Government sets out terms of reference for upcoming public charging costs review
10 June 2026
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Natalie Middleton
The Department for Transport (DfT) and Office for Zero Emission Vehicles (OZEV) have set out their terms of reference for the upcoming cost of public EV charging review.
The Department for Transport (DfT) and Office for Zero Emission Vehicles (OZEV) have set out their terms of reference for the upcoming cost of public EV charging review.
The review will explore the impact of energy prices, wider cost contributors and options for lowering these costs for consumers
At the 2025 Autumn Budget, the Government committed to reviewing the cost of public EV charging, reporting in autumn 2026.
The review will consider the impact of energy prices, wider cost contributors and options that government and industry can take for lowering these costs for consumers.
The terms of reference sets out the review’s leadership, governance, scope and outputs.
The Government has appointed Philip New as independent chair for the review, with support provided by OZEV.
The review will report to ministers in the DfT, the Department for Energy Security and Net Zero and the Treasury.
OZEV, a joint unit between the Department for Transport and the Department for Energy Security and Net Zero, is the responsible government sponsor for the review.
The review will be developed in collaboration with Ofgem, aligning with its responsibilities for energy sector regulation in Great Britain.
Where relevant policy is devolved, the review will consider impacts and outcomes with the devolved governments.
This review will examine the costs of charging electric cars and vans on the UK public charge point network, how these costs have changed in recent years, and how they might change in the future without intervention.
It will also consider the costs of charging across the entire public charging network, including lower powered on-street charging, destination charging (for example, in retail car parks) and higher powered en-route charging (for example, at motorway service areas).
Also under focus will be the costs of charging relative to the costs of fuelling internal combustion engine cars and vans.
The review will also investigate the extent to which cost savings from policy changes might be passed on to consumers that use the public charging network, including consideration of market competition.
Other areas include the impacts of possible options, and costs, on other energy consumers, plus the impacts of possible options on the costs for EV fleet operators that charge at private depots.
The study will look at the impacts of greater access to domestic charging for more drivers.
It will also propose options and recommendations for reducing public charging costs. Areas that will be considered include regulation; government funding routes and prioritisation; wider government levers and policies to address costs; actions taken by the relevant regulators; market-based trading schemes; and dynamic pricing (time of use tariffs).
Tax costs will be reflected within the report, but the review will not make recommendations on changes to tax policy. This is consistent with other such reviews “which avoid pre-empting fiscal events, where decisions on tax can be made in the round, taking into account the wider economic and fiscal context”.
Domestic charging costs are out of scope.
This review will provide a report to be published in autumn 2026, structured in three sections. The first will look at a review of the current costs of public charging, how these have changed in recent years, and the drivers for these changes.
The second section will give an assessment of how, and why, public charging costs might change in the near and medium term, to 2030, without intervention.
Finally, the report will look at what government, and industry, could do to reduce the costs of public charging. This will cover ongoing work, and recommended options to go further.
EVA England welcomed the Government’s cost of charging review and its focus on cutting costs for drivers, which are a major barrier to the transition to electric.
Vicky Edmonds, CEO of the EV member association, said: “Our own driver research shows that 75% of drivers now see public charging costs as the biggest hurdle to driving electric. It is disappointing that VAT has been left outside the terms of reference, given the clear unfairness between drivers who can charge at home and those who rely on the public network.”
But she added: “VAT is only one part of huge challenge. On its own, it wouldn’t be enough, and we need to see real structural reform that brings down charge point operating costs and that reflects a broader set of issues around pricing transparency, reliability and access to chargers, especially for renters, lower and middle-income households and people without driveways. This review must look seriously at every practical measure that can bring down costs and improve the charging experience for drivers. The transition will only succeed if public charging is not just available, but fair, affordable and trusted.”
Guy Bartlett, CEO of charging firm Believ, said the review was a critical opportunity to tackle one of the biggest barriers to EV adoption – affordability.
“While it already costs less to run an EV than a petrol or diesel vehicle, more cost benefits are essential to help drivers invest in a new vehicle.
“Today, drivers who can charge on a driveway typically benefit from 5% VAT, while those without off-street parking pay 20% on the public network, an inequity that risks slowing EV adoption. The review should also address standing charges, which weigh heavily on a pre-profit EV charging sector, and penalise it for building infrastructure ahead of demand; reform here would reduce costs for drivers and help keep the UK charging market investible.
“Public charging is a critical enabler of the EV transition, yet charge point operators have had comparatively little relief from wider energy cost pressures, so this review is an important step.”
Meanwhile, BEAMA, the UK trade association for the electrotechnical and energy infrastructure sector, warned that the Government is missing an important opportunity.
Matt Adams, head of electrical transport systems, said: “It’s difficult to see how a review focused on the cost of public charging can deliver its full potential, when it has already ruled out making recommendations on tax policy.
“Aligning VAT rates between public and domestic charging has long been one of the most widely discussed options for reducing charging costs. By ruling out tax policy recommendations from the outset, the Government risks missing an important opportunity to address one of the most persistent cost barriers facing EV drivers.
“With eVED due to come into force in 2028 which effectively increases the cost of owning an EV, now is precisely the time to be considering every option available to improve affordability. Our analysis suggests eVED could cost the UK more than £4bn a year in tax revenue by pricing drivers out of making the switch to electric vehicles.”