Octopus Energy Launches Automated Reimbursement for Company EV Charging

Octopus Energy, the UK’s largest energy supplier, has introduced a new system to automatically invoice employers for the cost of employees charging company electric vehicles (EVs) for business travel – a service extended even to companies that aren’t Octopus customers. This addresses a growing need for simplified expense management as EV adoption rises.

The Cost of Charging: Home vs. Public Networks

Charging at home remains the most economical option for EV drivers. Currently, Ofgem caps rates at 27p/kWh, while Octopus Energy and other providers offer off-peak rates as low as 7p/kWh [Octopus Energy EV Chargers]. This contrasts sharply with public charging costs: DC quick chargers average 76p/kWh, and slower units average 54p/kWh, according to recent data from Zap-Map.

To illustrate the savings, Octopus notes that a typical EV consuming 3.5 miles per kWh would cost around 22p of energy per mile. This is comparable to approximately 27mpg in a petrol car, though many EV journeys incorporate home charging.

HMRC Mileage Rates and Existing Challenges

Current mileage rates approved by His Majesty’s Revenue & Customs (HMRC) have been criticized for not accurately reflecting the diversity of EV charging costs. HMRC’s advisory electric rates (AERs) are set at 7p per mile for home charging and 14p for public charging, regardless of vehicle size. The 7p/mile rate often overcompensates drivers using low overnight rates, while the 14p/mile rate can exit drivers short when using rapid chargers.

Employers can adjust these rates, but risk potential tax penalties for the company or the driver if the adjusted rates don’t demonstrably reflect actual costs.

How Octopus’s Reimbursement Scheme Works

Octopus’s new scheme aims to bypass these complexities. Drivers using a compatible smart charger simply select whether the energy used is for business or personal travel when plugging in. If it’s for business, the cost is credited back to their account, and their fleet manager is invoiced directly.

Notably, drivers don’t need to be Octopus customers or utilize Octopus-branded chargers, but a compatible smart charger is required. A data connection and accurate energy usage reporting have been legally mandated for home chargers since 2022.

The Octopus Home Charging Reimbursement Scheme costs £9.50 per driver per month.

Collaboration with Rightcharge and Expanded Fleet Solutions

The system was developed in partnership with Rightcharge, which already provides similar fleet technology. This new reimbursement scheme is part of a broader “menu” of solutions within the Octopus Fleet portfolio. This includes access to the Electroverse network of 1.3 million charging points across 50 countries, expense cards for charging, meals, car washes, and tolls, and a range of chargers, solar panels, and batteries for homes and depots.

Available Home EV Chargers from Octopus Energy

Octopus Energy offers a range of compatible home EV chargers, including:

• Octopus Charge: Untethered (£949) or Tethered (5m cable) (£1,049)
• Ohme ePod: Untethered (£949)
• Ohme Home Pro: 5m cable from (£1,049), 8m cable from (£1,099)
• Hypervolt 3 Pro: 5m cable from (£1,099), 10m cable from (£1,199)

All chargers include standard installation and are compatible with the Intelligent Octopus Go tariff [Octopus Electric Vehicles Home Charging].