UK. Energy prices increase EV charging costs, says AA EV Recharge report

AA EV Recharge report showed that the increase in Energy Price Guarantee influenced EV charging costs. Image: RAW Charging

Automotive service provider, the AA has released the latest EV Recharge report for January 2024, revealing that the Energy Price Guarantee surge increased electric vehicle (EV) charging costs.

The report showed that the increase of 2p/kWh to the Energy Price Guarantee has been reflected in the cost of flat rate chargers.

The change is shown in the price of peak and off-peak rates in ultra-rapid charging, the fastest way to charge an EV, which rose by 1p/kW.

Even with pump prices falling for 15 weeks until the middle of January, off-peak rates for ultra-rapid chargers continue to remain cheaper per mile compared to petrol, as was initially indicated in the AA’s December 2023 report.

According to the report, it cost 12.81 pence per mile to use an ultra-rapid charger during off-peak hours in December, compared to 13.54 pence per mile for an equivalent petrol car.

January also saw the zero-emission vehicle (ZEV) mandate get passed into law, meaning manufacturers have a target of selling at least 22% of new car stock as wholly electric in 2024, which AA suggested will lead to a surge in first-time UK EV drivers.

Coupled with the ZEV Mandate, the latest figures from the Department for Transport show that there were 53,677 publicly available chargepoints as of 1 January 2024, which reflected a 45% increase from the 37,055 recorded in January 2023.

In solidarity with the growth in the number of public EV chargers, the AA is reiterating its call for VAT on public chargers to be set at 5% to match the rate set on domestic energy costs.

Jack Cousens, head of roads policy for the AA, said, “While the Energy Price Guarantee nudged up charging prices, charging from home remains the cheapest way to power an electric car, even if drivers don’t have a special EV tariff.

“Off-peak ultra-rapid charging continues to be cheaper per mile than petrol, and that gap will begin to widen following the recent upturn in pump prices.”

Supporting statistics

Moreover, new figures published by Zapmap have revealed that the overall cost of high-powered charging on the public network increased by 11% in 2023.

The Zapmap Price Index reported that the average price of charging an electric vehicle (EV) in Britain using a rapid or ultra-rapid increased from 73p/kWh in December 2022 to 81p/kWh. Slow charging prices also rose, increasing by 13% from 49p/kWh in December 2022 to 55p/kWh in December 2023.

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