Electric Vehicle (EV) charging costs expected to FALL as electricity prices lower, says RAC
The rising cost of using rapid and ultra-rapid public electric vehicle (EV) chargers has finally halted, with prices anticipated to decrease in the upcoming weeks. This news comes from the latest data released by RAC Charge Watch.
According to the report, the average cost for a pay-as-you-go "rapid" EV charge is currently 71.41p per kilowatt hour (kWh), showing no change from the previous month. Although this is a 13% increase from last year's figure of 63.29p, it presents a welcome relief for drivers who often rely on these chargers for longer journeys. Charging a family-sized electric car from 0% to 80% at a rapid charger costs drivers £36.56, providing a range of approximately 188 miles.
Furthermore, the study reveals that the cost of utilising "ultra-rapid" chargers, capable of delivering hundreds of miles of range to EVs in a matter of minutes, is only slightly higher than that of rapid chargers. Currently priced at 74.81p per kWh, it represents a 17% increase from the previous year. Charging to 80% at an ultra-rapid charger would amount to £38.30, almost double the cost of charging at home.
However, with the recently decreasing electricity prices, the RAC predicts that chargepoint operators (CPOs) will begin reducing their prices in the coming weeks, ultimately making the cost of charging at both rapid and ultra-rapid chargers more affordable.
Importantly, the RAC emphasises that charging an EV at home still remains highly cost-effective, with drivers on a standard variable domestic electricity tariff paying only £15.36 for an 80% charge and £19.20 for a full charge. The implementation of a new energy price cap next week will further reduce the cost for charging an EV at home, with an 80% charge dropping to £13.82 and a 100% charge costing just £17.28. Drivers on dedicated EV tariffs can already enjoy even lower rates, with some paying as little as £5-£6.
The RAC's analysis also includes a comparison of charging costs with the price of filling petrol and diesel vehicles on a per-mile basis. Currently, drivers using rapid chargers or ultra-rapid chargers pay approximately 20p and 21p per mile for electricity, respectively. Meanwhile, those driving petrol or diesel cars of similar size pay around 18p per mile.
With the prospect of falling charging costs and the ongoing rise in fuel prices, the analysis underscores the increasing viability and affordability of EVs as a greener alternative for motorists.
RAC spokesman Rod Dennis said: “The fact charging prices – whether at home or at a public rapid or ultra-rapid charger – appear to have finally peaked can only be good news for drivers, whether they’re already lucky enough to drive an electric vehicle or are considering one as their next vehicle. It’s imperative now that charge point operators (CPOs) reduce their rapid and ultra-rapid charging prices as soon as they can to show they’re on the side of drivers.
“But there’s a clear role for the Government here too in keeping charging affordable, especially for drivers who don’t have the luxury of cheap charging at home. For this reason, we’re disappointed the Government has so far rejected calls from ourselves, the FairCharge campaign, the motor manufacturers’ trade body SMMT and from many others in the industry for the VAT rate charged on electricity bought from public EV chargers to be reduced to match the 5% charged to domestic households. Doing so would cost the Treasury relatively little but would see charging costs fall by around 9p per kWh, saving drivers around £6 for every 80% charge.
“Charging aside, there’s no getting away from the fact that the relatively high upfront cost of electric cars compared to their petrol and diesel counterparts remains a major reason why many more drivers won’t yet be considering the switch – something that the current cost-of-living crisis is compounding.
“With the Government pushing back the ban on the sale of new petrol and diesel cars from 2030 to 2035 it appears to be pinning its hopes entirely on manufacturers reducing vehicle prices in order to meet their EV sales’ obligations as part of the zero-emission vehicle mandate that comes in next year. But we continue to believe there is a very good case for a new plug-in car grant aimed at the more affordable end of the car market to be introduced to ensure as many drivers as possible benefit from the electric car revolution, as quickly as possible.”
Dr Euan McTurk, consultant battery electrochemist from Plug Life Consulting Ltd, said: "We should see charge point operators (CPOs) starting to reduce charging tariffs soon. With commercial energy tariffs already starting to fall after last year's unprecedented spikes, it won't be long until CPOs will be paying less for electricity.
“It makes sense for CPOs to pass on those savings to drivers. If they lower their tariffs, not only will more drivers choose to use them, but even more drivers will be encouraged to switch to electric vehicles due to increased savings in running costs, thus increasing their customer numbers. So, passing on those savings makes as much sense to CPOs as it does to drivers, and it will happen as soon as possible."
Founder of the FairCharge campaign, Quentin Willson, said: “It’s a matter of credibility and trust that charge point operators pass on the price falls in wholesale electricity quickly to create consumer confidence and don’t behave like the road fuel industry with their now infamous ‘rock and feather’ pricing. Now would also be a good time to heed FairCharge’s multiple requests to both The Treasury and Chancellor to cut the 20% VAT on public charging in line with the domestic rate of 5%. FairCharge and the RAC have campaigned for this for the last two years and the Treasury knows that the cost would be relatively little. If the PM really is on the side of all motorists he could help lower EV charging costs immediately.”
