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Industry calls for an increase in advisory fuel rates for EVs

Due to soaring energy prices, October’s price cap will see electricity in the home rise to 52p per kWh and the daily standing charge up to 46p. Some public chargers could increase to £1 per kWh, which would see the Tesla Model 3 standard range costing around 21p per mile to run.
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Karl Howkins

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2 September 2022

THERE are new industry calls for the government to increase the advisory fuel rates (AFR) for EVs as the price of charging increases due to the energy crisis.

Green mobility provider SOGO argues that drivers looking to make the switch to an EV need clarity on rates.

The current AFR for an EV is 5p per mile. Due to soaring energy prices, October’s price cap will see electricity in the home rise to 52p per kWh and the daily standing charge up to 46p. Some public chargers could increase to £1 per kWh, which would see the Tesla Model 3 standard range costing around 21p per mile to run.

Karl Howkins, Managing Director of SOGO mobility, said: “Drivers shouldn’t be penalised for making greener mobility choices. We need the issue to be urgently addressed by the HMRC ahead of the expected increases in electricity costs in October and next year.

“We have seen rapid growth in the adoption of electric vehicles over the last 12 months, as has the wider UK,  and it would be wrong to see this momentum damaged by something so easily fixed.”

SOGO provides a range of services to help drivers move to electric vehicles (EVs). It has partnered with Right charge to help drivers identify and install the best charging unit for their type of usage and budget. The partnership also enables drivers to access government grants and green electricity tariffs, along with smart billing options that enable EV charging to be split from the driver’s household bill to make reimbursement for company car mileage easier.

The flexible leasing company has also teamed up with the bp Target Neutral service, which helped SOGO customers offset over 5,200 tonnes of carbon in its first 12 months.

SOGO has grown rapidly in the past 12 months with its ultra-flexible approach that provides leasing from one to 12 months for cars and LCVs.

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Chris Wright

Chris Wright

Chris Wright has been covering the automotive industry nationally and internationally for 30 years. Following spells with consumer titles he became News Editor of Automotive Management (AM), Editor of Automotive International, International Editor for Detroit-based Automotive News, and Editor of Dealer Update. He has also co-authored several FT Management Reports and contributes regularly to Justauto.com

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