What are the taxes on charging electric cars?

What does the ESB charge per kilowatt hour for electricity to plug-in electric cars? And is the tax charge on this the same as for petrol or diesel fuel? And if not, why not?

Alan Wilkes (Wicklow)

Jan 2014 Filed under: electric cars

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Expert answer

Hi Alan,

Electric Ireland charges a standard 19.28 cent per kWh as of Jan 20th 2014, according to moneyguideireland.ie. Other suppliers charge more or less the same although there can be a variation of up to 3c per kWh. 

In terms of what is charged to charge an electric car, the energy companies make no distinction. The plug points are downstream of your electricity meter so it's counted as the same juice that goes into your fridge, dishwasher or vacuum cleaner.

The total amount of tax charged on your kWh amounts to about 11 per cent, including both VAT and Carbon Tax, according to Sustainable Energy Ireland. 

So, why is this so much lower in tax terms than the 50-odd per cent levied by various charges on pump fuel? Simple: expediency. On the one hand, the Government must be seen to be encouraging the use and development of electric motoring. On the other, there is currently no simple and reliable way to distinguish between electricity being pumped into your car's batteries and what's being used to light, heat and wash.

That said, you can sadly and safely expect that to change, rapidly, if electric car sales ever take off in a big way. The Government has been very careful and canny about making sure that improving vehicle economy hasn't eroded it's annual €1 billion+ tax take from petrol and diesel sales, so if battery cars start eating significantly into that, expect some form of battery levy or electron tax to be enabled tout suite.

Neil Briscoe - Complete Car Adviser
@neilmbriscoe