The UK’s charging industry is demanding government action to tackle soaring energy costs that threaten to derail the country’s electric vehicle transition.
ChargeUK, representing most chargepoint operators, has released new research showing energy costs for public charging networks have quadrupled in recent years. The organization’s CEO Vicky Read warned these costs will inevitably hit drivers’ wallets.
“If the Government wishes to ensure that the cost of charging doesn’t become a barrier to millions more drivers switching to EVs, it needs to take action,” Read said.
Standing Charges Surge 462%
According to ChargeUK’s report “Delivering Affordable Charging for All”, standing charges for public network operators have jumped by up to 462% over the past four years.
These fixed costs now account for 70% of operators’ total energy expenses. During the same period, public charging costs for drivers rose an average of 38%.
The report blames the sharp increase in fixed charges and rising wholesale energy prices for higher costs at charging stations. ChargeUK wants the government to slash standing charges, reduce green levies, and align tax on public energy costs with domestic rates.
The Price Gap Problem
The cost difference between home and public charging has created a significant barrier for many drivers.
Home charging on an EV tariff costs as little as 7p per kWh. Rapid or ultra-rapid public chargers average 76p per kWh – more than ten times higher. Even slow chargers like kerbside or destination units cost an average of 51p per kWh.
This pricing gap threatens to make EV ownership unaffordable for the estimated 40% of households without off-street parking.
“The public charging sector has been hit by a series of policy and regulatory decisions that have caused our own costs to soar, with an unavoidable impact on some driver prices,” Read explained.
Three-Point Action Plan
ChargeUK has outlined specific government actions to address the crisis:
- Cut VAT on public energy from 20% to 5% – potentially saving drivers up to £145 annually
- Accelerate regulatory changes to reduce standing charges and extend policy levy exemptions
- Add EV charging to the Renewable Transport Fuel Obligation, allowing operators to trade compliance certificates with fuel companies
The industry body argues these measures would quickly reduce costs without requiring major new government spending.
Read emphasized that charging operators remain committed to affordability. “Our members are committed to ensuring that all drivers can charge affordably across the mix of charging options available to them.”
The EV transition continues gaining momentum – electric vehicles accounted for a quarter of all new car registrations recently, and the public charging network reached 85,000 charge points this month.
“Most drivers can already charge affordably, and the charging sector is innovating to offer additional ways to access cost-effective options,” Read noted.
The government has already recognized affordability concerns by launching the Electric Car Grant. ChargeUK now wants ministers to focus on the business costs affecting charging affordability to create better conditions for drivers making the switch.
