However, the government failed to rule out introducing a new tax as a way of replacing almost £30bn of revenue it stands to lose in fossil fuel taxes as petrol and diesel cars are replaced by electric models.
Under The Electric Vehicles (Smart Charge Points) Regulations 2021, that come into force today, all newly fitted EV charge points must have smart functionality.
This will allow for the potential of 'electricity rationing' by deciding when EVs can be charged, helping to avoid overloading the National Grid at peak times.
It will also enable EV charger usage to be billed at higher electricity prices than domestic electricity by operating with a dedicated smart meter.
Currently, petrol and diesel drivers pay fuel duty at 52.95 pence per litre, which brought in £28bn for the government last year. Petrol and diesel are also subject to 20 per cent VAT. By contrast, electric car users pay no fuel duty, and VAT on domestic electricity is only charged...