Government launches long-awaited review into public EV charging costs

The Government has fired the starting gun on its long-promised review into the cost of public electric vehicle charging, tackling head-on what has become one of the biggest sticking points in Britain’s switch to electric.

For the millions of drivers without a driveway or home charger, the price of plugging in on the public network is increasingly cited as a 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 that have climbed by as much as 462 per cent at rapid and ultra-rapid sites, a squeeze that saw public charging costs jump 11 per cent in just 12 months.

Promised in the 2025 Budget statement, the review will examine how costs might rise in future without intervention across the full spectrum of the network, from low-speed on-street and destination charging through to high-powered en route rapids. It will also weigh up the cost of charging against fuelling a petrol or diesel car, and, crucially, assess how far any cost-cutting policies would actually be passed on to drivers rather than absorbed by operators already grappling with soaring overheads.

The recommendations, due to be published this autumn, will arrive in three parts: an analysis of why public charging costs what it does today, an assessment of how those costs might shift between now and 2030, and, the section drivers will care about most, what government and industry can do to bring prices down, covering both work already under way and recommendations for further action.

According to the Office for Zero Emission Vehicles, the options on the table could 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, with domestic home charging left out of the picture.

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VAT left off the table

That narrow scope has already drawn criticism. Campaign group EVA England has voiced frustration that VAT on public charging, levied at 20 per cent against just five per cent on home energy, and regularly cited as the quickest fix available to ministers, sits outside the review’s terms of reference, having recently been 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. “Our own driver research shows that 75 per cent of drivers now see public charging costs as the biggest hurdle to driving electric.

“It is 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.

“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 and that reflects a broader set of 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. The transition will only succeed if public charging is not just available, but fair, affordable and trusted.”