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Drivers are being hit with record terminal drop-off prices with seven of the UK’s 21 busiest airports putting up fees and one introducing them, new RAC research reveals.

The biggest jumps were at Southampton Airport which has increased its drop-off fees to £6 for 20 minutes (was £4 for 20 minutes in 2022) and Belfast International, which has put the charge up by £2 to £3 for 10 minutes.

Drivers heading to Glasgow Airport pay £5 for 15 minutes (up from £4 for 15 minutes in 2022), while at Aberdeen the initial rate also sits at £5 for 15 minutes (up from £4 for 10 minutes in 2022).

Leeds Bradford has upped its charges to £6 for 10 minutes (from £5 for 10 minutes), Liverpool John Lennon is now £5 for 10 minutes (up from £4 for 10 minutes), while Birmingham has increased its fee to £4 for 15 minutes (from £3 for 15 minutes).

Belfast’s other airport, Belfast City, has now introduced a charge of £3 for 10 minutes, having previously not charged for dropping off.

Despite not increasing its fee this year, London Stansted continues to top the drop-off charges table with an initial charge of £7 for 15 minutes.

Fortunately, six of the busiest UK airports are among the 13 airports that have frozen drop-off charges since last summer.

Alongside Stansted holding its prices are London Heathrow and London Gatwick which charge £5, Manchester is £5 for five minutes, London Luton is still asking for £5 for 10 minutes and Edinburgh costs £4 for 10 minutes.

More encouragingly, there are still three airports where relatives and friends can be dropped off without any charge as Cardiff, London City and Inverness airports all have a free option at the terminal forecourt.

RAC head of roads policy, Nicholas Lyes, said: “Having tracked airport drop-off fees since 2016, we can see putting up charges has now become something of an annual ritual.

“This year is no different with seven out of 21 increasing their fees and one introducing them for the first time.

“Thankfully the proportion of airports hiking fees this year is lower than last year, but that will be little consolation as charges across the board have never been so high.” By Graham Hill thanks to Fleet News

With car thefts on the rise, drivers are being urged to do more to deter thieves using high-tech methods to steal vehicles.

The Office for National Statistics (ONS) reported a 25% year-on-year increase in car thefts in May, but FleetCheck says awareness of the methods that can be employed to stop relay thefts, for example, remain patchy among vehicle operators and the general public.

Peter Golding, managing director at the fleet management software company, said: “Feedback from our client base indicates that fleets often know thefts are an increasing problem but while some are being very proactive, others are poorly informed about the methods that thieves are now using and how to deter them as is the general public.

“We’d like to see much more of an acknowledgment that this is becoming a genuine issue and agreement on best practise that can help to stop private and company cars and vans being stolen.”

Many of the most effective methods of protection against high-tech car theft are relatively simple and inexpensive.

“In the case of relay theft, it can be an issue of putting the key into ‘sleep’ mode, which some models allow, or placing it inside a Faraday wallet to disrupt the signal, something that costs just a few pounds,” Golding explained.

“Interestingly, some security experts recommend meeting the high-tech approach of the thieves with pretty low-tech responses.

“If someone is creeping onto your drive armed with a laptop, then an old-fashioned steering lock stands a good chance of deterring them.”

He says that fleets need to brief drivers about the potential for high-tech theft and explain what is needed from them in terms of protection.

“This is an area of fleet management where driver buy-in is crucial but can be difficult to generate,” he added.

“For company car and van drivers, a car theft can be seen as an inconvenience rather than a major worry and employers need to make it clear that they expect certain measures to be met, such as where vehicles are parked and keys kept, for example.”

The same rules apply to privately owned cars. Drivers need to be more aware of the dangers and what they can do to protect their vehicles. By Graham Hill thanks to Fleet News

Graham Hill Note: Whilst the following product is purely for the use of electric fleet operators there are many great features that would benefit consumers if a similar scheme was rolled out for general use. What do you think?

Mina has launched a new subscription service which combines the use of domestic charge points, home charging payments and access to a public charging network into a monthly fee for businesses with electric vehicle (EV) drivers.

Called Mina Onefleet, the all-in-one subscription package also allows businesses to spread EV infrastructure investment over time, rather than having to commit to a major initial capital outlay.

