Many fleet EV drivers short-changed by AER, TMC says
31 March 2021
Author: Sean Keywood
Drivers of electric fleet vehicles cannot cover the cost of charging using the recommended Advisory Electric Rate (AER) for mileage reimbursement, according to fuel management company TMC.
The rate, which operates alongside the AFR for petrol and diesel vehicles, is set by the UK Government at 4p per mile.
However, TMC argues that if the cost of public charging is factored in, in order to accommodate longer business journeys, the only car currently on the market that would be covered by the rate is the Renault Twizy quadricycle.
In addition, even if charging is only done at home, TMC says the cost of charging larger cars can be up to 65% higher than the AER.
TMC chief data officer Paul Miers said: "If employers want to encourage EV take-up in company fleets, they need to consider the actual cost per mile of using those cars.
"Simply paying the current AER of 4p per mile will leave company drivers out of pocket, particularly if they rely on the public charging network to be able to complete their journeys.
"There are also seasonal factors to consider too. In winter, the 15% real world [battery usage] adjustment is likely to be an under estimation, putting even more upward pressure on the actual cost per mile."