New Zealand motorists, including EV drivers, must pay their fair share for the usage of our roading network - that's a given. EVs have been subsidised by other drivers with an RUC exemption for the last couple of years, which has certainly driven uptake (alongside the recently repealed clean car rebate). Consumption based RUCs isn't the issue, and I encourage it to ensure we can continue to invest in a better transportation network overall for New Zealand.
The issue at hand is how the Ministry of Transport has decided to implement the road user charges for electric vehicles - simply copying the current approach for diesel vehicles, in that EVs will pay the same dollar amount per km travelled as diesels (Source). On face value this seems like a reasonable and pragmatic approach - regardless of the underlying engine, both types of vehicles drive the same distance and contribute the same amount of wear on our roads. However when you start comparing with petrol vehicles, the approach taken significantly devalues electric vehicle usage compared to petrol vehicle usage.
Someone can buy a large, inefficient petrol vehicle (that uses 12.6L/100km) and pay less in road user charges than an EV. On the extreme end, EV drivers would pay 3.7x more in RUC than someone with a 2023 Toyota Camry Hybrid – one of the standard hybrid cars available today.
Solutions
Parity for emissions: If the government wanted parity in RUC between efficient petrol vehicles and EVs, the RUC should be set at 25c per km travelled mathematically speaking. This obviously isn't parity with diesel vehicles, but it goes to show the unequality of the current RUC system - between petrol, diesel, and electric vehicles.
Parity for all: The fairest solution would be to set a standard per km RUC rate for all vehicles, regardless of engine type. The two largest issues with this however is that it removes any incentive to get a more efficient petrol vehicle, as taxes will likely be removed from petrol to offset the new taxes on a per km basis. The other issue is getting every vehicle on the standard RUC system - though solveable through the next WOF check.
Ignoring subsidies for a second, the two solutions above simply reach parity - right now, buying an EV is a bad financial decision if you consider road user charges in isolation.
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I have sent the above with similar content in June 2023 to then Minister of Transport Kiri Allan, and the now current Minister of Transport Simeon Brown, and thought I should share my analysis of the impending road user charges for electric vehicles in New Zealand from 1st April 2024 - Naturally I got no response from the former or current minister or their staff.