EV Pulse – UK Fleet Finance Briefing
Mid August 2025
TL;DR (For busy fleet managers)
New Electric Car Grant (ECG): now live. £1,500–£3,750 off eligible EVs ≤£37k. First models confirmed 5 Aug; a further 13 models added days later. Point‑of‑sale discount handled by manufacturers. Early evidence suggests fleet and salary‑sacrifice orders qualify. (GOV.UK)
Energy costs: Ofgem’s Q3 cap cuts the average domestic electricity unit rate to 25.73p/kWh (1 Jul–30 Sep). Home charging economics improve; next cap decision due 27 Aug. (Ofgem)
Public charging: Weighted PAYG averages in July were 52p/kWh (slow/fast) and 76p/kWh (rapid/ultra‑rapid); summer promos (e.g., InstaVolt £0.50–£0.54/kWh at selected sites until 31 Aug) can materially trim road‑fuel Opex. (Zapmap, Instavolt)
Liquid fuel: Pump prices rose again in July to 135.0p/l (petrol) and 142.85p/l (diesel), nudging ICE running costs higher. (RAC)
Tax & reimbursement: EV BiK is 3% in 2025/26 (rising one point p.a. to 5% by 2027/28). HMRC’s Advisory Electricity Rate is 7p/mile (since 1 Jun). EVs registered on/after 1 Apr 2025 now pay VED (£10 first year, then £195). (ACCA Global, GOV.UK)
Market context: BEVs took 21.3% of July registrations; still behind the 2025 ZEV‑mandate target of 28% for cars—policy pressure likely to keep incentives and discounting live. (SMMT, GOV.UK)
What changed in the last four weeks (facts)
1) Electric Car Grant: from policy to purchase order
Launched mid‑July; two bands: £3,750 (Band 1) or £1,500 (Band 2) on EVs ≤£37,000, based on sustainability criteria. Manufacturers apply; discount is automatic at point of sale. (GOV.UK)
5 Aug: first approved models (Citroën ë‑C3, ë‑C4, ë‑C5 Aircross, ë‑Berlingo) confirmed at £1,500. (GOV.UK)
Within days: 13 more models (from Nissan, Renault, Vauxhall) added at £1,500. Government says more are in the pipeline. (GOV.UK)
Early trade briefings: fleet and salary sacrifice orders are in scope for ECG (manufacturer‑applied). (GOV.UK)
2) Energy price cap (Q3 2025) – cheaper home charging right now
1 Jul–30 Sep average GB rates: 25.73p/kWh electricity; daily standing charge 51.37p. Ofgem’s next cap announcement (for Q4) is due 27 Aug. (Ofgem)
3) Public charging prices – averages and seasonal deals
July 2025 weighted PAYG averages: 52p/kWh (slow/fast) and 76p/kWh (rapid/ultra‑rapid). (Zapmap)
InstaVolt “Summer Special” at participating sites: £0.50/kWh via app/RFID (or £0.54/kWh contactless), until 31 Aug 2025. (Instavolt)
Typical posted tariffs on major networks: BP Pulse lists ~£0.59–£0.69/kWh for ultra‑fast (site‑dependent). (BP Pulse)
4) Petrol and diesel – creeping up
July ended with 135.0p/l petrol and 142.85p/l diesel (UK averages). Second consecutive monthly rise. (RAC)
5) Tax and policy checkpoints affecting fleet TCO
Company‑car BiK on EVs is 3% in 2025/26, 4% in 2026/27, 5% in 2027/28 (as set in Autumn Statement 2022; reconfirmed in professional guidance). (ACCA Global)
HMRC Advisory Electricity Rate for EV mileage reimbursement: 7p/mile (from 1 Jun 2025). (GOV.UK)
VED for EVs (from 1 Apr 2025): £10 first year; £195 standard thereafter. (GOV.UK)
6) Market signal
BEV share 21.3% in July (BEVs +9.1% YoY), while total market dipped 5%. SMMT notes ECG eligibility clarity as a near‑term lever. (SMMT)
2025 ZEV mandate for cars: 28% of new sales must be ZEV—an anchor for OEM pricing/incentives through year‑end. (GOV.UK)
What this means for fleets (implications / our take)
Procurement windows just opened wider.
