EV STRATEGY
ENERGY CRISIS BECOMES AN EV ‘CHARGING CRISIS’ 42% rise in public EV charging cost in 4 months, and one operator hits £1 per kWh
PUBLIC EV CHARGING COSTS SOAR Many undecided people were starting to consider EVs as the way to go in June when the surge in pump prices pushed the cost of diesel to £2 per litre, creating a fuel crisis, with demands for the reduction of VAT on fuel to alleviate the cost burden.
Just a few weeks later, as Russia’s invasion of Ukraine continued, it was blamed for much of the recent rise in gas and electricity prices.
As a result, the cost of charging an electric car surged, prompting fears it will put off drivers from buying them.
Motoring Group the RAC reported EV owners who frequent “rapid” chargers were paying close to the same amount for electricity as they would for petrol.
One leading network, Osprey was the first to reach a new benchmark - an eye-watering £1 per kWH, though EV public charging costs have increased on average by 42% since May to 63.29p per kWh.
HOW DOES THIS COMPARE?
Drivers who only charge on rapid public networks will pay around 18p per mile on average, meaning EVs cost ~ 1p less per mile, than a petrol car doing an average of 40 mpg.
Many of those considering EVs as pump prices headed to £2 per litre, will now be wondering if electric will be viable, given the hikes in energy prices, and recent statistics from the Society of Motor Manufacturers and Traders (SMMT) also indicated the rampant growth of EV sales has slowed.
KEY CONSIDERATIONS
The average cost of 63.29p per kWH relates only to public, pay-as-you-go rapid charge point operators (CPOs).
The situation is not the same as for petrol or diesel cars, where fuel stations are the only place to refuel.
CPOs for most EV drivers are used for rapid top-ups, with the majority recharging at home, and mostly overnight on low peak, time-of-use (TOU) tariffs, ~ 33% cheaper than peak rates.
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This still means that virtually all EVs can be fully charged for less than a tenner overnight equating to 3-4p per mile in most cases.
VAT RATES DIFFER
Another key difference to consider is that domestic energy is taxed at 5% VAT, and public energy at 20%. As the costs have soared for public charging there is a more urgent need to level the VAT rates down to 5%.
It’s clearly unfair for those without private home parking to pay not only significantly higher energy costs but four times higher rate of VAT pro rata to the energy!
This was already a bone of contention before the energy price hikes, because if the Government is to reach emission targets, it needs road transport to reach zero emissions, and it needs to be fair and affordable.
SUMMARY POINTS; ARE EVs VIABLE?
As many commercial sector drivers don’t have home parking, the availability, reliability and cost of public charging all have to be viable to confidently switch to EVs.
Public chargers are increasing in numbers, but they still lag behind the demand of EV adoption, and many are poorly maintained.
For any charging inconvenience the economics have to add up for any business, but more so for those whose vehicles are their business. Public rapid charging as it is, does not provide these.
For those able to charge at home, and / or at work depots, EVs are still far cheaper to run and maintain - and kinder to our planet.
For independent advice and solutions on home and work charging, please get in touch.
Article supplied by Tim Scrafton The Connect Consultancy 0161 635 6553
hello@theconnectconsultancy.com
OCTOBER 2022 PHTM
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