Electric taxi drivers in the capital have voiced their growing concerns over the increasing price of electricity to charge their green black cabs.
The frustrations follow a Shell Recharge announcement that could see cabbies spending 45p per kWh as of next month. This has prompted some cabbies to suggest they ‘might as well drive on petrol’ and that charging is ‘becoming unviable’.
The increase in prices follows the Government recently clarifying that the “de minimis” provision does not apply to supplies of electric vehicle charging at chargepoints in public places, and therefore the VAT should be 20% rather than 5%.
Previously the reduced rate of VAT for supplies of small quantities of electricity, known as ‘de minimis’ has been applied for customers charging their vehicles with Shell.
However, the de minimis provision only applies if the supply of electricity is all of the following:
to a person’s house or building
less than 1,000 kilowatt hours a month.
According to a HMRC Policy Paper the de minimis provision does not apply to supplies of electric vehicle charging at charging points in public places. This is because these supplies are made at various places such as car parks, petrol stations and on-street parking, not to a person’s house or building. In addition, these supplies are not usually an ongoing supply to one person where the rate of supply can be calculated.
The planned price increase passed on to Shell Recharge customers will begin between 1-8 July.