If you’re refreshing at the value end of the EV market (≤£37k), ECG discounts of £1,500 are bankable today on a growing list of models, with more expected. Combine ECG with OEM tactical support and typical corporate discounts and you can lower monthly rentals materially—especially on salary‑sacrifice where the 3% BiK keeps net pay impacts low. For outright purchase, the ECG helps offset April’s new VED costs. (GOV.UK, ACCA Global)
Home vs public charging: lock in cheap kWh where you can.
At the Q3 cap’s 25.73p/kWh, a typical pool EV doing ~3.5 mi/kWh equates to ~7–8p/mile energy cost—nicely aligned with HMRC’s 7p/mile Advisory Electricity Rate (AER). For duty cycles that rely on rapid public charging, the July PAYG average (76p/kWh) implies ~22–25p/mile depending on vehicle efficiency. Policy: steer eligible drivers to home or depot charging by default; use rapid DC as an exception. (Ofgem, GOV.UK, Zapmap)
Exploit seasonal promos without adding friction.
Temporary offers such as InstaVolt’s £0.50–£0.54/kWh until 31 Aug can trim trip costs significantly on high‑mileage routes. Ensure your roaming cards/apps are enabled and brief drivers on where/when these rates apply; the delta vs a typical ~£0.69/kWh ultra‑fast tariff is meaningful at scale. (Instavolt, BP Pulse)
ICE running costs aren’t collapsing.
With petrol and diesel edging up in July, EV Opex advantages remain resilient for duty cycles that avoid premium‑priced DC. This supports business cases for EV‑first allocations where driver home‑charging is feasible (or where you can use workplace/depot AC). (RAC)
Budget, benefits and policy housekeeping (do these now).
Update TCO models with ECG, Q3 cap rates, current public tariffs, and the 7p/mile AER; re‑baseline lease/buy decisions and salary‑sacrifice communications. (Ofgem, Zapmap, GOV.UK)
Prioritise eligibility: short‑list vehicles now on the ECG list and maintain a watchlist for new approvals; this feeds into driver choice lists and spec freeze dates. (GOV.UK)
Check BiK messaging to drivers and HR: remind that EV BiK remains exceptionally low this year (3%), albeit stepping up gradually. This underpins high take‑up on salary‑sacrifice and user‑chooser cohorts. (ACCA Global)
Tighten charging policy: default to home/depot AC, whitelist best‑value public networks, and communicate promo windows (e.g., InstaVolt until 31 Aug). (Instavolt)
Infrastructure grants (SME, depots, staff parking): if you’re sub‑250 headcount or running multi‑site parking, ensure you’ve explored the EV infrastructure grant for staff and fleets to reduce capex on sockets and enabling works. (find-government-grants.service.gov.uk)
Macro watch to year‑end.
The 28% ZEV target for 2025 and the grant’s staged roll‑out mean continued pricing movement is likely through Q4: more models gaining ECG eligibility, and OEMs balancing mandate exposure with market demand. Ofgem’s 27 Aug cap announcement is your next key input for 2025/26 electricity budgets. (GOV.UK, Ofgem)
Data you can paste into your board pack
ECG (cars ≤£37k): £3,750 (Band 1) or £1,500 (Band 2). First 4 models (Citroën) on 5 Aug; +13 models (Nissan/Renault/Vauxhall) added shortly after. Point‑of‑sale application by OEM; salary‑sacrifice/fleet orders in scope. (GOV.UK)
Ofgem Q3 cap (Jul–Sep): 25.73p/kWh electricity; 51.37p/day standing charge; next update 27 Aug (for Oct–Dec). (Ofgem)
Public charging averages (Jul): 52p/kWh slow/fast, 76p/kWh rapid/ultra‑rapid (PAYG weighted). (Zapmap)
Promo: InstaVolt £0.50 (app/RFID)–£0.54 (contactless)/kWh at participating sites to 31 Aug 2025. (Instavolt)
Liquid fuel (end‑Jul): Petrol 135.0p/l; Diesel 142.85p/l. (RAC)
Tax: EV BiK 3% (2025/26) → 4% (2026/27) → 5% (2027/28). AER 7p/mile. EV VED from 1 Apr 2025: £10 first year, then £195. (ACCA Global, GOV.UK)
Market: BEV 21.3% of July registrations; 28% ZEV target for 2025 cars. (SMMT, GOV.UK)
Footnote on scope
All figures and policies are UK‑only and reflect updates in the last four weeks where indicated (with a few essential context items—BiK, AER, VED—set earlier this year but directly affecting current decisions).