Case studies needed to increase advisory electricity rate (AER)

A call for case studies that can be used to support a push for an increase in the current Advisory Electric Rate (AER) has been made by the Association of Fleet Professionals (AFP) and the British Vehicle Rental and Leasing Association (BVRLA).

The two organisations are in joint discussions with HMRC to build a case to raise the AER – used to reimburse electric company car drivers for the cost of charging – from the current 5 pence per mile (ppm).

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

“During our meetings, HMRC has 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, Hollick says that these will show real world examples of drivers who are out of pocket from the 5ppm AER in as many diverse job roles, geographies, income demographics and electric vehicle models as possible, helping to strengthen its argument.

“We’d urge fleets to send in their examples, meeting a deadline of the end of June,” he added.

Toby Poston, director of corporate affairs at the BVRLA, says that the collaboration between the BVRLA and AFP on topics such as this is “vital” in having the industry’s voices heard and strengthens its 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,” he said.

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 % ): e.g. 20% home, 40% work and 40% public network
• Average charging cost (£ per kWh: home , work and public): e.g. £0.21 home , £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.

Examples should be sent to administration@theafp.co.uk and entitle your email “AER evidence” by the end of June 2022.

Fleet News is also running a poll on what fleets think the AER should be to reflect the true cost of driving an EV, cast your vote here.

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