Electric Vehicle Charging Costs Surge 5%, Straining Drivers Amid Sales Slowdown and High Running Expenses

The expenses connected with operating electric vehicles (EVs) are becoming a topic of concern as recent data reveals that the costs of using rapid roadside charging points have surged by 5%, leading to a significant financial burden on EV owners. This increase in charging costs adds to the already higher running expenses of electric cars, which can be up to twice as costly as their petrol or diesel counterparts.

Cost Disparity Between Electric and Diesel Vehicles

According to the latest figures, running an electric vehicle can cost over 24p per mile, while operating a diesel vehicle amounts to only 12.5p per mile. This substantial difference in costs is primarily attributed to the steep prices associated with charging electric vehicles using rapid or ultra-rapid devices, which can reach as high as 80p per kilowatt hour, as indicated by data from the ZapMap app. Furthermore, a typical electric car is estimated to cover a distance of 3.3 miles for every kWh of electricity used, resulting in charging at rapid and ultra-rapid points costing the equivalent of 24.1p per mile, as determined by calculations from The Times. Slower chargers, while comparatively cheaper, still amount to 16.4p per mile, making them around double the cost of average diesel vehicles. In comparison, a typical petrol car incurs a cost of 14.5p per mile, as per the analysis.

Journey Costs Comparison

To put this into perspective, a return journey from London to Penzance in an electric car utilizing rapid chargers would incur a cost of £148, as reported by The Times. In contrast, the same trip in a diesel car would cost £77, while a petrol vehicle would amount to £89. It is noteworthy that charging at home is significantly more economical, costing less than a third of what averages rapid chargers charge.

Industry Perspectives and Challenges

The price hike at rapid chargers, despite a 30% decrease in the wholesale cost of electricity, is perplexing. This coincides with a decline in oil prices, raising questions about the factors driving up charging costs. Additionally, the increase in the number of rapid or ultra-rapid charging stations across Britain, which now totals over 12,500, has not resulted in a proportionate rise in electric vehicle sales. Electric cars currently account for 17.2% of all new registrations since the beginning of 2024, down from the 18.7% peak in the latter half of 2022. Mike Hawes, the chief executive of the Society of Motor Manufacturers, emphasized the prevailing challenges, stating, “It’s tough out there. Levels of demand are much, much softer.” Furthermore, the sales outlook for electric cars in Europe is even more dire, with a 44% drop in registrations in August.

While at-home charging is typically more cost-effective, it poses a significant challenge for a considerable portion of the UK population. Nearly half of the households in the UK reside in terraced properties or flats, which precludes the possibility of using a driveway or garage for home charging. This limitation further compounds the financial burden on electric vehicle owners.

Government and Industry Responses

In response to the escalating charging costs, the AA has urged the Government to align the VAT on chargers, currently set at 20%, with the 5% rate levied on at-home electricity. Additionally, there are calls for the Government to consider reducing VAT on electric car sales or exempting electric cars from a new "luxury car supplement," which imposes a higher rate of road tax on vehicles costing over £40,000, affecting about two-thirds of electric cars.