Problems forecast around EV drivers paying RUC

Documents show the government expects problems regarding getting EV owners to pay road user charges (RUC).

That’s according to Radio New Zealand (RNZ) which says an “e-RUC for electric vehicles” is among considerations.

One source forecasts increasing non-compliance with RUC and debt for customers entering the system.

“Others – released under the Official Information Act – said the road user system as it is could not cope, suggesting strategic changes to road user charges to deal with financial pressures as part of a wide regulatory overhaul of transport,” RNZ adds.

EVs have been exempt from RUC to encourage people to buy EVs, but unless they are plug-in hybrids (PHEVs) EVs have not contributed to fuel pump revenue for roads.

“Electric vehicles currently exempted but [are] expected to be added to the system in April 2024,” says a May 25 Waka Kotahi NZ Transport Agency document, which also predicts problems such as increased non-compliance and debt for those entering the RUC system.

It could see EV owners charged $76 per 1000km, to add to the $2 billion in RUC raised from other vehicle owners and drivers.

Officials have been investigating what to do next, such as an “e-RUC” for EVs, and whether there will be sufficient resources to cope, especially with changes relating to emissions, the environment, climate matters and the like.

NZTA costs have increased – it’s reportedly needing $265 million annually.

Meanwhile, the National Party says it won’t extend the EV exemption past March 31 next year.