Onefleet, says Mina, aims to streamline the often-complex decision-making processes needed for EV roll-out thanks, in part, to a partnership with Plug Me In.

Andrew Stead, commercial director at Plug Me In, said: “We are confident that Onefleet will ease the transition to electric for businesses.”

Through Onefleet, Plug Me In will supply and install the Indra Smart Pro charger and will also provide servicing back-up throughout the life of the charger, including the in-service charging guarantee which gives free public charging up to 100 kWh if servicing work is delayed longer than two working days.

Ashley Tate, CEO of Mina, said: “Onefleet is a revolutionary new product for the EV sector, offering businesses a complete EV solution in one subscription package.

“With more and more businesses switching to EVs, it is clear they need support in providing a ‘plug to payment’ charging infrastructure for their employees.

“The complexities of approving and ordering home chargers, managing installation and costs, and then taking responsibility for the equipment for employees, and potentially ex-employees, is endless. That’s before you even get to managing in-life costs and paying drivers for their charging at home and in public.

“At a stroke, Onefleet aims to solve all these issues, and because it is based on a subscription, it also avoids the company having to make a massive financial outlay for multiple home chargers and the engineers to install them.”

Onefleet includes use of an Indra Smart Pro EV home charger; access to Mina Homecharge; access to Mina Chargepass; a business charging guarantee which offers free public EV charging if servicing work on the home charger is delayed; and a single monthly invoice to the company covering Onefleet subscription costs and energy consumed for all drivers.

Tate continued: “For a fixed monthly fee, a business can ensure their employees have a reliable home charger which is covered by a service guarantee, plus make use of our award-winning Chargepass and Homecharge payment solutions. And if an employee moves home, the charger can be reinstalled at the employee’s new address free of charge.

“We’ve designed Onefleet to be affordable – at less than £50 per month per driver, a business can ensure its drivers are fully up to speed with everything needed to switch to electric vehicles.”

Mina Onefleet cost £49 plus VAT per month and also incurs a £100 set-up fee, and operates on a minimum 24-month term. By Graham Hill thanks to Fleet News

The cost of peak and off-peak public charging has fallen dramatically, according to the June 2023 AA EV Recharge Report.

There was a 19% drop in peak rate costs for fast and rapid charging, coupled with a 15% fall in off-peak rates compared to May 2023. Off-peak ultra-rapid costs have fallen by 7p/kWh.

The AA says that the price drops show that charge point providers have overcome the issues experienced last month when some operators could no longer carry the increased charges following the ending of the Energy Bill Relief Scheme (EBRS).

With energy prices expected to fall further this year, the AA believes that this could just be the beginning to cheaper running costs for EV drivers.

Edmund King, AA president, said; “This is exactly the spark EV ownership needed after the electricity cost crisis.

“A 19p/kWh fall in a month for both fast and rapid peak time charging shows how quickly charge point operators can adjust their pricing and give EV drivers the benefit of cheaper energy.

“With predictions of further reductions in energy prices throughout 2023, EV owners may feel that this drop is just the tip of the iceberg when it comes to charging out on the road.”

He continued: “Despite some concerted attempts to undermine the EV transition, the future is immensely positive for electric cars.

“More models on the market, high levels of new car registrations, improved ranges, cheaper charging rates and investment in the charging infrastructure are only making the decision easier to buy a car with a plug.”

AA EV Recharge Report, June 2023 – flat rates

Charge type	Speed	Jun Ave (p/kWh)	May Ave (p/kWh)	Difference (p/kWh)	Cost to charge to 80%	Pence per mile (p/mile)
Domestic	Up to 7kW	34	34	0	£13.60	7.64
Slow	Up to 7kW	44	44	0	£17.60	9.89
Fast	8-22kW	55	55	0	£22.00	12.36
Rapid	23-100kW	68	66	2	£27.20	15.28
Ultra-rapid	+101kW	71	70	1	£28.40	15.96

