The Advisory Electricity Rate (AER) paid to reimburse company EV drivers for charging should be increased by HMRC, according to leasing company SOGO.

The AER is currently set at 5p per mile, a rate that has been in place since December last year.

SOGO is calling for a rise ahead of the increase in the energy price cost cap in October, which it says could see the cost of some public chargers increase to £1 per kWh, meaning a Tesla Model 3 Standard Range, for example, could potentially cost around 21p per mile to run.

SOGO managing director Karl Howkins 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.”