Response to cut in VAT for electricity bills

In response to the Prime Minister’s Labour Party Conference speech, in which he confirmed the removal of VAT from household electricity bills, Portsmouth International Port director Mike Sellers said:

“We support calls to end VAT on energy household bills, but unfortunately this does not go far enough to support maritime decarbonisation. We’re also calling for the change to be applied to electric shore power provision at ports. 

“Sky-high bills are stifling ports’ ability to electrify, which is crucial to be able to look after the health of residents who live nearby, and in efforts to help the government meet its maritime decarbonisation goals. Recognising shoreside electricity as a marine fuel and removing VAT would be a quick measure to help address this issue.

“As a local authority owned port every penny counts towards the council’s budget, and this would be a step towards helping us put more money back into the city. We have an impressive, industry-leading, UK-first, environmentally-pioneering shore power system, but it’s expensive. So expensive that operators are taking a financial hit to use it, as electricity costs millions of pounds more than their usual diesel-based fuel.

“The announcement today from the Prime Minister is a welcome step forward but needs to go further and we want to be part of the conversation so we can more easily meet our sustainability ambitions and contribution to essential services, while also protecting the health of city residents.”

Read more about Portsmouth International Port’s shoreside power system, and calls to action to enable UK-wide roll out of electrification, in the new white paper Plugging in.