Portsmouth International Port has asked the UK government to reduce tax on electricity supply to ports for shore power.
The request comes in response to a recent announcement by UK Prime Minister Andy Burnham that domestic electricity bills will not be subject to value added tax (VAT).
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.”
The port points out that it has introduced an impressive, industry-leading, UK-first, environmentally-pioneering shore power system, but operators are taking a financial hit to use it, as electricity costs significantly more than their usual diesel-based fuel.
Sellers continued: “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.”
Image: Portsmouth wants the cost of shore power to be cut by 20% in line with domestic electricity prices (source: Portsmouth International Port)
