TAXI CHARGING SUBSIDIES: LTDA approach TfL for help to reduce spiralling electric chargepoint costs

The London taxi industry has asked for help from regulators Transport for London (TfL) to keep dedicated electric chargepoint costs at an affordable level in the capital.

The Licensed Taxi Drivers’ Association (LTDA) has approached the capital’s transport regulators for a subsidy to be applied at chargepoints. It has been proposed that with TfL’s help, cabbies would pay 75% of the standard rate to keep costs down while electric prices spiral out of control.

Cabbies using bp Pulse contactless Rapid Charge Points (RCP) will now cost 65p per kWh. Subscribers can access the energy for 44p kWh and a registered user 55p per kWh.

The latest estimated energy forecast for April 2023 could top £7,000 for the average household and is likely to drive up the costs for electric vehicle (EV) owners.

There are continued calls for Government to drop VAT on public chargepoints to level the playing field between those that have access to home chargers and those that rely on public chargepoints. Anyone charging at home pays a reduced 5% VAT charge based on domestic use rates. Those charging on public points pay 20%.

One taxi driver questioned the current price increases offered by bp Pulse on social media. @taxidonny said: “The taxi trade has invested £300million in non polluting vehicles, has anybody anything to say about the present price gouging, it’s a 400% increase since EV taxis were mandated?”

An LTDA spokesperson said: “The fixed price tariffs all ended, they are now on commercial RCP rates. We have asked TfL to consider funding a subsidy to keep taxi RCP rates at 75% of standard rates.”

The latest energy prices could also spark a SECOND tariff review in the capital. On 9 March 2022, the TfL Finance Committee met to approve a new black cab taxi tariff to help cabbies meet rising costs.

Taxi fares in London increased 5.51% during daytime tariff rates in a bid to help the industry cover rising fuel and running costs.

Black cab prices between 10pm and 5am were frozen, but amendments to the starting meter rose by 60p across all tariffs.

The committee were however concerned that if fuel prices continued on its rapid growth the tariff increases agreed could be ‘overtaken by events’. The panel agreed to review and report on how fuel costs are impacting the taxi industry in six months time.

The rate of inflation currently sits at 10.1 percent and the cost of fuel and electric has risen rapidly since the London tariff consultation was concluded on 2 February.