There are many drivers in the UK who have been reluctant to switch from a traditional fuel to electric vehicle (EV), and the recent rise in energy prices could become an even bigger deterrent.
Volatile energy costs are proving increasingly difficult to manage, particularly as the energy price cap is set for a 50% increase in bills for UK households. As a result, the cost of running an electric car is (and will continue to be) significantly higher than it was a year ago.
On Friday 1st April 2022, the energy price cap rose by an average of 54% - so what does that mean for electric vehicle drivers and their charging bills?
Here at Allstar, we’re on a mission to help commercial fleets and our customers in the public sector and beyond adopt EVs in the easiest and most cost-effective way possible. That’s why we’ve pulled together everything you need to know about energy prices and how they could affect charging prices.
How much has the cost of electricity risen in the UK?
UK legislation restricts the amount suppliers can charge consumers for electricity, with price caps reviewed by the Government every six months. In February, Ofgem, Britain's energy regulator, announced that households should expect their energy bills to rise by 54%, marking a record increase.
Consequently, energy bills could rise by around £700 a year for many households. With this in mind, it’s important to understand how these costs could alter the average EV charging rate.
The average cost per kWh has now risen to £0.28p, which is up from £0.21p in 2021. Using this figure, we can calculate rough estimates for charging electric cars at home.
The average running cost of electric vehicles in 2022
It’s worth noting that costs fluctuate between charging stations, whether that be public stations, home charging stations or rapid chargers. The difference in costs between the two methods vary in accordance with numerous factors. This can include the type of charge (slow or fast charging), the hours in which the car is left to charge and the tariffs set by individual operators.
In addition to this, different VAT prices are applied depending on whether drivers charge in public or at home. As it stands, VAT on domestic electricity is charged at 5% whilst drivers that charge at a public station are charged a 20% VAT.
Here at Allstar, our customers obtain access to various tools and insights that provide information on the most cost-effective ways to charge. So you can rest assured that your fleet will get the best value for money.
We used 10 models from the UK’s most purchased electric vehicles to calculate how much a full charge would cost on average for EV drivers.
These figures are based on 100% at-home charging. The table below has full-year calculations based on one full charge a week for each of the following models and battery capacities using a standard charger.
Make and Model | 2021 weekly charge cost | April 2022 weekly charge cost | 2021 Full Year | 2022 Full Year | Difference | Battery Capacity (kWh) |
Tesla Model 3 LR | £15.50 | £22.96 | £806.00 | £1,193.92 | £387.92 | 82 |
KIA EV6 LR 2WD | £14.63 | £21.67 | £760.76 | £1,126.84 | £366.08 | 77.4 |
BMW I4 e-drive 40 | £15.86 | £23.49 | £824.72 | £1,221.48 | £396.76 | 83.9 |
Fiat 500e Hatchback | £7.94 | £11.76 | £412.88 | £611.52 | £198.64 | 42 |
Nissan Leaf | £7.56 | £11.20 | £393.12 | £582.40 | £189.28 | 40 |
Chevrolet Bolt | £12.29 | £18.20 | £639.08 | £946.40 | £307.32 | 65 |
Audi E-Tron GT Quattro | £17.65 | £26.15 | £917.80 | £1,359.80 | £442.00 | 93.4 |
Hyundai IONIQ 5 Long Range 2WD | £13.72 | £20.33 | £713.44 | £1,057.16 | £343.72 | 72.6 |
Citroen e-C4 | £9.45 | £14.00 | £491.40 | £728.00 | £236.60 | 50 |
Tesla Model S LR | £18.90 | £28.00 | £982.80 | £1,456.00 | £473.20 | 100 |
Based on the newest price cap, the average cost to fully charge a vehicle with a 60kWh battery is around £15.10 a week (based on a range of roughly 200 miles).
This would vary depending on how much of the battery drivers use, their energy supplier and tariff, whether they charge at home or in public etc. However, this is a good indicator of the cost increases EV drivers can expect.
