Why public EV charging remains expensive despite falling energy prices
Public electric vehicle (EV) charging costs have remained notably high, even as wholesale energy prices have fallen. This is according to the latest figures from RAC Charge Watch, which reveal a stark disparity between the cost of home charging and the price of using public rapid and ultra-rapid chargers.
While home charging remains the most economical option, costing as little as 7p per kilowatt hour (kWh) during off-peak hours, public charging costs have barely budged in 2024. Drivers using rapid chargers—offering power outputs between 50 and 149 kilowatts—pay an average of 79.19p per kWh. Ultra-rapid chargers, which provide over 150 kilowatts and can charge most EVs in minutes, cost a comparable 77.67p per kWh. For a family-sized EV, this equates to over £40 for a 10% to 80% charge, delivering around 170 miles of range.
In comparison, charging the same EV at home costs just £15.88 for a full charge on a standard electricity tariff. This price disparity leaves drivers reliant on public charging facilities paying a significant premium, with costs up to 10 times higher than off-peak home charging rates.
The reasons for these stubbornly high public charging costs are rooted in operational and structural challenges. Charging networks face steep expenses, particularly in grid capacity charges, which reflect future electricity needs as EV adoption grows. Additionally, these networks shoulder the bulk of the responsibility for expanding the UK’s charging infrastructure. This investment in future capacity requires higher current prices to remain financially viable, as less than 4% of UK cars are currently electric.
Unlike domestic energy supplies, commercial electricity—such as that used by charging networks—does not benefit from a price cap. The domestic cap, implemented by Ofgem, was critical in shielding households from the volatility of wholesale prices in recent years, but no similar mechanism exists for businesses.
For now, the cost divide between home and public charging remains a significant challenge for the UK’s EV transition, highlighting the importance of continued investment in infrastructure and policy measures to ensure fair pricing for all drivers.
RAC spokesperson Rod Dennis said: “Drivers of electric vehicles might be frustrated that the cost to use rapid or ultra-rapid chargers remains stubbornly high, despite wholesale energy prices dropping. But they might also be surprised to learn that the actual cost of electricity they are using when they charge up makes up a relatively small part of the total price they have to pay due to the high charges levied on the networks for grid upgrades and connections.
“Charging networks are spending enormous sums of money now to install the charging infrastructure that an increasing number of drivers will be using in the years to come, as more of us switch to EVs. Figures show that almost twice as many of the fastest chargers have so far been installed this year compared to last, and nearly four times as many compared to 2022.
“Of course, not all drivers depend on these fastest, high-powered chargers, but they are a crucial element of the charging mix. They are especially important for drivers who don’t have their own off-street parking space and so can’t benefit from the cheap rates to charge an EV at home.
“Our figures highlight the huge gulf in prices between those paid by EV drivers to use public chargers, and those that homeowners with EVs pay at home. On the one hand, anyone who has an off-street parking space and a home charger installed can charge up for just a seventh of the price of using a lamppost or bollard charger off peak where these exist, and less than a tenth of the price of using a high-powered public charger.
“For these reasons, it’s vital that public charging costs for drivers come down. Reducing the rate of VAT charged on electricity sold at EV chargers from the present 20% to match the 5% charged to domestic customers would be a huge help, but this wasn’t included in last month’s Budget. The best prospect of lower prices may come from Ofgem reviewing and, in turn, reducing the additional charges the charging networks have to pay. If these costs come down, drivers could at last expect cheaper public charging costs in the future.”
ChargeUK Chief Executive Officer, Vicky Read, said: “We believe reforms are needed to help charge point operators offer public charging that is as affordable as possible.
“The sector has committed to spend £6 billion ahead of demand and profitability to deliver the charging infrastructure that the UK needs. With a public charger being installed every 25 minutes and the network expanding by 42% a year, we are on track to do this. Our members are also committed to making charging affordable as possible, because we know this is a key consideration in the decision to switch to EVs.
“But operators are faced with significant costs outside their control. VAT charged at 20% for public charging (versus just 5% at home), standing charges for rapid charging that have risen more than 10-fold in the past 18 months, wholesale electricity prices that remain among the highest in the EU28, and the fact that operators in the UK do not benefit from carbon credit schemes, unlike many of our European counterparts.
“We call on the Government and Ofgem to act now to ensure that affordability is not a hurdle in the transition to EVs.”
