Closed petition Urgently review Advisory Electricity Rate (AER) for fully electric company cars

Closed on 20 December 2022

Since the energy price cap increase, domestic electricity costs ~28p/kWh. If a car’s efficiency is 2.8-4.0 miles/kWh, the cost per mile is 7p-10p. The average cost at a public charging point is 44.5p/kWh (~11p-16p per mile). HMRC’s AER is just 5p per mile. HMRC should urgently consider raising this.

This shortfall discourages use of fully electric company cars. The Government should urgently review the current AER. It should also commit to reviewing the AER quarterly in future, as they do for fossil fuels in the Advisory Fuel Rates, and ensure the AER is not based on the lowest available domestic overnight tariff. For example, it would be fairer if the AER were set at the mid-point between the average of the cost of charging on a domestic tariff and on public rapid charging points.