Electric cars: Cut cost of charging EVs, campaigners urge

EV campaign group FairCharge and the RAC are calling for electricity wholesale price to be decoupled from gas which would reduce the cost of charging electrical vehicles (EVs).

Currently, energy bills are being pushed to record highs not by the cost of electricity itself but because the price is coupled with the global wholesale cost of gas, which has soared.

Surging energy bills have dented enthusiasm for switching to electric cars due to much higher charging costs.

However, FairCharge and the RAC said that if gas and electricity prices were to be decoupled the growing share of electricity generated from cheaper renewable sources would over time determine the price more often, bringing down energy costs for businesses, consumers and EV drivers as well as encouraging more people to switch to EVs.

Read more: Electric and hybrid cars account for a third of cars made in the UK

RAC EV spokesperson Simon Williams said: “It’s very important that enthusiasm for electric vehicles isn’t dampened in the run-up to 2030 when the sale of new petrol and diesel cars comes to an end.

“The fact electricity has gone up in price quite dramatically due in the most part to the wholesale price of gas shooting up as a result of the war in Ukraine is a sign that action needs to be taken to change this for the benefit of households and businesses, and to guarantee the electric car revolution stays on track.

Both organisations want the government to publish the results of its review of electricity market arrangements – which closed for consultation last October – so the decoupling process can begin.

The review states that under the current system, gas prices often end up setting the wholesale electricity price because gas-fired power stations are the last source of supply used to meet demand.

FairCharge founder Quentin Willson said: “EVs charged at home are still considerably cheaper to run than combustion cars, but prices at many public charge points have increased significantly.

Read more: Electric car demand rises but cost of living delays many from making switch

“Anyone using the public network will now have to pay more, but critically, the rise in costs will reduce EV take-up at a crucial time. Decoupling the wholesale price of gas from electricity from cheaper renewable sources would help everyone by lowering electricity prices. Those lower energy costs will also impact inflation and interest rates. Decoupling should become an essential and urgent part of the UK’s future energy strategy.”

RAC Charge Watch data shows the average cost of using the very fastest chargers increased by 50% between May 2022 and last month, to 70p (per kilowatt hour) for rapid and 75p for ultra-rapid.

FairCharge is also campaigning to get the 20% VAT charged at public charge points reduced to match the 5% levied on domestic electricity.

Watch: EV adoption is like 'the chicken and the egg'

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