Looking at the data, it is evident that the average EV will cost around 48% more to charge a week to fully charge their EV battery.
As we can expect, the electric vehicles with the longest ranges are seeing the biggest increase in charging costs. A Tesla Model S Long Range has an estimated capacity of 100kWh (the usable capacity averaging at 95kWh) - owners of this vehicle are currently paying almost £10 a week more since April 2022 to charge it.
On the lower end of the scale, a 40kw Nissan Leaf is now costing around £3.64 more to charge to full capacity on a weekly basis. On the surface, this may seem like a small increase. Whether or not this is a cost-efficient option will depend on how many miles per week it is driven.
Nevertheless, energy prices certainly are impacting the cost of running an electric vehicle. How much EV drivers will pay to charge up will vary between car type and the individual circumstances of the person.
Electric vehicles are still excellent value compared to petrol and diesel cars
Despite growing electricity bills making the cost of running an EV more expensive, costs are still far cheaper than fuel.
Due to the surging cost of fuel (in part due to the war in Ukraine), driving an electric car costs almost £600 a year less than driving a petrol model. Adding up bills for fuel, insurance, tax and maintenance, the average annual running cost of an electric vehicle is £1,264, compared to £1,834 for a petrol model.
It is worth noting, however, that the figures provided do not apply to every motorist in Britain, with the EV ownership costs based solely on the cost of charging at home. This is not viable for a third of UK homeowners who do not possess off-street parking and are forced to make use of the more expensive public charge point network.
Still, the high resale value and low maintenance of electric vehicles mean that EVs are frequently offered at lower lease prices than their purchase prices imply - they also tend to have lower servicing costs. The fact is that, even without these considerations, electric cars are cheaper to drive on a daily basis than diesel or petrol vehicles.
Access competitive prices through Allstar’s EV charging network
Here at Allstar, we provide fuel management and charging solutions to fleet managers in the UK. Our mission is to help the businesses of our nation migrate from fuel-combustion engines to EVs in an efficient and cost-effective way.
That’s why we created a range of EV charging solutions to help make the transition easier. Our solutions provide a one-stop shop for fleets of all sizes, offering businesses a holistic view of drivers’ charging sessions, on the road and at home with consolidated billing, accurate driver settlement, and reporting.
Charging on the road with Allstar One Electric
The Allstar One Electric card helps you streamline your operations and improve driver efficiency, on and off the road. As our combined fuel and electric charging card, our Allstar One Electric card gives you access to over 5,700 charge points across a multi-branded electric charging network, making it the ideal solution for those that have no off-street parking and/or need the ability to top up charge on the road.
There are currently 10 networks of chargers accessible for Allstar One Electric card holders. A high proportion of these stations are fast or rapid chargers - allowing you and your employees to charge up quickly with minimal disruption.
For on the road charging, Allstar One Electric customers will gain access to enhanced features on Zap Map - a leading EV charging station locator app when they lodge their card – to search, plan and pay for charging across the Allstar electric charging network. Not only does this help drivers locate the nearest chargers on our network, it also provides details regarding their individual charging speed and availability.
All transactions across all fuel types, using our Allstar One Electric card, are combined into one HMRC- compliant invoice, lightening your administrative load.
Charging at home with Allstar Homecharge
Allstar Homecharge, powered by Mina, is a solution that provides accurate payment for the costs of driver’s EV charging at home. Payments are made directly to a driver’s energy supplier for all home charging sessions, so they don’t have any receipts to submit and no ‘bill shock’, minimising administrative burden.
Our goal is to provide drivers with the best possible solutions and easiest resolutions to charging. That’s why when you choose us, you’ll benefit from a diverse selection of charging options and useful tools.
For help transitioning to an all-EV fleet, where you can benefit from simplified payments and access to our partners in the EV space, talk to us today about our electric charging card solutions.
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