There’s been a lot of noise recently about the advisory electric rate for electric vehicles as the government faces ongoing pressures to review the current guidelines.
Employers are being advised to reimburse their employees 4p per mile for charging their electric vehicles, but this rate is widely short changing employees.
Our friends at the AFP are campaigning to increase the 4 pence AER rate, because they believe the current rate is not fit for purpose.
How do we know the AER is inaccurate?
The cost of charging an electric vehicle (EV) depends on the vehicle itself and of course where it’s being charged. It’s cheaper to charge an EV at home, as opposed to charging the vehicle publically. The efficiency of the vehicle makes a difference too, for example a Tesla model 3 will go a lot further using the same amount of energy to a Jaguar iPace or an electric van.
When charging at home, there’s also the driver’s electricity tariff rate to take into consideration. You could have two drivers with the exact same vehicle doing the same mileage who will see a difference in cost if their home electricity tariff rates differ.
In addition, the cost to charge in public can be anything from twice the cost of charging at home, to more than 5 times the price.
For example, a Renault Zoe charged at home for £0.15 per kWh would likely cost around 4.3pence per kWh to run, but in winter when the battery is less efficient, that cost might be closer to 5 pence.
For an electric van, the costs could be significantly more. A fully laden van might only get 2 miles per kWh, leading to a cost per mile figure closer to 8 pence when charged at home. If you were to charge only in public that cost could be more than 20 pence per mile.
A simple solution to this issue is for the employer to pay their employees accurately and this is achievable with the Mina Solution.
How does the Mina Solution offer accuracy?
We’re the only payment solution for EV charging who is able to accurately pay drivers for the cost of charging their EV at home and on the road.
We integrate with the driver’s home chargepoint and energy supplier to calculate the exact cost of charging their EV at home, and for drivers who need to top up on the go, our Chargepass gives them access to thousands of public charge points across the UK using one single RFID card.
At the end of the month, the fleet owner receives one single invoice which covers their entire fleet’s charges. There’s no expense claims for drivers to submit or payroll admin for employers. It’s simple, accurate and easy for employers and employees.
Mina CEO and Co-Founder, Ashley Tate comments: “I don’t believe it will ever be possible to define a fair AER rate for electric vehicles. The difference between public charging and home charging is typically double, and in some cases it could be five times the difference. These extremes don’t exist with Petrol/Diesel.”
“The amazing BIK benefit is helping to offset the difference, but that will not last forever.”
“In my opinion the only fair way is to pay for the actual cost of charging, whether at home or on the road, which is why we created the Mina Solution.”