Electric vehicle (EV) drivers in the UK are expected to pay significantly more to charge their cars at home following the upcoming increase in the energy price cap, according to calculations by fintech company Carmoola.
The price cap, set by Ofgem and reviewed every three months, will rise from 1 October until 31 December 2024, resulting in an estimated additional £2.78 million per month for EV drivers.
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In the UK, the energy price cap is a limit set by the regulator on the maximum amount energy suppliers can charge customers on standard variable tariffs for each unit of electricity and gas. It is designed to protect consumers from unfair pricing and excessive energy bills, particularly those who have not switched to a fixed-rate tariff.
Currently, the average cost to fully charge an EV with a 60kWh battery at home is £13.41. However, following the price cap increase, this cost is expected to rise to £14.70 per charge.
With around 1.2 million EVs on UK roads and each vehicle consuming approximately 108kWh per month, the total monthly cost for at-home EV charging is predicted to increase from £28.96 million to £31.75 million. Annually, this would mean a rise in total costs from £347 million to £381 million.
Hybrid vehicle owners will also face higher costs, with the average price per charge rising from £3.13 to £3.43.
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By GlobalDataThe energy price cap, which limits the amount energy companies can charge for standard variable rate tariffs, will increase by 10% to £1,717 per year for a typical household, up from £1,568 during the previous quarter. Despite the increase, it will remain cheaper for EV drivers to charge their vehicles at home compared to using public charging stations. Currently, public charging points cost an average of 56p per kWh, nearly double the home charging cost of 24.50p per kWh under the new price cap.
Aidan Rushby, founder and CEO of Carmoola, commented on the impact of the price cap rise: "Ofgem’s price cap has a very real effect on households, particularly with winter approaching. While household energy use is the main concern, the running costs of electric and hybrid vehicles will also affect energy bills. Although electricity is still cheaper than petrol, the £1.30 increase per charge will be felt by frequent drivers."
