EV tariff changes and EV charging tariff reimbursements explained
EV Tariff guide by Kyle Davey, EV Specialist, Fleetmaxx Solutions
As more businesses switch to electric vehicles, home charging has become one of the most convenient and cost-effective ways for drivers to keep their vehicles on the road.
However, there is a growing challenge that many fleet operators are unaware of.
What happens when a driver’s EV tariff changes?
It might seem like a minor detail, but changes to an EV charging tariff can have a significant impact on reimbursement costs. Without accurate tracking, businesses could be overpaying for home charging, while some drivers could be left out of pocket.
At Fleetmaxx Solutions, we help businesses simplify EV charging with the Rightcharge EV Charge Card and Business Home Charging solutions. One of the biggest advantages of the Rightcharge platform is its ability to automatically detect EV tariff changes and ensure accurate home charging reimbursements.
Contents
- What is an EV tariff?
- The hidden problem with EV charging reimbursements
- Why the HMRC Advisory Electric Rate can fall short
- Where traditional reimbursement platforms fall short
- How Rightcharge detects EV tariff changes
- Why accurate EV charging tariff reimbursements matter
- Business home charging made simple
- Frequently asked questions
What is an EV tariff?
An EV tariff is a specialist electricity tariff designed specifically for electric vehicle owners. These tariffs typically offer lower electricity prices during off-peak hours, encouraging drivers to charge their vehicles overnight when demand on the grid is lower.
Many popular EV tariffs offer charging rates as low as 7p to 9p per kWh during designated charging windows. This can dramatically reduce charging costs compared to standard electricity tariffs, which may cost 24p to 28p per kWh or more.
While this is great news for EV drivers, it creates new challenges for businesses reimbursing employees who charge company vehicles at home.
The hidden problem with EV charging reimbursements
Here is a scenario that happens across UK fleets every day.
A driver joins your fleet while paying around 26p per kWh on a standard variable electricity tariff. Your business reimburses their home charging costs using either the HMRC Advisory Electric Rate or an EV charging payment platform.
A few months later, they switch to a specialist EV tariff that charges just 8p per kWh overnight.
Their electricity costs have changed dramatically, but your reimbursement process remains exactly the same.
Now consider another driver whose fixed-rate energy contract expires. Their supplier moves them onto a higher-cost standard tariff at 28p per kWh.
Again, the driver’s charging costs have changed, but the reimbursement rate has not.
Both situations can result in inaccurate payments and unnecessary costs.
Why the HMRC Advisory Electric Rate can fall short
The HMRC Advisory Electric Rate, often known as AER, is designed to provide a standard reimbursement rate for employees charging company electric vehicles at home.
Currently set at 7p per mile, it is based on average electricity costs and typical vehicle efficiency figures.
The challenge is that electricity prices are no longer average.
A driver paying 27p per kWh and achieving 3.5 miles per kWh could have an actual charging cost of approximately 7.7p per mile.
Meanwhile, a driver charging overnight on an EV tariff at 8p per kWh may only be paying around 2.3p per mile.
That is a huge difference.
Using a single reimbursement rate across an entire fleet often means that somebody ends up paying more than they should.
Where traditional reimbursement platforms fall short
Many EV charging reimbursement platforms require drivers to submit an electricity bill when they first join the scheme.
The reimbursement rate is then based on the tariff information provided at that time.
The problem is that electricity tariffs change frequently.
Drivers switch suppliers.
Fixed contracts end.
New EV tariffs become available.
Time-of-use tariffs offer different electricity prices throughout the day.
Without ongoing tariff monitoring, reimbursement rates quickly become outdated. Fleet managers often have no visibility of these changes, creating additional administration and increasing the risk of inaccurate payments.
How Rightcharge detects EV tariff changes
Rightcharge solves this problem by connecting directly to participating energy suppliers.
Rather than relying on manually entered information, Rightcharge automatically tracks the actual EV charging tariff being used by the driver.
If a driver switches supplier or changes tariff, the system automatically detects the update.
This means businesses always reimburse based on the driver’s actual electricity costs.
The Rightcharge platform combines three important data sources:
- The charger records how much electricity was used.
- The vehicle verifies that the charging session relates to the correct company vehicle.
- The energy supplier provides live tariff information.
Together, these integrations create a complete and accurate picture of what each charging session actually costs.
This ensures fair reimbursement for drivers and greater cost control for businesses.
Why accurate EV charging tariff reimbursements matter
As more drivers adopt specialist EV tariffs, the difference between electricity rates can become significant.
Accurate reimbursement delivers several important benefits:
- Drivers receive exactly what they have spent on charging.
- Businesses avoid overpaying for home charging.
- Fleet managers reduce administration.
- Reimbursement calculations remain transparent and auditable.
- Businesses gain better visibility of EV fleet operating costs.
Most importantly, everyone can be confident that reimbursements are based on real charging costs rather than estimates.
Business home charging made simple
At Fleetmaxx Solutions, we supply both the Rightcharge EV Charge Card and Rightcharge Business Home Charging solutions.
This gives businesses a complete EV charging ecosystem that covers both public charging and home charging reimbursement.
Drivers benefit from simple, hassle-free charging, while fleet managers gain accurate reporting, automated reimbursements and complete visibility of charging activity.
As EV fleets continue to grow, having a smart reimbursement solution that understands changing EV tariffs and EV charging tariffs is becoming increasingly important.
If your business is looking for a smarter way to manage electric vehicle charging costs, Fleetmaxx Solutions can help.
Our EV charging specialists can guide you through the benefits of Rightcharge and show you how accurate tariff tracking can save time, reduce administration and improve reimbursement accuracy.
Contact Fleetmaxx Solutions today
Want to learn more about EV tariffs, EV charging tariffs and accurate home charging reimbursements?
Speak to the Fleetmaxx Solutions team today and discover how Rightcharge can simplify EV charging for your business.
Frequently asked questions
What is an EV tariff?
An EV tariff is a specialist electricity tariff designed for electric vehicle owners. It typically offers lower electricity rates during off-peak periods to encourage overnight charging.
What is an EV charging tariff?
An EV charging tariff is another name for an electricity tariff that provides discounted charging rates for electric vehicles.
Can EV tariff changes affect home charging reimbursements?
Yes. If a driver switches to a different electricity tariff, their charging costs can change significantly. Without tariff monitoring, reimbursement rates may no longer reflect actual charging costs.
How does Rightcharge detect EV tariff changes?
Rightcharge connects directly to participating energy suppliers and automatically detects tariff and supplier changes, ensuring reimbursement calculations remain accurate.
Does Rightcharge support time-of-use EV tariffs?
Yes. Rightcharge can track time-of-use EV tariffs and reimburse drivers based on the actual electricity cost at the time of charging.
Can Fleetmaxx Solutions help with home charging reimbursements?
Absolutely. Fleetmaxx Solutions supplies the Rightcharge Business Home Charging solution, helping businesses manage EV charging reimbursements accurately and efficiently.
