TfL have NOT set up cost caps on e-taxi chargepoints, confirms Mayor of London

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London’s transport regulators have not set cost caps on e-taxi rapid chargepoints, but have done ‘everything possible’ to ensure pricing remains fair, says Mayor of London.

Earlier this summer electric taxi drivers in the capital voiced their growing concerns over the increasing price of electricity to charge their green black cabs.

The frustrations followed a Shell Recharge announcement that could see cabbies spending 45p per kWh to charge. This prompted some cabbies to suggest they ‘might as well drive on petrol’ and that charging is ‘becoming unviable’.

The increase in prices followed the Government 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.

Keith Prince, a London Assembly Member, asked the Mayor whether he had agreed to any cost cap with electric chargepoint suppliers, to ensure reasonable fees for taxi drivers using dedicated e-taxi chargepoints.

Sadiq Khan said: “I recognise the economic impact the pandemic has had on the taxi trade, alongside many other professions across London.

“Transport for London (TfL) has not set cost caps with suppliers for its rapid charge points, including those that are dedicated to e-taxis, as these are operated on a commercial basis via the TfL procurement framework.

“However, TfL has done everything possible through this framework to make sure fair and reasonable pricing is applied. TfL rapid charge points generally cost between 25-32p per kilowatt.”