banning
  tackle this issue.                                                   alternative fuels. However, there appears     of clean diesel vehicles in Bristol city
                                                                       to be an over-reliance on electric vehicles   centre.
  ALTERNATIVE FUEL VEHICLES                                            to meet emissions targets.                       This has all the hallmarks of
  Plug-in hybrids (PHEV) and battery-only                                 Unlike electric vehicle charging,          political posturing, while making little
  vehicles (BEV) now make up 5% of the                                 hydrogen-powered drivers can refuel           environmental sense and undermining
  UK car parc. However, there were 1.8m                                their vehicles in three to five minutes;      the central Bristol business of several of
  more new internal combustion engine                                  and the technology can be swapped into        our members.
  (ICE) vehicles and less than 0.2m                                    existing PFS more easily than electric
  alternative fuel cars sold in 2019. Siting                           charging infrastructure. Germany              ENERGY RESILIENCE
  charging points is going to be a huge                                already has 76 public hydrogen stations,      The PRA sits on the Downstream
  challenge for PFS, and the PRA will be                               which are usually integrated into existing    Oil Industries Forum where we have
  talking to the Government about how                                  service stations, and the UK is falling       discussed the National Emergency Plan
  to incentivise and reward PFS which                                  behind. Hydrogen may ultimately prove         for Fuel.
  provide alternative fuel infrastructure.                             to be a more reliable zero carbon fuel of        This plan would be enacted by the         ▹

  14    www.ukpra.co.uk
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POLITICAL
   Market Review 2020

▹ Government during a time of national                    members if their sites are designated            Designated sites should receive an
  emergency.                                              sites which will need to be kept wet if the   annual visit by their Local Resilience
    The PRA has advised on the                            plan is enacted. The PRA also has input       Forum (LFR), which is responsible
  Designated Filling Station (DFS)                        into the process on who is able to access     for informing site managers of their
  network and communicated to                             fuel and how the fuel will be dispensed.      obligations as DFS.

     CAR WASH ASSOCIATION

      The days of
                                                                                                confirmation that these letters have
      the rogue hand                                                                            been sent.
      car wash are
      numbered
                                                                                                  We continue to engage with both
                                                                                                national and local offices as we feel
                                                                                                that more proactive enforcement
                                                                                                of existing permit requirements for
                                                                                                disposal of trade (toxic) effluent will
                                                                                                help close down the worst offending
                                                                                                HCWs.

                                                                                                  HM REVENUE & CUSTOMS
                                                                                                INVESTIGATIONS
                                                                                                Over the past two years CWA has
                                                                                                been in frequent meetings and
                                                                                                correspondence with officials
                                                                                                in HMRC – both in London and
                                                                                                regional offices – to try to persuade
                                                                                                them to take on the gangmasters
                                                                                                who are running rogue hand car
                                                                                                wash operations across the country.

     A
            fter an 18-month hiatus,          David Metcalf, director of labour                 Despite the activities described in
            Dame Sara Thornton DBE,           market enforcement (OLME) in three                Sections 7 & 8 of the EAC Report, the
            former National Police            Midlands postcodes have now been                  number or modus operandi of the
     Chief Council’s lead, has been           undertaken.                                       gangmaster-style HCW operations
     appointed Independent Anti-Slavery                                                         has yet to see substantive reduction.
     Commissioner (IASC). The Car               ENVIRONMENT AUDIT                                 However, under pressure to
     Wash Association, a wholly owned         COMMITTEE (EAC)                                   conduct more investigations,
     subsidiary of the PRA, has been          After a formal Inquiry initiated by               HMRC has started to direct more
     working with the IASC on their           Mary Creagh MP, which involved                    investigations towards established
     Strategy Plan 2019/20 and with other     public hearings in June 2018 at which             (Registered company) automated
     stakeholders and organisations           PRA provided expert testimony,                    car washes which should be fully
     combating modern slavery, including      the findings were published in                    compliant and far fewer towards
     the Police Crime Prevention Initiative   November 2018 as Hand Car                         the gangmaster HCWs which often
     (PCPI) and The Clewer Initiative.        Washes: Tenth Report of Sessions                  harbour criminal activities.
       The PRA has brought together           2017-19. The report was rightly critical            This results from officials being
     Accenture with The Clewer Initiative     of many Government agencies                       unable to engage with criminal
     to undertake a major relaunch of         and departments listing a series of               elements because they do not have
     the Safe Car Wash App in 2020.           constructive recommendations.                     sufficient police back-up for their
     One of the objectives is to provide        The formal Government                           investigations and operations.
     the app user with details of nearby      response was issued in February                     We are continuing to engage with
     Responsible Car Wash Scheme              2019 and virtually ignored all                    HMRC officials and we are confident
     (RCWS)-compliant car washes so           recommendations with the exception                that more illicit operations will be
     giving an alternative to the rogue       of updating the Pollution Prevention              targeted and caught in the year
     hand car wash (HCW).                     Guidance but without the level of                 ahead.
                                              detail provided in GPP13: Vehicle
       THE RESPONSIBLE CAR WASH               washing & cleaning, which is used in
     SCHEME (RCWS)                            Scotland and Northern Ireland.
     The Responsible Car Wash Scheme            The response also agreed to write
     was jointly launched by Downstream       to supermarkets reminding them
     Fuel Association (DFA) and CWA           of their environmental and other
     in 2018. Trials recommended by Sir       responsibilities. PRA is pressing for

