The Government has launched its review into public electric vehicle charging costs, targeting what’s become a major roadblock in Britain’s shift to electric cars.
For millions of drivers without driveways or home chargers, public charging prices have become a key reason to stick with petrol or diesel. Industry body ChargeUK reports that public charging prices have risen by 38 per cent since 2021 – driven largely by soaring energy bills and standing charges.
Standing charges have climbed by as much as 462 per cent at rapid and ultra-rapid sites. This squeeze saw public charging costs jump 11 per cent in just 12 months.
The review, promised in the 2025 Budget statement, will examine how costs might rise without intervention. It’ll cover the full spectrum – from low-speed on-street and destination charging through to high-powered en route rapids.
The study will also weigh up charging costs against fuelling a petrol or diesel car. Crucially, it’ll assess how far any cost-cutting policies would actually reach drivers rather than being absorbed by operators already dealing with soaring overheads.
The recommendations are due this autumn in three parts. First, an analysis of why public charging costs what it does today. Second, an assessment of how those costs might shift between now and 2030. Third – the section drivers will care about most – what government and industry can do to bring prices down.
Options Under Review
According to the Office for Zero Emission Vehicles, options on the table include regulation, government funding, wider policy levers, action by regulators, market-based trading schemes and dynamic pricing.
The scope is strictly limited to public charging. Domestic home charging sits outside the picture.
That narrow scope has already drawn criticism from campaign groups. EVA England has voiced frustration that VAT on public charging – levied at 20 per cent against just five per cent on home energy – sits outside the review’s terms of reference.
The VAT disparity is regularly cited as the quickest fix available to ministers but was recently downplayed by the Government as a potential solution.
“EVA England has welcomed the Government’s cost of charging review and its focus on cutting costs for drivers – a major barrier to the transition to electric,” said the group’s chief executive, Vicky Edmonds.
“It’s disappointing that VAT has been left outside the terms of reference, given the clear unfairness between drivers who can charge at home and those who rely on the public network,” Edmonds added.
She noted that VAT alone wouldn’t solve the problem. “However, VAT is only one part of a huge challenge. On its own, it wouldn’t be enough, and we need to see real structural reform that brings down chargepoint operating costs.”
The reform needs to reflect broader issues around pricing transparency, reliability and access to chargers – especially for renters, lower and middle-income households and people without driveways.
“This review must look seriously at every practical measure that can bring down costs and improve the charging experience for drivers,” Edmonds said. “The transition will only succeed if public charging isn’t just available, but fair, affordable and trusted.”
