Call goes out for EV case studies to support AER increase

A group of automotive industry bodies are appealing for case studies to support a push for an increase in the current Advisory Electric Rate.

The Association of Fleet Professionals (AFP) and the British Vehicle Rental and Leasing Association (BVRLA) are in joint discussions with Her Majesty’s Revenue and Customs (HMRC) designed to build a case to raise AER – used to reimburse electric company car drivers for the cost of charging – from the current five pence per mile (ppm).

Paul Hollick, AFP chair, explained: “Anyone who operates electric vehicles (EVs) knows that the current AER is inadequate, especially given recent dramatic increases in the cost of electricity.

“During our meetings, HMRC have indicated a willingness to review the rate but only on an evidential basis where there is a clear justification. In response, we are helping to identify better and more relevant data sources in addition to those currently used in setting the AER and part of that process means that we need to provide fleet case studies.

“Ideally, these will show real world examples of drivers who are out of pocket from the five ppm AER in as many diverse job roles, geographies, income demographics and electric vehicle models as possible, helping to strengthen our argument. We’d urge fleets to send in their examples, meeting a deadline of the end of June.”

Toby Poston, director of corporate affairs, added: “The collaboration between the BVRLA and AFP on topics such as this is vital in having our voices heard and strengthens our case to HMRC. Real world examples from AFP members and their drivers will bring our argument to life and underline why we need a review of AER.”

A specific format has been created by the AFP and the BVRLA and is shown below:

Your industry: e.g. transport services

Job role: e.g. sales rep

Car (make, model, type – sedan or hatchback/SUV/van): e.g Nissan, Leaf 30 kWh, hatchback

Car efficiency (miles per kWh): e.g. 4.1 miles per kWh

Location (county and rural/town/city): e.g. Yorkshire, town

Monthly business mileage: e.g. 800

Main reason for business mileage: e.g. visiting clients

Charging profile (home %, work %, public % [descriptor]): e.g. 20% home, 40% work and 40% public network [motorway]

Average charging cost (£ per kWh: home [tariff description], work and public): e.g. £0.21 home [fixed rate], £0 work and £0.61 public

Total charging cost per month (£):

Total reimbursement per month (£):

Shortfall under current AER (£):

Additional comments: e.g. the current AER has made my EV unaffordable for me and I am trying to swap out of it.

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