Large fall in peak time charging offset by EVs paying VED – AA EV Recharge Report

April saw a 7p/kWh drop in peak time on-street slow charging with off-peak residential rates falling by a penny in a month, according to the latest AA EV Recharge Report. When compared to the maximum at-home charging cost (OFGEM cap), the difference with peak kerbside charging costs is around 2p-a-mile less than a month ago (6.10p v 13.11p a mile now as opposed to 5.65p v 14.69p in March).

Part of this is due to the cost of domestic charging on the OFGEM energy price cap – the worst possible rate an EV driver would pay – increasing by 2p/kWh. The cost of charging to 80% of battery capacity now comes in at just over a tenner. However, filling 80% of a tank of fuel would cost more than £40.

While making conversion to an EV even more attractive, the fear is that April's equalisation of the standard VED rate for electric cars with that of petrol and diesel cars may put off many potential buyers.

Most EV drivers with the ability to charge from home using a dedicated home charger will charge their vehicle at considerably lower rates, often as low as 5p/kWh if they charge overnight, meaning the impact on their pocket is considerably minimal.

While pump prices continued to slowly fall over the same period, EV charging offered competitive rates when charging away from home, with off-peak ultra-rapid charging being a penny a mile less than petrol (10.62 p/mile compared to 11.77 p/mile).

AA EV Recharge Report, April 2025. Flat rates;

AA EV Recharge Report, April 2025. Peak and Off-Peak rates;

EVs now paying VED

April also saw the introduction of electric cars paying vehicle excise duty (VED), even if they were previously registered and paying £0 a year**.

The move by the Treasury is seen as a necessary option to ensure that all car users make a contribution towards the upkeep of the road network. However, The AA is concerned that matching EV VED rates to petrol cars may hamper the adoption of used electric cars. The AA has called on a discounted car tax rate for EVs, to help bolster used electric car sales***.

Jack Cousens, head of roads policy for The AA, said; “For the second month running, on-street residential charging has fallen meaning drivers can recharge for less closer to their home. This is important for those without any dedicated off-street parking, as it allows everyone to join the move to electrification.

“Unfortunately for EV drivers, the introduction of VED means that the days of free car tax are over. Harsh still, was the decision to retrospectively charge all EV owners with the same rate as those driving combustion cars.

“The danger with this decision is that it removes a key incentive for people looking to buy a used car. An annual tax saving of around £200 was not to be sniffed at, yet the unique move to hit owners in this way means people may stick with what they've always chosen. The AA agrees that all drivers should pay something towards road maintenance, but a fairer solution would be to offer a discounted EV rate until EVs saturated more of the UK Car Parc.”

ends

NOTES TO EDITORS

* Average prices are the PAYG options without connection fee as at 24 April 2025. 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 221 miles. Adding 80% range equates to 178 miles of range. Vauxhall e-Corsa specifications here: Corsa_PSG_MY25_1_May_Library.pdf

Calculations based on Vauxhall Corsa 1.2L (100PS) Petrol with a 40 litre tank. 80% refuel = 32 litres.

Petrol: 32 litres @ 134.60 ppl = £43.07. Combined Low MPG of 52.3 = 366 miles at 11.77 p/mile.

Vauxhall Corsa specifications here: Corsa_PSG_MY25_1_May_Library.pdf

** Vehicle tax for electric, zero and low emission vehicles - GOV.UK

*** Taken from The AA's Motoring Manifesto: