Following the publication of the Transport Committee’s new report on road pricing, David Savage, vice president for UK & Ireland at Geotab, examines how telematics will underpin plans for a revised pay-as-you-go road taxation system designed for an all-electric vehicle future.

David Savage, vice president for UK & Ireland at Geotab

The drive towards an all-electric future is set to rapidly accelerate in the UK in the coming years. As well as surmounting pressure on manufacturers to increase production of zero-emissions vehicles, the 2030 deadline for the ban on the sale of new petrol and diesel cars and vans is also fast approaching. While this transition is to be broadly welcomed for its impact on carbon emissions, it poses a difficult question for the Exchequer: how to avoid a £35 billion fiscal black hole from a loss of fuel duty and vehicle excise duty?

The House of Commons Transport Committee has examined this question in a new report and posed ‘road pricing’ as the only viable alternative. The suggested initiative would implement a ‘pay-as-you-go’ road taxation system that would utilise telematics – a method of monitoring and tracking vehicles via GPS technology and on-board diagnostics (OBD) data – to charge drivers according to distance driven, factoring in vehicle type and time of day.

The power of telematics

While the introduction of an entirely new taxation system at a national level will be no small logistics feat, telematics is perfectly suited as the lynchpin to this effort. The key to telematics is in its simplicity. Through the installation of a small telematics device into a vehicle, a host of data can be accurately analysed, including location, speed, idling time, harsh braking and acceleration, fuel consumption and more.

All of this information allows individuals and organisations to optimally plan their route, perform predictive vehicle maintenance, and gain insights into driver performance, enabling them to implement better driving habits to improve safety.

Geotab has 2.5 million telematics users worldwide and processes more than 40 billion data points daily. We can vouch first-hand for the ability of telematics to work at scale. In fact, the more vehicles that are connected, the greater the volume of data entry points there is for inspection. The knock-on effect boosts the efficacy of telematics solutions at predicting congestion, identifying mechanical issues, and issuing driving conditions alerts.

Furthermore, with potentially millions of drivers using telematics, we can benefit from an accumulative reduction in carbon emissions. This is achieved by drivers analysing the data from their telematics device via a cloud-based application on their phone, laptop or PC,  to make adjustments to their vehicle or driving behaviour. As well as having real-time insights to more efficiently plan their routes, monitor tyre wear and manage fuel consumption, users can also compare at a glance a public transport alternative to their journey, encouraging more people to opt for environmentally friendly travel.

Creating new technology-led opportunities

Should the Government act upon the recommendations of the Transport Select Committee’s report, this could herald a profoundly more equitable, tech-led approach to how we implement taxation on UK roads. Telematics is an oft underutilised tool that can reap huge cost reductions and environmental benefits.

While many UK businesses can already attest to the savings that can be realised by operating a fleet using telematics, through its widespread introduction, its inherent environmental benefits can become a game-changer in our efforts to decarbonise the transport sector.

At Geotab, we eagerly await the Government’s response to the findings of the report in the coming weeks or months. Road taxation is crucial in funding not only road maintenance and transport development, but also for financing many other essential capital expenditure works and upkeep across society.

Given the magnitude of the task to introduce such a novel solution nationwide, we would encourage the Government to act with haste. This begins by engaging with technical partners and consultants with the know-how required to implement telematics successfully and at scale. A golden opportunity awaits to finally deliver on a fair tax system based upon actual road usage, while simultaneously enhancing our national efforts in improving road safety and sustainability.