AA EV Recharge Report, June 2023 -peak and off-peak rates

Charge type	Speed	Jun Ave (p/kWh)	May Ave (p/kWh)	Difference (p/kWh)	Cost to charge to 80%	Pence per mile (p/mile)
Slow Off-peak	Up to 7kW	33	33	0	£13.20	7.42
Slow Peak	Up to 7kW	53	53	0	£21.20	11.91
Fast Off-peak	8-22kW	75	88	-13	£30.00	16.85
Fast peak	8-22kW	79	98	-19	£31.60	17.75
Rapid Off-peak	23-100kW	75	88	-13	£30.00	16.85
Rapid Peak	23-100kW	79	98	-19	£31.60	17.75
Ultra-rapid Off-peak	+101kW	57	61	-4	£22.80	12.81
Ultra-rapid Peak	+101kW	65	72	-7	£26.00	14.61

By Graham Hill thanks to Fleet News

HMRC faces having to refund employers millions of pounds after wrongly refusing tax relief from national insurance payments paid on car allowances, a UK court has ruled.

Two employers – Wilmott Dixon and Laing O’Rouke – have successfully argued that car allowance payments made to its employees were ‘relevant motoring expenditure’ and therefore should qualify for relief from Class 1 National Insurance Contributions (NICs).

Both cases were heard together. Laing O’Rourke was appealing an earlier decision which had ruled in favour of HMRC, while the UK’s tax authority was appealing a previous ruling in favour of Wilmott Dixon being able to claim the relief.

This week, after considering the evidence, two judges in the UK’s Upper Tribunal ruled in favour of the employers, leaving HMRC potentially having to repay Laing O’Rourke £2.2 million in NICs from tax years 2004/05 to 2017/18 and paving the way for many more claims. 

Both cases follow the landmark Total People tax ruling from more than 10 years ago, when HMRC lost a case at the Court of Appeal involving grey fleet mileage claims.

Total People’s long-running legal battle related to an NI refund claim based on the difference between the HMRC 40p per mile (ppm) approved mileage allowance payment (AMAP) rate (now 45p) and the 12ppm paid by the employer plus an additional lump sum paid to the employees for using their private cars on business.

The value of the amount claimed was approximately £146,000 or around £1,000 per employee, which was subsequently paid by HMRC.

In what was the first test case following the Total People ruling, Laing O’Rourke argued in a First Tier Tribunal, two years ago, that its car allowance scheme should also qualify for relief from NICs on payments made to employees.

HMRC argued that relief did not apply, because the payments could not be defined as relevant motoring expenditure. Judge Tracey Bowler agreed, ruling in favour of HMRC.

Hearing Laing O’Rourke’s appeal in the Upper Tribunal, however, the Honourable Mr Justice Michael Green and Judge Jonathan Cannan decided that Judge Bowler had “erred in adopting a narrow definition” of relevant motoring expenditure. As a result, they allowed Laing O’Rourke’s appeal, ruling the company was entitled to repayment of NICs paid in relation to car allowances.

In the case of Willmott Dixon, the judges also dismissed HMRC’s appeal. The company had previously argued that car allowance payments made to its employees were relevant motoring expenditure and should qualify for relief.

HMRC had refused to refund Willmott Dixon for NICs paid from 2004/05 to May 2014 relating to car allowance payments made by the firm.

It argued that the car allowances were earnings and not relevant motoring expenditure, but in what was a landmark ruling for fleets last year, the First Tier Tribunal ruled in favour of Willmott Dixon.

This latest ruling agrees with that original decision and has also now found in favour of Lang O’Rourke, exposing HMRC to further cash allowance claims.

Definition of relevant motoring expenditure

What will be of interest to employers and fleets is that the judges in their ruling said that the definition of relevant motoring expenditure is concerned with the nature of the payment by the employer to the employee, in particular, whether it is in respect of the use of a car.

They say if it is a payment for relevant motoring expenditure, then “one way or another there is relief” for the qualifying amount.

However, they added that the provisions do not focus on how the employee spends the money. Relevant motoring expenditure, they agreed, should be given a wide meaning which includes expected use, potential use and availability for use.

Car allowances at the construction and property firm, Wilmott Dixon were paid to employees based on a grade which was allocated to that employee. The more senior an employee, the higher the grade.

The amount paid did not depend on the number of business miles driven by an employee.

