More operators introduce peak and off-peak rates for EV chargers

Peak and off-peak tariffs for the fastest electric vehicle (EV) chargers are being introduced by more charge point operators, says the AA.

A few companies announced changes to their business model in September to provide EV charging flexible rates, rather than a fee applied 24/7.

The decision, according to the AA’s EV Recharge Report for September, resulted in some drastic movements in the price of charging with ultra-rapid peak rate costs increasing by 8p/kWh, while off-peak rapid charging fell by 10p/kWh.

Meanwhile, most flat rate charging fell by up to 2p/kWh, although flat rate fast charging rose by 3p/kWh.

AA EV Recharge Report, September 2024, flat rates

AA EV Recharge Report, September 2024, peak and off-peak rates 

The AA is reaffirming its calls to reduce VAT on public charging to match VAT applied on domestic electricity prices at 5%.

Four-in-10 homes do not have any form of dedicated off-street parking, and the so-called ‘pavement tax’ means those drivers wanting to join the electric revolution suffer from higher charging costs.

At the same time, the AA is calling for a boost to EV charging infrastructure to help kill the perception that public chargers can be hard to find.

As well as cutting red tape to accelerate installations, the AA wants to see the right speed of charge in the right place.

While there is considerable focus on delivering rapid and ultra-rapid chargers, the AA would like to see more neighbourhood charging schemes such as streetlamp upgrades, community charging hubs and investment in rural areas.

Jack Cousens, head of roads policy for the AA, said: “In an interesting move, more operators at the fastest speeds are moving away from flat rates and switching to variable tariffs.

“While each company differs when off-peak rates come into play, it seems fairly uniform that unsocial hours trigger the best value for charging at high speeds.

“If drivers are willing to watch the 10 o’clock news in their car, then rapid charging can be as cheap as chips.

“With the Budget tomorrow (Wednesday, October 30), the Chancellor has the opportunity to make EV’s more appealing by reducing the rate of VAT on public charging.

Reducing VAT from 20% to 5% would level the playing field for the 40% of households without dedicated off-street parking, and help drivers make further savings.

“One of the main reasons drivers remain hesitant to making the switch to EVs is their perception that there are not enough public chargers.

“Both the Prime Minister and Chancellor have called on investment to help boost the economy. A sure-fire way to help the economy, provide jobs and futureproof personal transport is to invest in the EV sector.”