Kerbside off-peak charging cheaper than Energy Price Guarantee – AA EV Recharge Report

The cost of off-peak slow charging, typically found at the kerbside in residential streets, has dropped more than 10% in the past month to 33p/kWh, according to the May 2023 AA EV Recharge Report*. Peak slow charging has dropped by more than a quarter, from 72p to 53p kWh. Off-peak charging at the slow rate outside a home is now on average below the Energy Price Guarantee of 34p kWh. 

With the Energy Price Guarantee extended until 30 June 2023, kerbside operators have changed tack to better reflect the offering available to EV owners with dedicated off-street parking using a specialist EV tariff provided by their energy supplier. 

This new drop in charging costs outside homes comes as the eight-month fall in average petrol pump prices ends. In the past fortnight, petrol has risen from a low of 143.04p a litre to 143.47p, having been in freefall from 166.54p a litre at the end of October. 

However, these big cuts in the cost of electric vehicle slow charging have happened against a backdrop of increased prices for recharging.at higher speeds. The end of government support for businesses providing charging, under the Energy Bill Relief Scheme (EBRS)**, has reversed reductions in off-peak and peak faster charging costs. While some providers have been unable to carry the increased energy costs for too long, it is hoped that this is a short-term blip and that faster charging costs can drop later in the year. 

For those EV owners using flat-rate tariffs, costs remain largely static.

Drivers support equalisation of VAT 

A policy which drivers are keen to see equalised is the rate of VAT when charging in the public realm. Domestic charging VAT is valued at 5% but increases to 20% away from home. A survey of more than 11,500 drivers carried out last week by the AA found that more than half of drivers (56%***) feel that VAT on public charging should be reduced to the 5% domestic energy VAT rate, with the AA calling for the Chancellor to act accordingly in his upcoming Budget this Autumn. 

Jack Cousens, head of roads policy for the AA, said: "Drivers without a driveway looking to switch to an EV will be happy to see off-peak kerbside charging now cheaper than the Energy Price Guarantee. This means they will feel some of the benefit EV owners with dedicated off-street parking have. 

"While the vast majority of EV charging is carried out at home, for those travelling further afield the rise in prices for faster charging has damped the good news. We hope this is a minor blip as electricity prices are predicted to fall later this year. Savvy EV drivers heading on a summer road trip should plan their charging stops at cheaper locations or time their journey so they can take advantage of off-peak rates. 

"This only highlights why reducing VAT on public charging from 20% to 5% is so crucial in helping more people switch to electric cars. The Chancellor can deliver some positive and popular news at the Budget and we urge him to do so."

*Article Source www.aa.co.uk