Sogo joins call for increased AFR for EVs

Sogo has joined the call for an increase in the advisory fuel rates (AFR) for electric vehicles (EVs), as rising energy prices leave drivers out-of-pocket.

The current advisory electricity rate (AER) is 5p per mile and is based on the 2021 average UK electricity price of 18.9p/kWh.

In October, the standard variable rate for electricity in the home will rise to 52p/kWh and the daily standing charge up to 46p. Some public chargers could increase to £1/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.”

The fleet industry is hoping that real world analysis of the cost of fuelling an EV will persuade HMRC to overhaul the AER.

Having amassed almost 100 case studies, a delegation from the Association of Fleet Professionals (AFP) and the British Vehicle Rental and Leasing Association (BVRLA) are pressuring HMRC officials to increase the rate.

The AER equivalent for internal combustion engine (ICE) vehicles, AFRs, are reviewed every three months. The most recent rates take effect from September 1.
 

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