New ‘energy price guarantee’ will cut charging costs

Electric car charging bay

According to recent study, charging an electric car at home will be around a third less expensive under the government’s “energy price guarantee” than it would be under the planned price ceiling.

According to the RAC, starting on October 1, the average cost of completely charging an electric vehicle, like a 64kWh Kia e-Niro, will be £22.22.

This is approximately £4.50 higher than it would have been under the price cap that regulator Ofgem declared on August 26 and was scheduled to take effect at the beginning of October. However, it is still less than it would have been under the current price ceiling.

Prime Minister Liz Truss unveiled the “energy price guarantee” last week as worries about the effects of the impending bill increase grew.

The action will “significantly cushion the impact of rising energy prices affecting drivers of electric cars,” according to Simon Williams of the RAC.

“We remain concerned about the rising wholesale costs of energy that may force some to increase their prices in the coming months,” he continued. “It is unclear what effect the Government’s new package of help will have on chargepoint operators and the prices they set drivers.”

“We have urged the Government to lower the 20% VAT rate on public chargepoints to match the 5% charged on domestic electricity, as there is potential for the Government’s net-zero transport ambitions to be derailed if higher electricity prices put drivers off switching to an electric model.”

It is recommended that owners of electric vehicles verify the precise cost of their new tariff by contacting their energy supplier.

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