Electric vehicle owners who don’t have access to a home charger are facing exorbitant fees of up to 1,500% when charging their vehicles on the streets. Homeowners with dedicated chargers, smart meters, and electric car tariffs from their energy suppliers can charge their vehicles overnight for as little as 5p per kWh. In contrast, neighbors relying on council-backed on-street chargers can be charged rates of 65p per kWh, resulting in a significant price disparity. Additionally, these individuals may face idle fees of up to 6p per minute if they remain connected to the charger after their vehicle is fully charged. Not only do public chargers cost more, but they also have a higher VAT rate of 20%, compared to the 5% rate for home charging. This difference in rates has become a lucrative revenue stream for the government.
Some electric vehicle owners, such as actor Rowan Atkinson, have expressed their frustration with the challenges of finding places to charge their cars. Residents have also complained about the inconvenience caused by electric car owners without driveways leaving cables on the pavement while charging. This practice is not only disruptive but also poses a safety hazard according to the National Federation for the Blind.
RAC Charge Watch has been monitoring the cost of charging electric vehicles compared to the cost of fueling traditional petrol or diesel cars. Due to the significant increase in charging costs in public, it now costs less to run a petrol or diesel car. The government plans to ban the sale of new petrol and diesel cars by 2030 and aims to improve the availability of public electric charging stations. However, motorists have criticized the current system for being confusing, with different providers requiring drivers to download specific apps to access their services. The government also plans to ban the sale of new hybrid cars in the next five years.
The RAC has been tracking the cost of charging electric vehicles since October 2021, comparing them with petrol and diesel cars. Drivers who rely on street charging instead of home charging have to pay much more for the service. The RAC is urging the government to reduce VAT on public charging to ease the financial burden on motorists. Charities have criticized the practice of leaving electric car charging cables draped over pavements or hanging out of windows, deeming it unsafe and ludicrous.
At the beginning of the survey, electric vehicle owners were paying an average of 10p per mile for public charging, while petrol and diesel users paid between 15-16p per mile. From October 2021 to April 2023, the cost of public charging for electric vehicles more than doubled to 20p per mile, while diesel prices dropped to 17p per mile and petrol remained at 16p per mile. Those who can charge their electric cars at home pay 10p per mile, which can be reduced to 5p per kWh with a special tariff. On average, it costs around £2.56 to charge an electric car enough to cover 180 miles. Electric cars have a range of approximately 3.5 miles per kWh, while petrol and diesel cars have an average fuel efficiency of 40 miles per gallon.
In London, 24 boroughs have partnered with Source London to provide on-street charging facilities. Users can sign up for a monthly subscription, which offers discounted power, particularly to residents of the respective borough. Without a subscription, motorists are charged 65p per kWh and face a 6p per minute idle fee after their vehicle is fully charged. The RAC is concerned about the costs of public charging and is calling on the government to reduce VAT on the service. Electricity providers have stated that they will pass on the savings to motorists, resulting in lower costs. VAT on domestic electricity is currently at 5%, while VAT on electricity supplied through a public charger is subject to a 20% tax.
SNP MP for Glasgow North West, Carol Monaghan, recently raised the issue of discriminatory access to charging points in Parliament. She highlighted that 38% of households do not have private parking, putting them at a disadvantage when it comes to charging electric vehicles. Minister of State at the Department of Transport, Jesse Norman, responded that he couldn’t commit to implementing changes to VAT policy, citing limitations as a government official.
The global head of Volkswagen and Porsche emphasized that governments need to invest more in charging infrastructure to support the wider adoption of electric cars. He stressed the importance of collaboration between car companies, energy providers, and the government in deploying more charging stations. In 2021, the UK saw 2.2 million vehicle registrations, with 395,000 being plug-in hybrids and 267,000 electric cars.
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