   16   www.ukpra.co.uk
EVENTS
Market Review 2020

                                                                                       Brian
                                                                                       Madderson
                                                                                       speaking at The      To help you run your business better
                                                                                       Forecourt Show
                                                                                                         we also select companies to come and
                                                                                                         present at our gatherings. Many of
                                                                                                         these presenters do offer something
                                                                                                         new in terms of new technology and
                                                                                                         as the events also involve free coffee
                                                                                                         and a buffet lunch there is also an
                                                                                                         opportunity to chat to the presenters.
                                                                                                            This year we are very grateful to
                                                                                                         the following organisations that have
                                                                                                         presented:
                                                                                                              Allego
                                                                                                              CBE
                                                                                                              Certas Energy
                                                                                                              Christie and Co
                                                                                                              EdgePetrol
                                                                                                              GripHero
                                                                                                              Henderson Technology
                                                                                                              Jackaman Insurance Services
                                                                                                              LCM
                                                                                                              Petroassist UK
                                                                                                              Suresite Group

THE PRA ON THE
                                                                                                              Winckworth Sherwood LLP
                                                                                                            The meetings also provide a good
                                                                                                         opportunity for you to query any

ROAD AGAIN
                                                                                                         “technical” issues that you may have,
                                                                                                         as we always have either Ray Blake or
                                                                                                         Phil Monger from our technical team
                                                                                                         on hand for you to chat to.
The PRA team travels                    you managed to attend one of these                                  We were also present at the NEC
across the UK to                        events. We have enjoyed hosting                                  in 2019 at the Forecourt Show and
                                        these events at hotels, arenas, sports                           National Convenience Show. This
engage with its                         stadiums, conference centres and                                 was a well-attended event in terms
members                                 racecourses.                                                     of exhibitors including many of the
                                           Members who attended the                                      major oil companies and visitors. At

O
          nce again, in 2019, the PRA   meetings have said that they are                                 the shows, visitors had the opportunity
          used planes, trains and       glad they attended and that they                                 to meet us on our stand or listen to
          automobiles to travel all     learnt something. We always try to                               Brian as he presented on the panel
over the UK to meet with members        offer new presenters from external
at its popular Business Breakouts       companies and, as highlighted in Brian
and Roadshows, in partnership with      Madderson’s Review of the Year (pages         “The meetings also
Thames Communications.
   Our travels took us to Exeter
                                        4-8), there is certainly a lot going on for
                                        us to update you on. The meetings also        provide an opportunity
(twice), Chatham, Knutsford, Belfast,
Birmingham, Larkhall, Durham,
                                        offer an opportunity to learn about and
                                        question industry issues and to raise
                                                                                      for you to query any
Newmarket, Shrewsbury, Inverness,
Swansea and Wakefield. We hope that
                                        any important matters you would like
                                        assistance with.
                                                                                      “technical” issues”
 Delegates at one                                                                                        discussing the future of mobility.
 of our Business                                                                                            In 2020 we will be putting on a
 Breakouts
                                                                                                         similar number of events right across
                                                                                                         the UK. Our spring programme is
                                                                                                         confirmed with events booked at
                                                                                                         Exeter, Brands Hatch, Knutsford,
                                                                                                         Belfast, Nottingham and Larkhall. The
                                                                                                         autumn programme will be confirmed
                                                                                                         shortly with the details posted on our
                                                                                                         website www.ukpra.co.uk/en/events or
                                                                                                         watch out for your personal invitation
                                                                                                         in your inbox.

