Businesses that switch to electric or plug-in hybrid vehicles could reduce their fleet fuel costs by 75%, according to a new report.

And organisations whose vehicles travel less than 80 miles per day would find that a pure electric vehicle fleet would meet their needs on a single overnight charge.

These are the main findings of a report on The Plugged-in Fleets Initiative (PIFI), which is funded by Transport for London (TfL) and Department for Transport (DfT) and delivered by the Energy Saving Trust in partnership with EDF Energy and Route Monkey.

PIFI explored the potential savings organisations could make by introducing plug-in vehicles such as electric and plug-in hybrid cars and vans, into their company fleets.

Participants included Boots UK, London Fire Brigade, Network Rail, Surrey County Council, Southwark Council, Tristar, the University of Cumbria, Wm Morrisons, and York City Council.

At the launch of the report transport minister Norman Baker announced that the Coalition Government has agreed to provide £280,000 of additional funding to help a further 100 fleets understand where ultra-low emission vehicles could work for them.

He said: ”Today’s report from EST gives fleet managers valuable insight into how different vehicles can be used effectively and could lead to increased uptake of low emission vehicles across British fleets.”