How should you set a public EV charging tariff at your business?

Build your tariff from electricity costs, charging losses, operating fees and realistic energy sales, then test whether the margin covers fixed costs. Show drivers the maximum charging price before they start. HMRC's current policy treats public charging electricity as standard rated, and the standard VAT rate is 20% [S3] [S4]. Check your tax position. Checked October 2026.

Last checked 16 October 2026

How do you calculate a public charging tariff?

Start with the cost of supplying a paid charging session, then test the price against realistic use. Your energy contract price is only one input. Request the payment, software, maintenance, communications and settlement charges from the proposed operator. Decide which costs are fixed and which grow with energy sold. Keep the source document and tax basis beside each input so you can update the calculation when a contract changes.

Kilowatts (kW) measure power; kilowatt-hours (kWh) measure energy. You normally model unit charging revenue against energy delivered, not the charger nameplate multiplied by every opening hour. Driver demand, connected time and vehicle charging limits need their own assumptions. Read how much chargers earn before treating available power as sales.

For a simple operating screen, use: annual contribution = delivered kWh × (driver price excluding VAT − electricity cost per delivered kWh − variable fees) − annual fixed costs. This gives operating contribution before capital recovery and the other exclusions you state. Add a clearly identified capital-recovery target if that is part of the commercial objective. Do not present operating break-even as investment payback.

What could low, mid and high use mean for your price?

The following is an illustration, not a quote. All commercial and technical inputs are assumptions; none is a claimed market average or supplier offer. Assume a VAT-registered business using recoverable-input costs excluding VAT. HMRC treats public charging electricity as standard rated; the standard rate is 20%. Check the treatment with your accountant before applying this model. [S3] [S4]

Electricity cost per delivered unit is 25p ÷ 90% = 27.78p, rounded. Contribution per delivered kWh is therefore 50p − 27.78p − 3p = 19.22p. Annual energy is sessions per day × 20 × 365. This model assumes each session can be served; a site survey must assess that separately.

Redo the mid operating break-even as 27.78p + 3p + (£1,200 ÷ 14,600 × 100) = 39.00p excluding VAT, rounded. Multiply by 1.20 for the illustrative customer price. These are operating floors under the assumptions, before capital recovery, host rent or revenue share, finance, tax, business rates and unpriced work. Include actual items that apply; their exclusion here does not establish that your site avoids them.

How much will drivers pay without choosing another location?

There is no universal willingness-to-pay number in this guide. Compare nearby options serving the same dwell time, not just the same postcode. Record the date, access hours, charging speed, parking charge and payment route for each comparison. Ask prospective users what energy they need during a normal visit and what would make the service useful. Keep that demand evidence separate from the price needed to cover your costs.

Test a lower price with lower and higher volume assumptions rather than assuming a discount creates demand. For example, in the illustration, reducing the VAT-inclusive driver price from 60p to 54p reduces net sales price from 50p to 45p. At the same mid-case volume, annual contribution falls by £730: 14,600 × £0.05. That calculation says nothing about whether additional customers will arrive.

How should prices, parking and payment routes be shown?

Regulation 11 requires the maximum charging price before the session in pence per kWh. Fixed charging fees belong in that maximum unit-price presentation; separate parking fees charged by a third party are distinguished in the rule. [S1] Check the display and any idle or parking fee with your solicitor, particularly if several parties collect payments. Read the public charging checklist.

Government guidance allows price information on a separate device without a pre-existing contract to view it. It also addresses roaming mark-ups and dynamic prices. [S2] Request a driver walkthrough for each payment route. Compare the sign, payment page, charging screen and receipt. A visible price board can help drivers understand the offer, but your solicitor should assess the whole arrangement against the rules. Use the public charging price guide to structure a comparison with other tariffs.

Who should control discounts and future tariff changes?

Set out who can change the price in fully funded, part funded and self funded contracts. Ask whether your consent is needed, how notice is given and how the host share is calculated after discounts. Request a settlement example showing VAT, payment deductions, electricity costs and the remaining host amount. These are contract questions; do not assume that owning the land gives you price control.

For staff or guest discounts, document eligibility and the separate price shown to that driver. Check access classification through public versus private charging and refer staff tax questions to workplace charging tax rules and your accountant.

What should you do next?

Bring your energy contract, proposed operating fees, likely session demand and price-control requirements. Ask for a low-use calculation and a sample settlement statement. Read how we work before enquiring.

Piggy Pineapple Ltd operates this referral service. We refer enquiries to installer partners and may be paid a fee. Our owner holds shares in at least one partner. Before sharing your details, we name the proposed partner and disclose any shareholding our owner holds in it. You can get matched with an installer that covers your area.