18   www.ukpra.co.uk
ASSOCIATE
 MEMBERS
  It’s vital that PRA members are provided with the best products and
  services to help them run their businesses as efficiently as possible.                                  ASSOCIATE
  The PRA has strong links with the following Associate Members                                          MEMBERS
  who provide excellent products and services to our industry:

ACCENTURE                                                     FORECOURT EYE
Accenture is a leading professional services company          Forecourt Eye has developed a viable and proven
with capabilities in strategy, consulting, digital,           solution that delivers high ‘loss recovery’ results
technology and operations. Leveraging its deep                and bottom line savings to forecourt operators. In
expertise across industries and business functions, it        addition, it helps with crime reduction making sites
helps organisations shape their vision for the future.        safer for both employees and customers.
ALLEGO                                                        FRANCHISEE FIRST
Allego is one of the leading providers of charging            Franchisee First is an innovative provider of fuel
solutions and EV cloud services in Europe. Its                bonds, as a simple, cost-effective means of meeting a
pan-European network of almost 10,000 charge                  dealer’s financial security obligation to their wet stock
points offers a seamless network across Europe. It            suppliers. Fuel bonds are provided on an unsecured
is experienced in the forecourt industry, supporting          basis by Hiscox and, as such, dealers are free to
clients such as Shell and TOTAL to achieve their EV           utilise their freed-up cash as they see fit.
ambitions.
                                                              GRIPHERO
APG CASH DRAWER                                               GripHero is coming to revolutionise forecourt hand
APG Cash Drawer is a global manufacturer of cash              protection with the most effortless, easy-to-use and
management solutions, serving a variety of customers          convenient way possible for keeping hands clean at
and industries. APG has built a reputation as the             the pumps – dispensing recyclable hand-protection
supplier of choice for cash management solutions              directly from the nozzle.
in retail, grocery, convenience, hospitality and quick
serve around the world.                                       HENDERSON TECHNOLOGY
                                                              Developed for the convenience and fuel forecourt
CBE                                                           market by Henderson Technology, EDGEPoS is one
CBE is recognised as one of the leading innovators            of the only worldwide epos systems that has been
within the UK epos market. For more than three                designed by retailers, for retailers. It offers a fully
decades, it has been providing innovative software            scalable, real-time solution supporting businesses
solutions to a wide range of retailers throughout the         from one to 100 lanes.
country. A key factor in its success is its focus on the
technological development of epos software. It has a          JACKAMAN INSURANCE SERVICES
dedicated research and development centre, staffed            Jackaman Insurance Services provides insurance
by expert engineers, and is proud to spearhead new            solutions for an entire spectrum of commercial
technological developments which go on to become              clients. The company has expertise in dealing with the
the industry standard.                                        petrol retail industry and has bespoke contracts which
                                                              have been developed for PRA members.
CHRISTIE & CO
Christie & Co is the leading specialist advisor for           THE EV NETWORK
buying and selling businesses in convenience                  Founded in 2017, The EV Network was formed as a
retail and petrol filling stations. It is at the forefront    dedicated EV charging infrastructure development
of the sector, with years of experience identifying           company to address the challenges faced by both
and managing local, and often special, purchases in           site hosts and chargepoint operators in rolling out
granular detail. It has the largest team of specialist        a network of EV charging infrastructure across the
retail agents dedicated to the sector, with retail            UK. The EV Network is able to provide its partners
expertise available in each and every one of the              with fully funded bespoke technology and service
company’s 15 UK offices.                                      solutions.

EDGEPETROL                                                    WINCKWORTH SHERWOOD
EdgePetrol is helping retailers throughout the UK             A full-service law firm with a diverse client base,
and Europe transform how they run their businesses.           Winckworth Sherwood prides itself on providing
EdgePetrol gives dealers real-time access to their key        market-leading advice across a broad range of sectors
metrics all in one place, allowing them to make informed      and markets. Clients include national supermarkets
decisions around volumes, margins, pricing and                and convenience store operators, oil companies and
procurement to enhance the profitability of their business.   several of Forecourt Trader’s Top 50 Independent
                                                              forecourt retailers.

