Clarity on home charging!
Minister confirms use of CREG tariff
According to the Parliamentary Report, ref. CRIV 56 PLEN 006*1, Minister Vincent van Peteghem has clarified that a circular is being drafted to address concerns surrounding the reimbursement of electricity costs for company cars. He emphasized that the CREG tariff will be tolerated as a solution without employers fearing tax increases.
PRACTICAL CHALLENGES FOR EMPLOYERS
To recap, the tax administration's stance was that the actual electricity cost of home charging per employee should be applied for reimbursement. However, this reimbursement presents practical challenges for employers. How can they determine each employee's actual electricity costs? Electricity costs vary due to factors such as location, time of use, and tariff type (fixed, variable, or dynamic). For many employers, this creates an administrative nightmare.
To recap, the tax administration's stance was that the actual electricity cost of home charging per employee should be applied for reimbursement. However, this reimbursement presents practical challenges for employers. How can they determine each employee's actual electricity costs? Electricity costs vary due to factors such as location, time of use, and tariff type (fixed, variable, or dynamic). For many employers, this creates an administrative nightmare.
APPROVAL OF THE CREG TARIFF
In response to a parliamentary question on September 26, 2024, Finance Minister Vincent Van Peteghem reassured employers. He announced that a circular would clarify reimbursement for charging costs, temporarily allowing companies to base home charging reimbursement on the average electricity price. Therefore, the tax authorities will accept the use of a specific CREG tariff. The CREG tariff*2, published by the Electricity and Gas Regulatory Commission (CREG), is an average electricity rate published monthly and varies by region. This CREG tariff should not be confused with the VREG tariff. CREG is a national Belgian entity, while VREG operates in Flanders. Employers can use the CREG tariff for home charging reimbursements, provided this is clearly stated in their car policy.
In response to a parliamentary question on September 26, 2024, Finance Minister Vincent Van Peteghem reassured employers. He announced that a circular would clarify reimbursement for charging costs, temporarily allowing companies to base home charging reimbursement on the average electricity price. Therefore, the tax authorities will accept the use of a specific CREG tariff. The CREG tariff*2, published by the Electricity and Gas Regulatory Commission (CREG), is an average electricity rate published monthly and varies by region. This CREG tariff should not be confused with the VREG tariff. CREG is a national Belgian entity, while VREG operates in Flanders. Employers can use the CREG tariff for home charging reimbursements, provided this is clearly stated in their car policy.
EEVEE MOBILITY SUPPORTS TECHNOLOGICAL PROGRESS
The minister also acknowledged that current technology does not always make it easy to accurately and easily measure employees' actual electricity consumption. Measuring home consumption using a system that relies on charge pass registrations is not 100% reliable and is susceptible to fraudulent misuse. Another option is to use submeters, which are installed alongside the existing electricity meter at employees' homes. These meters can separately record the electricity used to charge a car. However, this negatively impacts the cost and practicality of installation, as there is often no space for such additional hardware. "It is an extensive and often impossible task," confirmed Bart Vannoppen, technological advisor at Volta, in an article in De Tijd3. Mr. Vannoppen highlighted an additional disadvantage: "Since the new meter is installed next to the original meter, neither meter sees the total electricity flowing through the connection. This prevents any existing home energy management system from accurately viewing total electricity, making load balancing impossible." This essentially eliminates the practicality of submeters.
On the other hand, Kathleen Veugelen, a consultant at KPMG, notes that electricity reimbursement also applies to small and medium-sized enterprises. "It seems difficult to install submeters in all cases. Fortunately, there are other technological solutions, such as innovative apps."
This is where EEVEE Mobility’s driver app and online fleet dashboard come in. EEVEE Mobility enables precise measurement of the actual electricity consumption of company cars, using the vehicle’s onboard computer data. This solution offers every employer the most sustainable and cost-effective way to monitor electric company car energy consumption and accurately reimburse employees for home charging. Using authentic OEM vehicle data, this solution meets strict standards to prevent fraud and misuse of charging systems at employees’ homes..
The minister also acknowledged that current technology does not always make it easy to accurately and easily measure employees' actual electricity consumption. Measuring home consumption using a system that relies on charge pass registrations is not 100% reliable and is susceptible to fraudulent misuse. Another option is to use submeters, which are installed alongside the existing electricity meter at employees' homes. These meters can separately record the electricity used to charge a car. However, this negatively impacts the cost and practicality of installation, as there is often no space for such additional hardware. "It is an extensive and often impossible task," confirmed Bart Vannoppen, technological advisor at Volta, in an article in De Tijd3. Mr. Vannoppen highlighted an additional disadvantage: "Since the new meter is installed next to the original meter, neither meter sees the total electricity flowing through the connection. This prevents any existing home energy management system from accurately viewing total electricity, making load balancing impossible." This essentially eliminates the practicality of submeters.
On the other hand, Kathleen Veugelen, a consultant at KPMG, notes that electricity reimbursement also applies to small and medium-sized enterprises. "It seems difficult to install submeters in all cases. Fortunately, there are other technological solutions, such as innovative apps."
This is where EEVEE Mobility’s driver app and online fleet dashboard come in. EEVEE Mobility enables precise measurement of the actual electricity consumption of company cars, using the vehicle’s onboard computer data. This solution offers every employer the most sustainable and cost-effective way to monitor electric company car energy consumption and accurately reimburse employees for home charging. Using authentic OEM vehicle data, this solution meets strict standards to prevent fraud and misuse of charging systems at employees’ homes..
CONCLUSION
For companies seeking an efficient solution for reimbursing home charging costs for company cars, the minister's circular offers temporary relief by allowing the use of the CREG tariff, thus avoiding administrative burdens and potential tax increases.
However, practical challenges remain, such as accurately measuring each employee’s electricity consumption. EEVEE Mobility offers an effective answer with an innovative solution that allows precise measurement of company car consumption without additional hardware. This provides companies with a straightforward, cost-efficient way to monitor and reimburse charging costs, with a focus on fraud prevention.
EEVEE Mobility thus provides a sustainable, forward-looking solution that helps both national and international companies optimally control the energy costs of electric company cars.
For more information, visit EEVEE Mobility
Interested? Contact Us
For companies seeking an efficient solution for reimbursing home charging costs for company cars, the minister's circular offers temporary relief by allowing the use of the CREG tariff, thus avoiding administrative burdens and potential tax increases.
However, practical challenges remain, such as accurately measuring each employee’s electricity consumption. EEVEE Mobility offers an effective answer with an innovative solution that allows precise measurement of company car consumption without additional hardware. This provides companies with a straightforward, cost-efficient way to monitor and reimburse charging costs, with a focus on fraud prevention.
EEVEE Mobility thus provides a sustainable, forward-looking solution that helps both national and international companies optimally control the energy costs of electric company cars.
For more information, visit EEVEE Mobility
Interested? Contact Us
