Increase to Energy Price Guarantee nudges up EV charging costs – AA EV Recharge Report

2p/kWh increase in Energy Price Guarantee matched on other flat rate chargers

UK began the year with 53,677 publicly available chargepoints

ZEV Mandate will play a role in drivers using network for the first time

AA reiterates calls to equalise VAT on out of home charging

The AA EV Recharge Report for January 2024 shows that the increase of 2p/kWh to the Energy Price Guarantee* has been reflected in the cost of flat rate chargers. Flat rate costs across fast, rapid and ultra-rapid charging matched the rise from the Energy Price Guarantee, meanwhile peak and off-peak rates in ultra-rapid charging, the fastest type of charging available, increased by 1p/kWh.

Despite this increase, off-peak rates for ultra-rapid chargers continues to remain cheaper per mile compared to petrol – even with pump prices falling for 15 weeks until the middle of January. All other rates remained static compared to the end of 2023.

As January saw the introduction of the Zero Emission Vehicle (ZEV) Mandate**, whereby manufacturers have a target of selling at least 22% of new car stock as wholly electric this year, The AA expects to see more drivers introduced to the public charging network for the first time this year.

To help encourage the transition to EVs and help consumers without dedicated off-street parking, 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.

Coupled with the ZEV Mandate, latest figures from the Department for Transport show that there were 53,677 publicly available chargepoints*** as at 1 January 2024, an increase of 45% compared to January 2023 (37,055). The AA is predicting a further boom in the public charging network throughout the year.

AA EV Recharge Report, January 2024. Flat rates;

AA EV Recharge Report, January 2024. Peak and Off-Peak rates;

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.

“However, the Government can do more to encourage drivers to make the switch to electric cars by cutting VAT to 5% on public charging. That would help all drivers, especially those without a driveway or a dedicated parking space.”

ends

NOTES TO EDITORS

* New energy price cap level for January to March 2024 starts today | Ofgem

** A zero emission vehicle (ZEV) mandate and CO2 emissions regulation for new cars and vans in the UK - GOV.UK (www.gov.uk)

*** Electric vehicle public charging infrastructure statistics: January 2024 - GOV.UK (www.gov.uk)

**** Average prices are the PAYG options without connection fee as at 22 January 2024. Subscriptions are available for all charge point speeds which can unlock a cheaper p/kWh, however rates vary across provider.

Calculations based on adding 80% to a Vauxhall e-Corsa, 50kW, with a WLTP range of 222 miles. Adding 80% range equates to 178 miles of range. Vauxhall e-Corsa specifications here: Corsa_Spec_ePG_5_January_2023.pdf (vauxhall.co.uk)

Calculations based on Vauxhall Corsa 1.2L (75PS) Petrol with a 40 litre tank. 80% refuel = 32 litres.

Petrol: 32 litres @ 139.80 ppl = £44.74. Combined MPG of 47.9 = 335 miles at 13.35 p/mile.

Vauxhall Corsa specifications here: Corsa_Spec_ePG_5_January_2023.pdf (vauxhall.co.uk)