20   www.ukpra.co.uk
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TECHNICAL
Market Review 2020

TO EV OR NOT                                                                                      whether or not to embrace electric
                                                                                                  vehicle (EV) charging. When that will

TO EV?
                                                                                                  be is dependent upon a vast range of
                                                                                                  factors. Some forecourt operators are
                                                                                                  being proactive and either already have
                                                                                                  EV charging or are planning to have
                                                                                                  it installed in the near future. Others
                                                                                                  are happy with their current business
The PRA’s technical manager Ray Blake                                                             model and are waiting to react when
                                                                                                  the time is right.
contemplates the adoption of electric vehicles
                                                                                                  THE FUTURE OF HYDROCARBONS

I
   t is the question that spends a great       My intention is to wait for at least               Whenever I am in the company of
   deal of time bouncing around in          another year and then most likely                     anyone linked to the petrol forecourt
   my head. My personal perspective         invest in a hybrid car. Fortunately, we               industry, the future of forecourts
is that, along with the hundreds of         have off-street parking and can easily                supplying hydrocarbon fuels soon
thousands of people that aren’t buying      have an electric vehicle charging point               becomes the topic of conversation.
or leasing a new car, that would have       installed which, with the right hybrid
done had the decision not become
complicated by the transition to low or
                                            car, should give me somewhere around
                                            60 miles on the batteries before the
                                                                                         “My intention is to wait
zero emission vehicles, I am waiting
to see which propulsion system will
                                            internal combustion engine is needed.
                                            Plus, for at least a few years, it will be
                                                                                         for at least another year
best suit my needs and be the most
economic over the next few years.
                                            ULEZ charge exempt.
                                               This question will be asked millions
                                                                                         and then most likely
   I live within the suburbs of London,     of times in households across the UK.        invest in a hybrid car”
my wife and I have diesel cars. I drive     The outcome of these decisions will
around 12,000 miles per year, of which      impact on the sales of hydrocarbon                        Although my expertise is centred on
75% is on long journeys around the          vehicle fuels and hence the business                  the safe operation of petrol forecourts
UK. However, we both use our cars to        models of petrol forecourt operators.                 and not their financial viability, I will
visit our daughter who lives less than         The Government is pushing its                      pass on the predictions and plans for
15 miles away within the Ultra-Low          policies and ambitions for low and                    the future of a range of different types
Emission Zone (ULEZ) that is being          zero emission vehicles, and the car                   of petrol forecourt from conversations
introduced from October 2021. From          manufacturers are scaling down the                    I have had, and that I believe to be
then on, to visit her using either of our   production of internal combustion                     rational and realistic. They are all
cars, or to go anywhere else within the     engine vehicles and ramping up the                    dependent upon the location of the
south or north circular roads will cost     production of hybrid and battery                      site and the demographic of their
us – at the current rate – £12.50 each      electric vehicles. At some point, petrol              customers.
time.                                       forecourt operators will have to decide                   Firstly, I know that there are already
                                                                                                  plans for some city centre petrol
                                                                                                  filling stations to have their liquid
                                                                                                  fuel infrastructure replaced with EV
                                                                                                  charging points. Eventually, only zero
                                                                                                  emission vehicles will be permitted in
                                                                                                  city centres and as there are very few
                                                                                                  homes in cities that can accommodate
                                                                                                  off-street charging, the demand will be
                                                                                                  for EV charging.
                                                                                                      Secondly, it is predicted that sites
                                                                                                  located in suburbs where local policies
                                                                                                  such as low emission zones impact on
                                                                                                  people driving into cities, and where
                                                                                                  most people will be able to charge
                                                                                                       their cars on their own property
                                                                                                           or at their place of work, will
                                                                                                               see a rise in the numbers of
                                                                                                                  hybrid and battery electric
                                                                                                                   vehicles and consequently
                                                                                                                   a reduction in the sale
                                                                                                                   of liquid fuel. It has
                                                                                                                   been identified that this
                                                                                                                category of site tends to be ▹

24    www.ukpra.co.uk
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TECHNICAL
  Market Review 2020

