Amid the energy crisis, the cost of charging electrical vehicles (EVs) threatens to sway many drivers from purchasing a clean vehicle, throwing a spanner in the works of the decarbonisation of the transportation sector.
According to the data released by RAC Charge Watch, the cost of charging an EV at a public charger has increased by 42%, from around 45p/kWh in May to an average of 63.29p/kWh. This has been a result of the ongoing energy crisis impacting the UK’s economy due to high wholesale gas and electricity prices.
While the government has stepped in to provide support for domestic electricity users – setting a cap of 34.0p/kWh for electricity and 10.3p/kWh for gas from October – no such cap limits the growth of EV charging network rates. There are now fears that more chargepoint operators (CPOs) could further increase the price of EV charging as a result of high wholesale prices therefore, and potentially reduce public interest in EVs.
A primary issue with the cost of EV charging continues to be the VAT charge allocated to public charging, which stands at 20%. A number of companies, including the RAC, have been advocating for this to be lowered to 5% via the FairCharge campaign. This could help reduce the soaring costs associated with charging EVs.
But how have EV charging prices overall been impacted since the start of the wholesale gas crisis last year?
GRIDSERVE
One of the most prominent EV charging companies in the UK, GRIDSERVE, has around 398 rapid chargers at the time of writing. A core aspect of this charging network is that it is powered by 100% renewable energy and thus the energy entering vehicles is clean and green.
Despite this, the wholesale gas crisis has seen GRIDSERVE’s EV network average price go up for its rapid chargers as Britain’s marginal pricing system has seen electricity prices across the board grow.
In Q1 of 2022, the networks charging costs for its rapid chargers stood at 45p/kWh. However, as the cost of energy has surged entering the winter months, current prices stand at 65p/kWh standing just higher than the RAC’s average cost of 63.29p/kWh.
A statement from the company read: “Unfortunately, whilst we are continuing to take multiple measures to keep costs low, and we have been able to hold our pricing to levels below many competing EV charging networks, these are unprecedented times for inflation, energy prices, supply chain costs and exchange rates.”
GRIDSERVE is continuing to expand its EV charging network and is one of the major players within the market. It is expected that further chargepoints will be online by the end of the year.
Osprey Charging
Osprey Charging, with a network of 343 EV chargers, has also seen its prices surge due to the ongoing energy crisis. The firm confirmed it had set its price at 79p/kWh from November despite increasing the price of its rapid charging to £1/kWh in September due to “extraordinary circumstances”.
In August 2021, the company increased its prices from 36p/kWh to 40p/kWh. At the time it told Current± that this was due to a mix of wholesale prices as well as the confirmation from HMRC that VAT on the electricity used for EV charging should be 20%.
Announcing the recent price hike, Ian Johnston, CEO of Osprey said: “Of course we want to reduce these prices if we are able to do so. But until we know about the government support scheme, we have no choice but to increase our pricing.”
ESB
Prices for charging on ESB’s network have risen in it operating areas of Ireland, Birmingham, Coventry and London in recent months – with this also attributed to the wholesale cost of electricity.
For the firm’s rapid chargers in Birmingham and Coventry, on a pay as you go basis, the price has increased from 45p/kWh in Q1 of 2022 to 55p/kWh. Without a recent update on the pricing of its EV charging network as we approach the winter, there is every chance this figure could increase.
The price refers to ESB’s network of 190 rapid and ultra-rapid chargers. Much like Osprey Charging and GRIDSERVE, the network is powered by 100% renewables and thus the surge in demand for clean energy has had an impact on the pricing.
Current± reached out to ESB to find out more and whether the energy crisis could prompt the energy company into updating its prices and increase its cost p/kWh. ESB “politely declined” to disclose any information.
Mer
Of the EV charging firms analysed, Mer has the smallest number of rapid and ultra-rapid chargers with a total of 67. However, this is still a substantial amount, and this figure is expected to increase in the future as EV adoption soars.
The company revealed this year it would provide over 300 chargepoints at British Garden Centres as part of an agreement, with the rollout due to start from September 2022. The partnership is to provide fast, rapid and in some locations ultra-rapid charging, ranging from 7kW for hybrid drivers up to a maximum of 250kW.
On the costs side, in Q1 of 2022, Mer’s network charged drivers 43p/kWh if they were guests to the EV network. This has increased to 49p/kWh at the time of writing. Its EV network is also powered by renewable energy and thus, much like ESB and others, has seen its prices rise as a result of the ongoing crisis.
Ionity
Ionity has seen consistent prices throughout the energy crisis when it comes to its EV charging network. The company has two payment options: IONITY DIRECT and IONITY PASSPORT.
DIRECT requires no registration and no subscription, charging drivers 69p/kWh – a figure that has stayed consistent since August 2021.
PASSPORT is a 12-month subscription at £16.99 a month, and charges drivers 35p/kWh.
InstaVolt
InstaVolt has also seen its prices increase amid the energy crisis. In August 2021, the firm charged 40p/kWh, which then increased to 57p/kWh in Q1 of 2022. This figure has now risen again to 66p/kWh.
This could be of concern to EV drivers with InstaVolt having the largest number of rapid or ultra-rapid chargers on our list. The company has a total of 880 chargers currently in operation across the UK and thus caters for a large segment of the market.
With no stability in sight for the UK, it is expected that the high costs will continue to remain high throughout the winter and well into 2023.
Upon raising the price of its EV network in May 2022, Adrian Keen, InstaVolt’s CEO, said: “Electricity is by far our greatest cost, and the volatile energy market and record high inflation means we face no choice but to pass on some of these costs to consumers. We have tried to minimise how much we pass to consumers and absorb costs where possible.”
Current± reached out to InstaVolt for comment on the ongoing crisis however received no response.
