Mike Sellers, director of Portsmouth International Port, has expressed concerns that the high cost of electricity in the UK is significantly impeding the adoption of shore power solutions at the nation's ports. This situation risks rendering newly constructed shore power infrastructure largely unused.
While the UK government has implemented a temporary removal of the 5% Value Added Tax (VAT) on qualifying domestic electricity bills, effective from October 1, 2026, this measure primarily benefits residential consumers and does not adequately address the commercial electricity costs faced by ports. The underlying high energy prices make it challenging for ports to provide shore power at a rate that is economically attractive for shipping companies.
For freight forwarders and vessel operators, this means that the anticipated environmental and operational benefits of shore power, such as reduced emissions and noise at berth, may not be fully realized in the UK. If ports cannot offer shore power at a competitive price, vessels will continue to rely on auxiliary engines while docked, negating the investment in green infrastructure and potentially impacting port selection for environmentally conscious carriers. This could also affect compliance with future emissions regulations if shore power is mandated or incentivized more strongly.