Separate business mileage payments were intended to reimburse an employee for the fuel costs of actual business miles driven.

An employee who was entitled to a car allowance at a certain grade could choose to select a car from a lower grade choice list and be reimbursed the difference in the car allowance for those grades.

HMRC had argued that it should not attract tax relief, because it was calculated by reference to grade, not by reference to actual business use, and some employees who received the allowance did no business miles.

However, the court again disagreed with HMRC. In their ruling, the judges said: “The grade of employee affected the amount of the car allowance which was based on the type of company car that an employee of that seniority would have been entitled to if they had chosen that option.

“Again, the fact that some employees did no business miles cannot affect whether those who did are entitled to the relief.

“In our judgment, the FTT (First Tier tribunal) was correct to conclude that the payments made by Willmott were ‘in respect of the use by the employee of a qualifying vehicle’.

“The payments were made to ensure that the employee had a suitable vehicle available for business use.”

John Messore, managing partner at specialist consultants Innovation Professional Services, who represented Willmott Dixon, told Fleet News: “If it’s a separate payment, i.e. not salary but a car allowance, anyone who has done any miles can claim the difference against that car allowance. It opens the floodgates for every single taxpayer in the UK.”

Messore noted that, while the ruling was good news for employers, many were reluctant to try and claim the cash they were now entitled to back.

Nevertheless, he said he was working with a number of companies who have lodged claims with HMRC and he was confident that, following this ruling, they will similarly succeed.

HMRC has 30 days to appeal the decision to the Court of Appeal. By Graham Hill thanks to Fleet News

This Piece was aimed at companies with fleets of company vehicles but with so many great tips included I felt the need to include it in with my newsletters. I particularly support the ‘Splash and Dash’ way of charging your car. Firstly it frees chargers up and as you pump in more electricity into the batteries as they fill up the charge rate slows down. Onto the piece:

Charging is regularly identified as one of the biggest concerns both organisations and drivers have over the transition to electric vehicles.

After all, a battery electric vehicle with a flat battery is unusable while, without proper planning, they could spend a significant amount of time during the day being charged instead of being put to work.

This means a robust charging strategy which includes when and how BEVs are charged is a must.

There will be no one-size-fits-all answer for this: it will not be the same for all organisations and will likely not be different for different vehicles on the same fleet.

An important first step is to assess the duty cycles of BEVs and their range, and match them to the available charging options. It may be that vehicles do not need to be charged every day.

For organisations which operate a back-to-base model where vehicles are left at a central site overnight, it makes a lot of sense to install workplace charging infrastructure so they can be plugged in when parked up, ready to be used the following morning.

Workplace charging can also be used during the day by company car drivers who commute to work or travel between company premises, as well as other employees who drive EVs.

If employees take their EVs home at night and they have off-road parking, it may be possible for them to have a charge point installed at their dwelling and plug their vehicle in there.

However, when that is not possible – it is estimated that between 30% and 40% of UK households do not have a drive – or if a BEV needs to do long-distance journeys, then the charging strategy should also include the public charging network.

The use of telematics and route optimisation software makes planning where drivers charge much easier, as they can show the location and type of chargers in relation to the vehicle route.

The technologies can also allow organisations to time charging to coincide with drivers’ breaks, minimising disruption to the working day.

Telematics can also be used to confirm that employees are rapid charging to 80% and not lingering to slow charge to 100%, which is seen as the most productive balance of work availability against charging time.

Organisations also often try to minimise use of using rapid charging on the public network as it is the most expensive option, and low operating costs are an essential part of their electrification objectives.

Additionally, in cases where there is limited charging provision such as in remote areas, telematics means work can be planned around the few charge points that are available, making EVs usable in places where there might otherwise be difficulties.

Here we look at the three charging options, the challenges surrounding them and how they can be used by fleets.

Workplace/depot charging

Most organisations will look to install some workplace charging, even if it is only a handful of points to support electric company car drivers or visitors.

For fleets where vehicles are left on-site overnight, the charging provision will need to be much larger.

In both instances, an organisation needs to consider a number of factors when installing workplace charging infrastructure.

Firstly, if the site is leased, then the organisation will need to speak to the landlord to gain permission to carry out the work.

