The price of charging an electric car using a rapid public charger has increased by over 42% in just four months due to the rising wholesale costs of gas and electricity. It now costs an average of £32.41 to charge a 64kWh family car to 80% from empty. The average cost to charge per kilowatt hour has also increased from 44.55p in May to 63.29p currently. Charging firms have expressed concerns over the rise, citing the 20% VAT imposed on public charging compared to 5% on home charging. The price hike could potentially deter potential buyers and impact the government’s plan to ban the sale of new petrol and diesel cars by 2030.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| Rising cost of charging electric cars | Increase in charging costs | Decreased affordability of electric cars | Rising wholesale costs of gas and electricity |
| Concerns over VAT rates on public charging | Disparity in VAT rates for public vs home charging | Possible reduction in public charging rates | Discrepancy in VAT rates |
| Potential impact on government’s plan to ban petrol and diesel cars | Hindering the transition to electric vehicles | Uncertainty surrounding the future of EV adoption | Potential decrease in EV adoption |
| Comparison of costs between EVs and petrol/diesel cars | Not all EVs are cheaper to run than traditional cars | Perceptions of EV affordability and cost-effectiveness | Varying cost efficiencies of EVs |
| Personal experiences with EV ownership | Positive experiences with EVs | Continued growth in EV adoption | First-hand experiences with EVs |
| Resistance to EV adoption | Skepticism towards EVs | Slow transition away from traditional cars | Resistance to change and lack of awareness |