The director of Portsmouth International Port, Mike Sellers, warned about the "neutralization" of shore power usage in UK ports due to high electricity costs. He emphasized that high electricity costs could lead to insufficient use of newly constructed infrastructure.
Tax Changes and Their Impact on Shore Power
The UK government has temporarily removed the 5% value-added tax that was previously applied to household electricity bills in England, Scotland, and Wales from October 1, 2026, to March 31, 2027. This tax is added to the cost of goods and services, including electricity. Sellers believes that shore power supplied from UK ports should benefit from such discounts.
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Problems Caused by High Electricity Prices
Electricity supplied for commercial use is usually subject to a standard 20% value-added tax in the UK. However, Sellers argues that high electricity costs significantly increase the cost of connecting ships to the power grid when docked in ports. He stated, "We have a high-capacity, industry-leading shore power system, but it is costly."
According to Sellers, electricity costs account for about 80 to 85 percent of the total cost a ship pays to connect to the grid in Portsmouth, while only 15 to 20 percent of this cost is related to port fees.
Christophe Mathieu, CEO of Brittany Ferries, also stated that the high costs of electricity for grid connection remain "very high" and warned that shore power facilities may become non-functional assets.
Reports indicate that the average electricity price for medium non-household consumers in the UK in the second half of 2025 was around 25.1 pence per kilowatt-hour, which is significantly higher than 16.8 pence in Germany and 10.6 pence in France.
A report published by the Portsmouth Port Authority points to the lack of competitiveness of non-household electricity prices internationally as one of the main barriers to the use of shore power in UK ports. The report also calls for government intervention to help reduce the cost gap.
BPA's senior sustainability advisor, Rona McDonald, has suggested that the tax burden on electricity supplied in ports be reduced and that a review of network costs, which can significantly impact shore power infrastructure, be conducted. Additionally, targeted support to reduce electricity prices for operators has been proposed.
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