OFGEM Guidance: Hotels Selling Electricity to Electric Vehicle Drivers

We’ve shared a guide explaining the guidance for hotels selling electricity to electric vehicle drivers.

What is the OFGEM guidance for hotels and supply licences?

• Hotels can resell electricity supplied to them without requiring a supply license, provided it falls under Class B exempt supply rules.
• You can sell electricity under Class C exempt supply rules if hotels generate electricity on-site, such as with solar panels.
• EV charging infrastructure is not subject to Maximum Resale Price (MRP) regulations, unless a standard plug and socket are used instead of dedicated charge points.
• MID-compliant meters are compulsory when billing customers based on electricity consumption.
• EV charging may have tax and VAT implications, outlined in HMRC’s guidance.
• Ofgem’s licensing pages state the standard conditions of the electricity supply licence (which differ for domestic and non-domestic consumers).

An example process of hotels selling electricity:

• The electricity is supplied to the hotel by a licensed supplier.
• The power is transported at the hotel’s site to the CPO (charge point operator) across a private distribution network (a micro-grid).
• The CPO resells the power to the EV user.
• As the hotel resells electricity from another supplier to the charge point, it qualifies as an exempt supply (Class B).
• The CPO doesn’t supply power and resells it because charging of the EV occurs on the CPO’s premises. Hotels can also sell their excess solar power to a CPO. The solar output can also qualify as a Class C exempt supply. It’s a Class C instead of Class B because the hotel sells its generated power, rather than reselling another provider’s power (Class B).
• Hotels can use Class B and C supply exemptions in combination.
• The CPO isn’t required to supply a licence or to operate as an exempt supplier.

We work with businesses to create a simple installation and management process for EV chargers. Our team will arrange a site assessment and find the best future-proof solution for your hotel business.