A fall in ultra-rapid charging costs in February means an electric car is now cheaper to ‘fuel’ than a petrol – but only at off-peak rates.

The average cost of off-peak charging has dropped from 60p/kWh to 52p/kWh

The AA’s latest EV Recharge Report shows that average ultra-rapid charging costs fell for both off-peak and peak in February. Off-peak charging dropped from 60p/kWh to 52p/kWh, while peak charging at these speeds went from 74p/kWh to 67p/kWh.

The 8p/kWh reduction in off-peak ultra-rapid charging makes electric cars cheaper to ‘fuel’ than a petrol car for the first time since the AA started running its reports – based on a Vauxhall Corsa 1.2-litre petrol and an electric Corsa-e (see table below).

But it warns that the comparison depends on the time of day and the charging provider. While some cheaper off-peak ultra-rapid charging is available from 6pm to 8pm, other chargers switch to off-peak only after 8pm.

The AA said the fall in ultra-rapid charging costs was significant heading into the summer when more cars will be driving longer distances away from home – and also for fleet drivers and businesses where ultra-rapid charging reduces travel times.

However, its latest data also reveals that the cost of slow charging has gone up, with flat-rate fixed prices rising nearly 9%, from 34p/kWh to 37p/kWh.

AA EV Recharge Report, February 2023. Flat rates;

AA EV Recharge Report, February 2023. Peak and Off-Peak rates;

‘Golden opportunity missed in Budget’

The latest AA EV Recharge Report follows the Spring Budget, which announced an extension to the domestic Energy Price Guarantee to 30 June 2023 but failed to significantly invest in boosting the public charging network.

The AA has said it’s concerned that the UK will miss its target of 300,000 public charge points by 2030 without more action to support local councils, EV charging companies and energy providers.

President Edmund King also warned that the so-called Kerb Tax remains an issue. Also dubbed the Pavement Tax, it refers to the current UK setup where public charging carries a VAT rate of 20%, but domestic energy use is just 5%. Some 40% of households in the UK don’t have dedicated off-street parking, which means they are solely reliant on the public charging network and have to pay four times the rate of VAT.

Jack Cousens, head of roads policy, said: “The Chancellor missed a golden opportunity to boost the EV revolution. With new EV sales only increasing, the Budget was the moment to significantly invest in the public charging network while correcting the ‘Kerb Tax’ of mismatched VAT rates. Meanwhile, we were keen to see the Government be more ambitious in expanding the EV charging network. With around 40,000 devices currently in the ground, we will need so see a monumental shift in installations over the coming years.”