New TMC data has shown how the electric vehicles in the market today compare against the government reimbursement rate of 9p per mile.
TMC EV Rates are a viable reimbursement alternative to the AER, providing you with a real world cost per mile for each electric car or van individually.
Our rates assume a home charging tariff, as does the AER, but differ in the fact that it considers the miles per kWh per vehicle rather than taking an average for all. The miles that electric vehicles are taken to achieve per kWh varies, sometimes drastically, meaning that using these figures are important in gaining a fair and representative reimbursement value.
From 920 total electric car derivatives, only 118 come out with a running cost and a rate of 9p or less, the AER value. The average cost per mile of them all comes to 10.5p which is certainly closer to the AER than has been the case in the past.
It’s widely discussed in the industry that there is work to be done when it comes to vans and our data continues to support that. From a total of 364 van derivatives, none come out with a cost per mile of 9p or less. The average cost per mile for all vans according to TMC comes to 17.9p, almost double that of the government rate.
The rates are based on a home charging tariff of 34p per kWh and incorporates a small adjustment to account for real world driving.
The TMC EV Rates also have the ability to use a blended tariff to consider the necessity (for many) of charging on the public highway at increased prices. TMC were able to come up with some interesting data points with this in mind.
Based on a tariff of 40.5p per kWh as an example, blending 75% of home charging at 34p and 25% public charging at 60p, no cars or vans whatsoever achieve a running cost of 9p or less. This signifies the impact that increased charging prices can have on the overall running costs of electric vehicles.
Using data gathered by the Society of Motor Manufacturers and Traders with regards to the best selling electric vehicles in the UK in 2023, we have provided the EV rates that our data suggests for the top three cars.
These rates are affected by an introduction of public charging at an increased cost as described above.
Barry Monks, UK Sales Director at The Miles Consultancy, said:
“The disparity in running costs of electric vehicles is a known and valid issue for many fleets. As a data led business, our ability to conduct analysis at a granular level allows us to deliver fair and equitable reimbursements for our clients and support the much needed transition to cleaner fuel models.”
To get the full list and find out how the EVs in your fleet can benefit from TMC’s expertise, just get in touch! Give us a call, fill out the contact form or send us an email.
