The HMRC advisory electric rate (AER) increased again on 1st March 2023, this time from 8p to 9p.
The over-riding feeling is ‘better than nothing’ but in reality looking at the bigger picture, nothing has really changed.
TMC data showed that the previous AER of 8p was not representative of all electric vehicle and their real-world running costs; many are left under-paid and some over-paid. The increase to 9p doesn’t change this.
Our current data for example, based on a tariff of 29p/kWh, has a third of electric vehicles running over 9p per mile. We also adjust by 15% to account for real world driving.
By incorporating just 25% of public charging at 60p/kWh, all but eight electric vehicles would run over 9p per mile.
The good news is that TMC can help with an alternative solution that better reflects real-world running costs and home/public EV charging prices. Actual cost or TMC EV Rates may be worth looking into.