InstaVolt responds to continued rise in wholesale energy costs - 50p/kWh

[Stuart Wright]

• Increase in pricing from 45p/kWh to 50p/kWh across the network, effective from 22 February 2022
• Decision comes in response to the continued rise of wholesale energy costs

As a consequence of the continued rise in wholesale energy costs, we are announcing a price increase across all chargers from 45p/kWh to 50p/kWh with effect from 22 February 2022.

Our decision comes after the news of a record increase in global energy prices, the impact of which has resulted in an energy price cap rise of 54% from 1 April impacting households across the UK. The cost of gas has been facing significant upwards pressure, and now stands at more than five times its pre-pandemic levels, affecting consumers and businesses alike.

Consumers are now feeling the effects of this rise at home, with home charging tariffs being quoted above 35p per kWh. However, where home energy tariffs attract just 5% VAT, public charging continues to attract a 20% rate of VAT, meaning 8.3 pence per kWh sold on our network is passed to HMRC, and further compounds the inequality between drivers who can charge at home compared to those that cannot.

Adrian Keen, CEO of InstaVolt said: “The continued rise in energy prices is impacting business decisions across the industry, not least businesses who are being directly affected by wholesale prices.

“Our rapid growth strategy means we are exposed to the volatility of the energy market and even with a hedged energy strategy we are not immune to the high prices in the market. We continue to absorb much of the price increase that we’re seeing but cannot do so indefinitely.

“We've already invested over £42m in building and maintaining the InstaVolt network and we look to invest another £80m in the next three years, with an aggressive build plan in 2022 which brings rapid, reliable chargers into the UK infrastructure. This is as we respond to the demands of the EV market and align with government targets to reach our country’s climate change goals.

“We continue to support the reduction in VAT rates for public charging, which currently stands at 20%, versus the at home tariff VAT of 5%, discriminating against those who don’t have access to home charging. We are raising awareness to align the rates of both public and private charging, and if the reduction is successful, we will of course pass this benefit back onto the consumer with immediate effect.

“This is a difficult time for consumers and businesses nationwide, and I want to thank all of our customers for their ongoing support.”
Adrian Keen
CEO, InstaVolt

 

[Alb]

I tend to have a bit more sympathy with a company that is actually investing in the charging network.