E-vehicle laws to stabilise market demand

The environment for e-bike and e-scooter manufacturers in Ireland has drastically changed over the last number of years, say MHC lawyers.

In a briefing, MHC points out that what was once an open but uncertain market for these products has now shifted significantly towards regulation and standardisation, both in manufacturing and use.

The recent introduction of the Road Traffic and Roads Act 2023 has only cemented this trend, the lawyers say.

The act has also offered some much-needed clarity by providing a legal framework for the use of e-bikes and e-scooters in Ireland.

What’s affected?

The act regulates the use of all e-scooters and e-bikes in Ireland and legalises their use on Irish roads.

It has established a new category of vehicle, outside of the definition of a mechanically propelled vehicle, known as Powered Personal Transporters or PPTs for short.

These e-bikes and e-scooters are exempt from tax, insurance, registration, and licence requirements.

In practice, they are treated the same as regular push bikes and scooters.

To be considered a PPT, e-bikes must have:

• A maximum power output of 250 watts or less,
• A motor that cuts off once you stop pedalling,
• A maximum speed of 25km per hour,
• Front and rear lights.

Power output

E-bikes with a power output or maximum speed above these limits, as well as those that can operate without pedalling, fall into a different category.

They are classified the same as mopeds and motorbikes and require a licence, registration, tax, and insurance to be used on Irish roads.

Such vehicles are now known as e-mopeds.

To be considered a PPT, e-scooters must:

• Weigh a maximum of 25 kilograms, including batteries,
• Travel at speeds of 20 km/h or less,
• Have an electric motor with a maximum power output of 400 watts or less,
• Have wheels of at least 200mm diameter,
• Have front and rear lights, reflectors, front and rear brakes, and a bell,
• Have a manufacturer’s plate showing the power output, weight, and design speed,
• Be roadworthy.

E-scooters outside these criteria will remain illegal for use on public roads.

Market conditions

Prior to the introduction of the act, the use of e-bikes and e-scooters on Irish roads was widespread but technically illegal.

The recent legislative changes are likely to have a positive impact on market demand and a stabilising impact on the industry as a whole in Ireland, the MHC lawyers state.

For the manufacturers and distributors of e-bikes and e-scooters that exceed the specified criteria, this legislation may have a negative effect on demand.

Enforcement

Enforcement of e-scooter rules may begin in earnest now that this legislation has been enacted.

For e-bikes that exceed the stated criteria, the requirements for a licence, registration, and tax is likely to hinder demand for these vehicles.

There are very few, if any, insurance providers for high powered e-bikes at present in the Irish market.

It may take some time for insurance market to provide cover for this category of vehicles, and this could have an adverse effect on demand.

Other risks

The increasing use of e-bikes and e-scooters on Irish roads has resulted in a steady increase in the number of accidents involving e-scooters and e-bikes.

For the first six months of 2024, collisions involving scooters rose from 123 to 174 – a 41% increase on the previous year.

Under the act, PPTs are not required to have the type of insurance that would typically offer coverage in case of accidents or damage caused to third parties or their property.

The ever-increasing popularity of PPTs is likely to result in the continued increase in the numbers of claims brought by private individuals and insurance companies against PPT users who are not covered under any insurance policy and who may not have the financial resources to meet these claims, the lawyers state.

Opportunities 

The legalisation of e-bikes and e-scooters on Irish roads has opened the door for licensed sharing schemes to be implemented across Irish cities and towns.

The Department of Transport has confirmed that local councils will be able to set up licensing and contractual arrangements with rental companies, in consultation with the National Transport Authority.