Energy price cap cuts electric vehicle home charging cost by 4p/kWh

The new energy price cap has reduced home charging costs for electric vehicle (EV) drivers by 11.8%, new analysis suggests.

Electric car drivers have seen prices of public flat rate charging rise while costs for charging an EV at home have fallen by 4p per kWh, according to the July 2023 AA EV Recharge Report.

The new energy price cap fell from an average of 34p/kWh to 30p/kWh from July 1. However, all flat-rate public charging costs rose by at least 1p/kWh compared to June, with slow rate on average rising by 4p to 48p/kWh due to a big rise in one city.

While slow charging in residential areas through lampposts remained largely static, the council-announced increase in Brighton and Hove from 39p/kWh to 61p/kWh, a 56% increase, drove the average kerbside cost across the country up 4p/kWh.

Meanwhile, all peak and off-peak rates of charging in the public realm remained static offering some comfort to EV owners.

“The majority of EV owners have their own dedicated charging source and would’ve reaped the benefits of the drop in the energy price cap when charging at home,” said Jack Cousens, head of roads policy for the AA.

“However, that benefit may have been missed completely for those who are solely reliant on the public network. While wholesale electricity costs have dropped considerably from last summer, some networks increased their prices.”

Source:AA EV Recharge Report, July 2023 

Flat rate slow charging at highest point this year

Unfortunately, the hike in slow charging costs means July was the most expensive month to use that speed of charge in 2023.

With domestic energy prices falling and OFGEM reporting that wholesale electricity prices are down considerably from the same time last year, EV drivers may feel disappointed that public realm charging has not fallen, said the AA.

Cousens said: “With the Competition and Markets Authority and Government keen to keep an eye on pump prices, there is a strong argument to consider mirroring their activities for EV charging costs in the public realm.”

AA EV Recharge Report, July 2023 - Flat rates

AA EV Recharge Report, July 2023 - Peak and off-peak rates