Charging an EV at home costs less than 5p per mile, says AA

Electric vehicle (EV) drivers on standard rate domestic tariffs are now driving for less than five pence a mile, according to the AA EV Recharge Report for July.

The rate, a result of the 2p reduction in the energy price cap which took effect from July 1, is the ‘worst case’ scenario as the price cap is the maximum a provider can charge to power up at home.

EV drivers can obtain even cheaper prices with special EV tariffs if they plug-in at off-peak times, typically overnight.

In December 2022, when the AA first launched the EV Recharge Report, the price cap for charging a car domestically was 7.99p a mile – 61% higher than now (4.97p).

Across the public charging network, meanwhile, all tariffs remained static.

Public charging costs had already fallen earlier in the summer. Slow and kerbside charging fell in June (as much as 8p per kWh for slow charging at peak times) and ultra-rapid public charging costs dropped in May (down 5p per kWh at both peak and off-peak times).

Jack Cousens, head of roads policy at the AA, said: “Driving an EV for less than five pence a mile is a landmark moment and shows just how cheap running an EV can be.

“As this is the cost based on the standard variable rates, savvy EV drivers will have scoped out the best deals across energy providers to bring their costs down further.”

He added: “The vast majority of EV drivers charge at home, with just 15% of their charges being carried out on the road.

“This helps keeps costs down further as drivers can plan their trips to coincide with the cheapest rates at their ideal location.”

The analysis of EV charging costs comes as HMRC announced it is cutting the Advisory Electricity Rate (AER), from 8-7ppm.

It is used by many electric company car drivers to claim back fuel costs from their employer. 

Last week, the Office of Gas and Electricity Markets (Ofgem) announced that the price of domestic electricity will rise.

The rise is scheduled to be similar to the April 2024 to June 2024 rates, meaning the per mile cost to charge from home will rise, but will still stay lower than previous winters.

Cousens said: “EV owners will hope that the increase in electricity prices is merely temporary, but will find solace in the fact that they are not as high as the peak costs experienced at the height of the Russian invasion of Ukraine.”

AA EV Recharge Report, July 2024 - flat rates

Source: The AA

AA EV Recharge Report, July 2024 - peak and off-Peak rates 

Source: The AA