                                                                          located where a flammable atmosphere       of Petroleum and Explosives
                                                                          is or may be present is certified to a     Administration (APEA) and the
                                                                          standard appropriate for the situation.    Energy Institute (EI) – advises that
                                                                              I doubt that this it is viable for     all elements of EV charging should
                                                                          EV equipment to be manufactured            be outside of hazard areas and that it
                                                                          to a standard that would enable            is not acceptable for an EV charging
                                                                          it to be certified for use alongside       system to be connected to an earthing
                                                                          petrol dispensing. A consultant who        system separate from that of the filling
                                                                          specialises in the electrical safety of    station. Plus, it advises that the EV
                                                                          petrol forecourts has been quoted          charger supply must be controlled by
                                                                          as stating ‘the last place you should      the forecourt emergency switching
▹ in fairly affluent areas and typically         Pictured, above:         consider installing EV charging is on      system. This would apply to both low
  includes convenience shopping. So, as          Filling stations         a petrol forecourt’. However, there is     and high voltage EV systems.
                                                 need to consider
  the need for fuel dispensing positions         their customer           guidance on how EV charging may be            The Institution of Engineering and
  decreases, the sites can benefit from          demographic and          installed on petrol filling stations.      Technology (IET), Code of Practice for
                                                 location when
  being able to accommodate more                 deciding whather to          When it comes to the power ranges      Electric Vehicle Charging Equipment
  short-term customer parking.                   replace liquid fuel      of EV charging, we need to differentiate   provides guidance on how EV charging
                                                 infrastructure with EV
      Another category is motorway               charging stations        between two levels of charging. Firstly,   may be installed in compliance with
  services and sites located on major                                     there is low voltage which will provide    the Electricity at Work Regulations
  roads. This is where it is most likely                                  up to around 150kw. Above that is          1989. A new version is currently
  to be necessary to combine liquid                                       high voltage up to 350kw. High voltage     in draft to cover high voltage EV
  fuel sales alongside EV charging                                        requires the supply to come from           installations. To facilitate high voltage
  and possibly other zero emission                                        an immediately adjacent electrical         charging requires the installation of an
  fuels such as hydrogen. These are                                       substation.                                electrical substation but the earthing
  the locations where customers are                                           As I write, the published guidance     arrangements for electrical substations
  likely to be either those that regularly                                doesn’t cover the installation of high     are complicated and onerous. The
  travel long distances or those where                                    voltage charging on petrol forecourts,     advice from the PRA is that should you
  their typical daily journeys are short,                                 but advice is being drafted and due for    be considering an installation of this
  but they occasionally use their car to                                  release within the next few months.        nature, a specialist consultant should
  travel further and where range requires                                     The Blue Book – to give it its         be employed.
  refuelling or recharging en route.                                      full title: Design, construction,             The Petroleum Enforcement Liaison
      The final category of petrol filling                                modification, maintenance and              Group has issued guidance (PELG –
  station is those that are in areas where                                decommissioning of filling stations,       PETEL 20) available from the Energy
  there are no policies in place that will                                published jointly by the Association       Institute website. This covers the legal
  force drivers into low or zero emission                                                                            responsibilities of petrol forecourt
  vehicles and where typically their
  customers own older vehicles. These            “There is no doubt that                                             operators regarding EV charging.
                                                                                                                        There is no doubt that for many
  sites will be the last to have to consider
  installing EV charging.
                                                 the transition to low or                                            forecourt operators the transition
                                                                                                                     to low or zero emission vehicles
      I should also mention that there
  are already plans for new large EV
                                                 zero emission vehicles                                              will bring challenges. But during the
                                                                                                                     four decades in which I have been
  charging-only sites to be located
  adjacent to major routes to cater for
                                                 will bring challenges”                                              associated with petrol forecourts, I
                                                                                                                     cannot remember a time that wasn’t
  the predicted shortfall of EV charging                                                                             challenging for some reason.
  points. The business case for these
  sites is comparable with many petrol
  filling stations in that their profitability
  depends on the provision of services
  other than vehicle fuelling such as
  coffee, food to go, etc. Some proposals
  include meeting rooms, temporary
  office facilities and restaurants so that
  vehicles can be filled with electrons
  while their occupants are elsewhere
  on site.