It also needs to consider how many charge points are needed. To determine this, a company will need to consider the number of EVs operated both currently and in the future, the number of available parking bays and the available budget for the installation.

It also needs to consider what speed of charger is required and this will depend largely on the amount of time the vehicle is parked.

If it can be charged overnight, for example, a slow charger may be sufficient, but if the required turnaround is faster, a rapid charge point may be needed to give them the extra range to fulfil all tasks

Consider also the speed with which the vehicle can draw the charge. It varies considerably and ultimately limits how fast the vehicle battery can take on the power.

There are also big differences in the cost of buying and installing charge points. For example, a 7kW charge point capable of charging two vehicles at the same time can cost around £2,000 to install, while a 150kW rapid charger is upwards of £35,000.

An organisation should also assess the electricity supply to the premises to check it has the capacity to power all of the chargers needed.

If it doesn’t, two main options exist. A smart charging system could be used and this will be able to spread or reduce the speed of the charging sessions but still ensure all vehicles are ready when they need to be.

However, if this is not suitable – for example, if all the vehicles have a short turnaround before they need to be used again so need to be charged at the same time – then an upgraded substation may be required at the site.

Before April 2023 the organisation was responsible for footing the considerable bill, but Ofgem has ruled the cost now has to be spread across the electricity distribution sector instead.

Organisations are still responsible for any groundworks needed on their sites, and this will influence the location of any charge points as the more digging which is needed to lay cables, the more expensive the install becomes.

The closer charge points are to the site’s power supply, the less groundwork needs to be carried out.

Typically, this will be found within a main building, which is why charge points tend to be adjacent to it rather than in the middle of a car park.

Government help towards the cost of installing workplace charging is available.

Its Workplace Charging Scheme (WCS) has so far assisted more than 7,000 businesses and the grants cover up to 75% of the total costs of the purchase and installation of EV charge points, capped at a maximum of £350 per socket and 40 sockets across all sites per applicant.

Organisations can also claim up to the full amount, but slowly roll out the installation of chargers: they do not all have to be installed at the same time.

This means an organisaton could choose one or two sites to trial the full process of planning and installing chargers, and gather data on potential usage for when it rolls them out further.

A further decision to take is whether it should charge drivers for using the charge points.

For vehicles which are used purely for work purposes, the answer is obviously no, but it is more complicated for drivers who do not have job-need vehicles, such as many company car drivers or other employees who have their own BEV.

For these, there are no benefit-in-kind tax implications if an organisation wishes to provide free charging to them as electricity is not classed as a vehicle fuel by HMRC.

However, an organisation may not wish to pay for EV charging at scale so can set a fee for usage.

This could see drivers being billed for either the amount of electricity used or the length of time a vehicle has been plugged in.

Who is using the workplace charge points, when and for how long can be managed through groups on media channels such as shared calendars, WhatsApp or MS Teams, while drivers who stay in a charging bay for too long could be charged an increased amount to deter this.

Charge points can be operated by staff RFID (radio-frequency identification) cards, apps or contactless cards provided by the company which installs and manages the units.

Home charging

For many organisations, having employees charging at home will be the most convenient and cost-effective option.

The cost of electricity will be lower at a domestic premises than at a commercial one, while it will usually also mean the employee does not need to spend any time during working hours charging.

However, this option will not suit all organisations or drivers. As previously stated, it is estimated that between 30% and 40% of UK households do not have off-street parking where they could install a charge point, but in reality the number will be higher due to the practical challenges of installing points in rented accommodation or where parking spaces are not adjacent to the building.

Organisations have also found that some drivers who do have suitable off-street parking and take their vans home at night are unwilling to park them on their driveway if it means leaving their own car on the roadside.

Some employers either provide or contribute towards the cost of a home charge point to incentivise drivers to take BEVS and make the transition as easy as possible.

Some leasing companies can also include the provision of a home charge point as part of a vehicle finance agreement.

The decision whether to supply a home charge point to an employee is also influenced by if the vehicle is a perk or a job-need one. Employers tend to feel they have more of an obligation to provide a home charge point for those workers who need their vehicle to carry out their role.

