Fastest EV charging cheaper than petrol for first time, but only at off-peak – AA EV Recharge Report

• Off-peak ultra-rapid charging cheaper per mile than petrol car
• Budget could’ve done more to helping transition to EV’s
• “The Chancellor missed a golden opportunity to boost the EV revolution” says AA

The February 2023 AA EV Recharge Report shows an 8 p/kWh reduction in off-peak ultra-rapid charging makes electric cars cheaper to ‘fuel’ than a petrol car for the first time, but that depends on the time of day and the charging provider.

While some cheaper off-peak ultra-rapid charging drivers is available outside 6pm to 8pm, other chargers switch to off-peak only after 8pm. However, after EV charging away from homes took a battering for sometimes being more expensive per mile than driving with petrol, the latest EV Recharge Report shows that lower electricity costs are reversing that trend.

The average cost of off-peak charging has dropped from 60 p/kWh to 52 p/kWh, while peak charging for at these speeds is also cheaper having fallen from 74 p/kWh to 67 p/kWh. This is significant heading into the summer when more cars will be driving longer distances away from home. It also reduces the business cost travel by EV where ultra-rapid charging reduces travel times.

The downside is that the cost of slow charging has gone up with flat rate fixed prices, rising nearly 9%, from 34 p/kWh to 37 p/kWh.

The latest AA EV Recharge Report comes following the Budget which announced an extension to the domestic Energy Price Guarantee to 30 June 2023 but failed to significantly invest in boosting the public charging network.

With a target of 300,000 publicly available charging units to be installed by 2030, the AA is concerned that the UK will miss this ambition without more action to assist local councils, EV charging companies and energy providers in delivering this necessary infrastructure.

AA EV Recharge Report, February 2023. Flat rates;

AA EV Recharge Report, February 2023. Peak and Off-Peak rates;

‘Kerb Tax’ remains an issue

The AA believes that the Chancellor also missed the chance to push the transition to EVs forward in the Budget by failing to cut VAT on public charging and not promoting more spending on increasing the public charging network.

Public charging carries a VAT rate of 20%, but domestic energy use is just 5%. The AA has been calling on the government to slash the VAT on public charging to 5% to help the two fifths (40%) of households that do not have any form of dedicated off-street parking and are solely reliant on the public charging network. By failing to equalise the rates, the so-called ‘Kerb Tax’, a two-tier system is automatically created between those that have a driveway and those who don’t.

Jack Cousens, head of roads policy said: “EV owners are still reaping the benefits of cheaper per mile motoring, and this could improve further if energy costs are to fall later in the year. The recent shift in peak and off-peak charging prices for ultra-rapid devices provides brilliant value for money, especially with Easter just around the corner.

“The Chancellor missed a golden opportunity to boost the EV revolution. With new EV sales only increasing, the Budget was the moment to significantly invest in the public charging network while correcting the ‘Kerb Tax’ of mismatched VAT rates.

“Meanwhile, we were keen to see the government be more ambitious in expanding the EV charging network. With around 40,000 devices currently in the ground, we will need so see a monumental shift in installations over the coming years.”

ends

NOTES TO EDITORS

* Average prices are the PAYG options without connection fee as at 26 February 2023. Subscriptions are available for all charge point speeds which can unlock a cheaper p/kWh, however rates vary across provider.

Calculations based on adding 80% to a Vauxhall e-Corsa, 50kW, with a WLTP range of 222 miles. Adding 80% range equates to 178 miles of range. Vauxhall e-Corsa specifications here: Corsa_Spec_ePG_5_January_2023.pdf (vauxhall.co.uk)

Calculations based on Vauxhall Corsa 1.2L (75PS) Petrol with a 40 litre tank. 80% refuel = 32 litres.

Petrol: 32 litres @ 147.77 ppl = £47.29. Combined MPG of 47.9 = 335 miles at 14.12 p/mile.

Vauxhall Corsa specifications here: Corsa_Spec_ePG_5_January_2023.pdf (vauxhall.co.uk)