   SAFE OPERATION
   One major aspect of safeguarding
   against the flammable vapour being              Some forecourt owners have been
                                                   proactive and have already installed EV
   ignited on a petrol forecourt is to
                                                   charging facilities
   ensure that electrical equipment

 26      www.ukpra.co.uk
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                                  Telephone +44 (0) 1865 891 682
CAR WASH
Market Review 2020

T
        he Car Wash Association (CWA)          International Anti-Slavery Commission               Prevention Mobilisation Hub could be
        is fighting hard to encourage          and the Clewer Initiative) and Accenture,           extended to non-compliant HCW.
        more strenuous enforcement             the multi-national professional services               A good working relationship has
of existing regulations relating to            company. The group is currently                     been established with the Office for
car washing. Disappointingly, and              exploring ways to improve the Safe Car              Labour Market Enforcement (OLME)
as has been well documented, the               Wash app, originally developed by The               whose Strategy Report 2018-19 covered
Government’s focus has hitherto been           Clewer Initiative, for a major update in            the serious issue of non-compliant and
on other matters and we are constantly         2020. As part of its pro bono Tech4Good             criminal HCW. We now look forward to
reminding them of the urgent need to           programme, Accenture will support                   meeting Matthew Taylor, the OLME’s
address the issues highlighted in the          the redesign of the app. Ultimately, it             new director, with a view to collaborating
Parliamentary Environmental Audit              is intended that the app user will be               with his recently announced roundtable
Committee’s (EAC) 2018 report.                 provided with details of nearby car                 discussion schemes.
   This resumé summarises the level            washes that comply with the Responsible                We have continued to engage with
of the CWA’s commitment to more                Car Wash Scheme (RCWS) that is also
effectively and quickly deal with the          actively supported by the Gangmasters
serious criminal issues arising from the       & Labour Abuse Association (GLAA), so       “We are constantly
uncontrolled spread of hand car washes
(HCW) across the UK over the last 15
                                               informing customers about alternatives
                                               to rogue HCWs.
                                                                                           reminding of the need
years. Disappointingly, it does appear
that many Government departments and
                                                  The newly appointed independent
                                               anti-slavery commissioner, Dame
                                                                                           to address these issues”
agencies still fail to understand that their   Sara Thornton, with whom we had an
lack of enforcement is a prime reason for      extremely constructive meeting last                 HM Revenue & Customs both in London
this phenomenon.                               summer, introduced the CWA to the                   and regional offices during 2018-19.
   With this in mind, the CWA has              Police Crime Prevention Initiative (PCPI)           Despite HMRC’s activities described
formed a working group between The             and the British Parking Association,                in Sections 7 & 8 of the EAC Report,
Clewer Initiative’s The Rt Reverend            which runs the PCPI’s crime reducing                the number or modus operandi of
Dr Alastair Redfern (chair of both the         Park Mark scheme. This is growing and               gangmaster-style HCW operations has
                                               currently covers over 5,000 private and             yet to see substantive reduction.
The Car Wash                                   public car parks across the UK where                    Notwithstanding an apparent
Association’s Alexander                        non-compliant HCW could presently be                lack of urgency in responding to the
                                               operating. The BPA is now considering               recommendations concerning them in
Russell outlines the                           adding the RCWS to its well-established             the EAC Report, we continue to engage
group’s latest work to                         auditing scheme. We also plan to meet               with both national and local offices
clean up the industry                          the Metropolitan Police Service with                of the Environment & Rural Affairs/
                                               PCPI to determine whether its new                   Environment Agency. We feel that more
                                                                                                   pro-active prevention and control of the

A CLEAN FIGHT                                                                                      illegal disposal of toxic trade effluent into
                                                                                                   storm water drains will help close down
                                                                                                   the worst offending HCWs.
                                                                                                       We have met recently with the Local
                                                                                                   Government Association and we are
                                                                                                   undertaking specific local projects (e.g.
                                                                                                   in York and Harpenden) to highlight
                                                                                                   planning anomalies with HCW.
                                                                                                       This has proved to be an unusually
                                                                                                   challenging year or so with no less than
                                                                                                   34 ministerial changes since Theresa
                                                                                                   May became Prime Minister. With the
                                                                                                   General Election now out of the way,
                                                                                                   we hope that business uncertainty will
                                                                                                   be reduced by getting Brexit done, and
                                                                                                   the Government will become more
                                                                                                   focused on domestic matters. This
                                                                                                   will bring about investment in services
                                                                                                   which will mean increased budgets for
                                                                                                   regulatory authorities allowing better
                                                                                                   enforcement to take place which might,
                                                                                                   in turn, affect the number of HCWs. The
                                                                                                   CWA remains committed and confident
                                                                                                   that the number of rogue HCWs will be
                                                                                                   significantly reduced.

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