Source · Select Committees · Transport Committee
Recommendation 16
16
Accepted in Part
The Government must explain how it plans to tackle the potential price differential faced by...
Recommendation
The Government must explain how it plans to tackle the potential price differential faced by people who cannot charge their vehicles at home and are compelled to rely on on-street public charge points. It could do this by: a) protecting the consumer from excessive costs where there are risks of local monopolies emerging; and b) addressing the discrepancy between the 5% VAT incurred on electricity at home compared with the 20% VAT incurred at public charge points. (Paragraph 72) Managing energy demand and smart charging
Government response summary AI-generated
The government partially accepts the recommendation, recognizing the price difference for those without home charging and emphasizing the importance of competition in the market. However, the provided text does not explain specific plans to tackle the issue or address the VAT discrepancy.
Summary of the government's response below — read the verbatim text to verify.
Government Response
Accepted in Part
HM Government · verbatim extract
Accepted in Part
The Government partially accepts these recommendations. We recognise the difference in prices between those who can charge at home and those who charge on-street. We believe that EV drivers should be able to use fairly priced and accessible charging whether they have access to off-street charging at home or not. As recognised by the Competition and Market Authority in their study of this market, it is important that there is competition in the market and we will continue to encourage this as part of our framework, which will be outlined in the forthcoming Electric VehicleInfrastructure Strategy. New technology, such as smart public charging, could reduce costs for consumers who do not have access to off-street charging and associated tariffs. As the market is still in its infancy, we are continuing to keep a close eye on how it evolves. While equalising VAT rates would reduce the differential, it would not bring about parity in overall price between private and public charging.
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