NINE out of 10 fleet operators (91%) believe that current Advisory Electricity Rates (AERs) for electric vehicles (EVs) need revising to encourage home charging, according to a new survey by the Association of Fleet Professionals (AFP) and Nissan.
At present, the AER specified by HMRC is just 4ppm which, said Paul Hollick, AFP chair, completely fails to cover reimbursement of fuel costs when most individuals are now paying closer to an estimated 18 pence per kwh.
“This is a stumbling block for fleets adopting EVs, as responses to the survey show. Some managers even said that it was stopping their electrification process completely because their drivers did not want to be out of pocket in the face of rapidly rising electricity prices.
“While the sample size is quite small – just 45 fleets – it does show that this is being recognised as a very real issue for businesses as they look to adopt electric cars. Everyone knows home charging is essential but the AER creates a very real difficulty.
“Of course, this is not just a driver reimbursement issue. Many fleets have used the AER to calculate their EV whole life costs and are now finding these are well adrift of the results they are now seeing. The AER has become detached from real world finances.”
Hollick said that the AFP had been in dialogue with the HMRC over this problem and had made some progress, with the use of an “actual cost” model now being allowed.
“We are continuing lobbying activity and are hopeful of some movement soon. This is an issue that needs to be resolved in order for our sector to speed its conversion away from petrol and diesel vehicles and towards electrification.”
The survey was carried out through the AFP’s new EV hub, created with the support of Nissan and designed to support fleet operators through the process of EV adoption. It features a range of resources including a list of frequently-asked questions about EV operation, and news of upcoming AFP events covering electrification such as training sessions and webinars.
Hollick added: “With financial assistance from Nissan, we are now able to provide a range of information to aid our members as they begin to adopt electric vehicles and also carry out these monthly EV surveys. It’s an important element of our digital strategy.”
