Portsmouth International Port is urging the UK government to extend the proposed removal of VAT from household electricity bills to shore power supplied to ships.
Responding to the Prime Minister’s Labour Party Conference speech, port director Mike Sellers said high electricity costs were hampering maritime electrification. He called for shoreside electricity to be recognised as a marine fuel and exempted from VAT.
Despite Portsmouth’s investment in shore power, Sellers said operators were taking a financial hit to use it, with electricity costing millions of pounds more than their usual diesel-based fuel.
The council-owned port argues that reducing these costs would support maritime decarbonisation, improve air quality for nearby residents and strengthen its financial contribution to city services.