Industry bosses call on Chancellor to cut VAT on public EV chargers
Electric car chargepoint operators have urged the Chancellor to cut VAT on public charging following price increases.
Campaign group FairCharge has appealed to Chancellor Kwasi Kwarteng to cut the VAT on public chargepoints, which currently sits at 20 per cent, to five per cent, in line with the rates EV owners pay for domestic charging.
An open letter published by FairCharge has been backed by 23 industry bosses, including all major chargepoint operators. Osprey Charging chief executive, Ian Johnston, has supported the movement following its decision to increase its prices to £1 p/kWh as a result of rising electricity prices.
Ian Johnston, CEO of Osprey Charging, published a short message on YouTube to explain the decision: “The current sky-high energy prices are well documented and there are news headlines everyday about the impacts of the energy crisis. The government has announced a £150 billion support scheme for homes and for businesses. However, as yet, we have no details on this scheme and indeed no timeline on when we’ll have those details. Unlike for residential customers, to date there has been no cap on the price that businesses pay for their electricity. In recent weeks, the price of electricity has risen to more than three times what it was this time last year.
“This doesn’t just affect EV charging networks but also local shops, cafes, pubs and factories across the UK. Therefore, I’m sure I won’t be the first CEO of an independent business that is placed in this difficult position. Until we know more about the government’s support scheme, we have no choice but to increase our pricing. Of course, we want to be able to reduce these prices if we are able to do so. We understand how hard things are for our customers right now and we look forward to giving you more positive pricing news in the year to come.”
The Government has since confirmed a new ‘Energy Bill Relief Scheme’ that will provide a discount on wholesale costs for all non-domestic customers from October, which will only be in place until March.
The letter from FairCharge was published ahead of the Chancellor’s mini-budget, which is set to be revealed today (Friday 23rd September).
In the letter, the group claimed the current situation would halt the rollout of electric vehicle charging infrastructure and discourage people from switching to EVs: “We write to highlight the severe threat that high and volatile electricity costs are having on the Government’s stated ambitions to decarbonise transport with the switch to electric vehicles and your ambitious plans for the development of a comprehensive public charge point network.
“One quick solution, that is totally within your control, is to heed the Fair Charge campaign’s call for an immediate cut in VAT on the electricity delivered by our networks. Such a cut would immediately feed through to a reduction in prices. Further, it would show the strength of the Government’s continued commitment to transport decarbonisation.”