Home charge points are either 3.7kW or 7kW, depending on the electricity supply to the house, and typically cost between £800 and £1,000.

Public charging network

The public charging infrastructure has a key role to play in the successful uptake of BEVs, whether the driver does not have access to another form of charging or if it is used by motorists for a top-up during longer journeys, for example.

However, it does come under a lot of fire for being inadequate for current and future needs.

Latest Zap-Map figures show that there were 40,496 public charging devices in 23,902 locations in March, a 35% increase on 12 months ago. More than 7,500 of these charge points are rapid or ultra-rapid.

However, the number of chargers which will ultimately be needed is unknown, and estimates vary.

For example, in its Taking Charge: The Electric Vehicle Infrastructure Strategy report, the Government said the UK will probably need at least 300,000 by 2030, while the Society for Motor Manufacturers puts the figure at 2.3 million.

Equally important as the overall number of chargers is their location. Department for Transport analysis shows the spread is not uniform throughout the UK, with London and Scotland having much better coverage than regions such as the North West, the Midlands and the South West.

Public charge points fall into three main categories: high-speed on-route and charging hubs, destination chargers and on-street provision.

The high-speed facilities tend to be on or near trunk roads, while the destination charger description covers those found at supermarkets, shopping centres and cinemas: places where the vehicle could be left for several hours while its occupants take part in another activity.

On-street charge points are those, for example, installed in lampposts or on the side of the road and have slower charging rates as they are intended for people to park up and use overnight.

A consistent issue over the public charging network is payment, with traditional concerns over the number of different apps, accounts and RFID cards people need to use charge points from different operators.

This issue still exists but the situation has improved in recent years. The Government has, for example, mandated that users should be able to use contactless payment at rapid charge points.

A number of companies also offer products similar to the traditional fuel card, which allows a driver to use charge points owned by different operators to pay using a single card.  By Graham Hill thanks to Fleet News

Nine out of 10 local authorities are yet to implement an electric vehicle (EV) charging infrastructure strategy, with a lack of time cited as the biggest barrier.

In a study conducted by charge point operator Believ, council representatives added to growing concerns that the rollout of public charge points is falling well behind the Government’s ambition to deliver 300,000 by 2030.

Time was cited as the biggest barrier (63%), followed by lack of funding (40%) and then councillor pushback, though the numbers were small (6%).  Almost all (98%) expected it would take more than 12 months to roll out an EV charging infrastructure strategy across their local authority.

A nationwide survey, conducted by Believ in 2022, found that only 14% of local authorities in the UK have dedicated resource for implementing new EV infrastructure. It also found that a lack of funding and guidance from central Government means local authorities can only allocate 15 hours per week to EV projects.

The latest findings come in the context of new figures from the Society of Motor Manufacturers and Traders (SMMT) and published in The Times that show that in some areas of the UK there are up to 85 EVs competing for a single charge point, and pressure is mounting for local authorities to prioritise the switch to electric.

Perran Moon, interim CEO at Believ, said the recent findings are reflective of the situation on the ground and a lack of urgency in the roll out of vital EV infrastructure.

He added: “Our findings suggest that there is still clearly a hesitancy due to lack of time and lack funding by local authorities to begin the process of rolling out charge point infrastructure. And crucially, local authority’s need the support, expertise, and guidance from charge point operators.”

A separate study, in March, found that nearly half of local authorities believe it will take less than a year to install electric vehicle (EV) charging infrastructure, when it actually takes closer to three.

Liberty Charge found that 85% of local authorities believe it will take less than two years to install EV charging infrastructure, including charge point strategy creation. By Graham Hill thanks to Fleet News

The cost of off-peak slow public charging has dropped more than 10% in the past month to 33p/kWh, according to the May 2023 AA EV Recharge report.

Peak and off-peak rates for faster chargers continue to soar, however.

The end of government support for businesses providing charging, under the Energy Bill Relief Scheme (EBRS), has reversed reductions in off-peak and peak faster charging costs.

While some providers have been unable to carry the increased energy costs for too long, AA said it is hoped that this is a short-term blip and that faster charging costs can drop later in the year.

Peak rates for rapid chargers have reached almost £1 per kWh. In a larger EV, that means it would cost around £40 to add 100 miles of charge.

