From July 1, two million electric car owners in the UK could face an additional £20 to £50 per year in home charging costs due to a change in Ofgem’s energy price cap. The cap on standard variable tariffs will rise from 24.67p/kWh to 26.11p/kWh, increasing the cost of electricity used for charging electric vehicles (EVs).
Impact of the Price Cap Rise
The price cap increase, announced by energy regulator Ofgem, will take effect at the start of next month. According to research from WhatCar?, EV owners charging at home could see annual costs climb by between £20 and £50, depending on their driving habits and tariff. The rise reflects ongoing volatility in the energy market, partly driven by geopolitical tensions.
John Wilmot, CEO of car leasing company LeaseLoco, commented: “Unfortunately, the price cap change will affect those with an electric vehicle when it comes to home charging, and what we’re seeing is a result of the ongoing conflict in the Middle East.” He advised drivers to consider adjusting their charging habits to mitigate the increase.
Strategies to Reduce Costs
Wilmot suggested that drivers should become “savvy about their charging times.” He noted that overnight charging remains cheaper, making it worthwhile to charge during off-peak periods. WhatCar? also recommended considering a dual-fuel tariff and charging only during off-peak hours to avoid peak rates, which can be significantly more expensive on some dual-rate tariffs.
Additionally, WhatCar? urged drivers to shop around for better tariffs and explore workplace charging options to reduce home electricity costs. LeaseLoco highlighted the benefits of smart charging features, which automatically schedule charging during the cheapest periods when the driver sets a departure time.
Growing EV Market
There are currently two million electric cars on UK roads, a number that continues to rise as more drivers switch from petrol and diesel vehicles. The price cap change is expected to affect a significant portion of these owners, adding to household expenses amid broader cost-of-living pressures.
John Wilmot added: “The reality is that prices are fluctuating as a result of the ongoing changes in the energy market and for EV drivers this means they should keep an eye on tariffs and consider a fixed plan if possible.”