Peak slow charging (up to 7kW) dropped by more than a quarter, from 72p to 53p kWh. Off-peak charging at the slow rate outside a home is now on average below the Energy Price Guarantee of 34p/kWh.

With the Energy Price Guarantee extended until June 30, the AA says kerbside operators have changed tack to better reflect the offering available to electric vehicle (EV) owners with dedicated off-street parking using a specialist EV tariff provided by their energy supplier.

This new drop in charging costs outside homes comes as the eight-month fall in average petrol pump prices ends.

In the past fortnight, petrol has risen from a low of 143.04p a litre to 143.47p, having been in freefall from 166.54p a litre at the end of October.

For those EV owners using flat-rate tariffs, costs remain largely static.

The standard variable tariff for domestic electricity rates will be lowered to 30p/kWh from July 1. The reduction is down from the current 34p/kWh which has been in place since October 1, 2022.

Drivers support equalisation of VAT

A policy which drivers are keen to see equalised is the rate of VAT when charging in the public realm.

Domestic charging VAT is valued at 5% but increases to 20% away from home.

A survey of more than 11,500 drivers carried out last week by the AA found that more than half of drivers (56%) feel that VAT on public charging should be reduced to the 5% domestic energy VAT rate, with the AA calling for the Chancellor to act accordingly in his upcoming Budget this autumn.

Jack Cousens, head of roads policy for the AA, said: “Drivers without a driveway looking to switch to an EV will be happy to see off-peak kerbside charging now cheaper than the Energy Price Guarantee.

“This means they will feel some of the benefit EV owners with dedicated off-street parking have.

“While the vast majority of EV charging is carried out at home, for those travelling further afield the rise in prices for faster charging has damped the good news.

“We hope this is a minor blip as electricity prices are predicted to fall later this year. Savvy EV drivers heading on a summer road trip should plan their charging stops at cheaper locations or time their journey so they can take advantage of off-peak rates.

“This only highlights why reducing VAT on public charging from 20% to 5% is so crucial in helping more people switch to electric cars. The Chancellor can deliver some positive and popular news at the Budget and we urge him to do so.” 

Graham Hill Comments: What a load of tripe and a waste of time. Spend time campaigning for better roads, safer batteries, less distracting in-car technology rather than waste it campaigning for a reduction of VAT charged on public chargers. I don’t know a single person who is waiting for the drop in VAT before getting herself an electric car. And what about company car drivers (the main users of public chargers) who claim back all the VAT as input tax? Clearly the difference between input and output tax helps the treasury to replace some of the duty and VAT lost as a result of petrol and diesel drivers transitioning.

This VAT argument is ridiculous! Of course it’s unfair and maybe further down the line we can address this unfairness but not now. 

AA EV Recharge Report, May 2023. Flat rates:

Charge Type	Speed	May Ave (p/kWh)	Apr Ave (p/kWh)	Difference (p/kWh)	Cost to charge to 80%	Pence per mile (p/mile)
Domestic	Up to 7kW	34	34	0	£13.60	7.64
Slow	Up to 7kW	44	40	4	£17.60	9.89
Fast	8-22kW	55	54	1	£22.00	12.36
Rapid	23-100kW	66	67	-1	£26.40	14.83
Ultra-rapid	101kW and above	70	70	0	£28.00	15.73
PETROL		143.35ppl	146.52ppl	-3.17ppl	£45.87	13.69

AA EV Recharge Report, May 2023. Peak and off-peak rates:

Charge Type	Speed	May Ave (p/kWh)	Apr Ave (p/kWh)	Difference (p/kWh)	Cost to charge to 80%	Pence per mile (p/mile)
Slow Off-Peak	Up to 7kW	33	37	-4	£13.20	7.42
Slow Peak	Up to 7kW	53	72	-19	£21.20	11.91
Fast Off-Peak	8-22kW	88	57	31	£35.20	19.78
Fast Peak	8-22kW	98	75	23	£39.20	22.02
Rapid Off-Peak	23-100kW	88	57	31	£35.20	19.78
Rapid Peak	23-100kW	98	75	23	£39.20	22.02
Ultra-rapid Off-Peak	101kW and above	61	51	10	£24.40	13.71
Ultra-rapid Peak	101kW and above	72	64	8	£28.80	16.18
Petrol		143.35ppl	146.52ppl	-3.17ppl	£45.87

By Graham Hill thanks to Fleet News

Car buyers have been warned that any step-change in EV battery technology could create future shocks for residual values, according to FleetCheck.

Toyota has recently said it is working on new solid state battery technology that could deliver over 900 miles of range.

The average battery range for new electric vehicles is already almost 300 miles, according to the Society of Motor Manufacturers and Traders (SMMT).

Peter Golding, managing director at the fleet software specialist FleetCheck, said the major advances in technology could present predictable effects.

Golding said Toyota’s solid state designs, CATL talking about doubling energy density and Mullen Automotive’s improved battery management to name a few, is welcome, but also creates problems.

He said: “A manufacturer who has access to better batteries is going to want to make them available as soon as possible in order to gain a competitive market advantage but this is going to affect EVs already in use.

“It won’t render them obsolete but it could make them much less attractive, especially if the new tech is not just more effective but cheaper, which is conceivable.”

Golding said that while values on current EVs are unlikely to collapse completely, there could be major reductions.

He added: “This would have a substantial impact on leasing companies too, of course, who are already being very conservative in their EV future forecasts thanks to the quite dramatic drop in values seen over the last year.

“Buying EVs and bearing the RV risk remains a risky business.

“It seems to us that there is no way around this situation.

“EVs are still a relatively new technology in a mass market sense and step changes in technology are very much a possibility but any advances will probably be a double edged sword and fleets need to factor that into their decision making.”  By Graham Hill thanks to Fleet News

Charge point operator Gridserve has increased the cost of charging an electric vehicle (EV) on its Electric Highway network.

The price rise took effect yesterday (Thursday, June 1), with the cost of using its high-power chargers increasing by 3p per kWh, to 69p/kWh.

To simplify pricing, and also to reduce some confusion around the levels of power delivered, Gridserve is also moving all DC chargers, including its medium-power chargers and those at our Electric Forecourts, to the same pricing.

The charge point operator said that one rate for all DC chargers on its network will “avoid unnecessary confusion of different rates at different locations, or even different rates at the same location”, where it has multiple charging speeds.

It added: “While DC charging will increase slightly at this time, we’ve been able to keep our AC chargers at 49p/kWh, to remain as affordable as possible and still below the industry average.”

It acknowledged that the price for DC charging may be “unwelcome news”.

“We also hope you appreciate that Gridserve have held our pricing below that of competing networks for some time now, whilst our cost base has continued to inflate, in some cases above our pricing,” it explained

“It vitally important that we continue to ramp up investment in chargers, people, materials, and in our supply-chain partners, to deliver the infrastructure, services and confidence necessary to support the transition to EVs in the earliest possible timeframes.”

Gridserve says it needs to do this in a way that is sustainable for both its business, and its customers.

“That’s why we are only marginally increasing pricing, and even at the new levels will remain amongst the most competitively priced charging in the UK for high-power chargers,” it said.

Pre-authorisation limit for charging an EV

Gridserve has also announced that it is updating its Rugby Services Electric Super Hub pre-authorisation limit.

While it is able to keep its pre-authorisation to £1 across the rest of the Gridserve Electric Highway, the Tritium chargers at Rugby need a higher pre-authorisation to begin the charge session.

The charger then delivers energy up until it reaches the pre-authorisation limit and stops the charge.

Gridserve explained: “We’ve received a lot of feedback from customers that this is often an inconvenience, as they have to return to their cars to re-start charging when they haven’t reached the required state of charge.

“In order to try and limit disruption to our customers charging sessions, we are increasing the pre-authorisation limit to £35 at Rugby Services. This is still among the lowest in the industry and we will endeavour to keep it that way.”

It continued: “Price rises will never be welcome news but our promise to you is that we will continue to invest heavily in strengthening the UK’s charging provision so that drivers have the confidence to switch to electric vehicles and the transition to electric happens in the shortest possible timeframes to limit climate change and the negative impact on our planet.”  By Graham Hill thanks to Fleet News