Drivers Face Up to £50 Annual Increase in EV Charging Costs as Ofgem Raises Price Cap

Electric vehicle (EV) owners are set to face higher charging costs starting next Wednesday following Ofgem’s announcement of an increase in the electricity price cap. From 1 July, the regulator will raise the maximum charge from 24.67p/kWh to 26.11p/kWh for customers on standard variable tariffs, potentially adding up to £50 more per year in charging expenses, according to recent analysis by What Car?.

Under the new price cap, some popular EV models will see notable cost increases. For example, charging a BMW iX3 from empty will cost approximately £28.38, up from £26.82, resulting in an annual increase of £52.12. Similarly, charging a Renault 5 will rise from £11.35 to £12.01 per full charge, adding about £22.06 annually. A Tesla Model 3, another commonly used EV, will see a roughly £1 increase per full charge.

To mitigate these rising costs, experts recommend EV owners consider alternative tariffs and smart charging habits. Switching to dual-fuel tariffs and scheduling charging during off-peak hours can help reduce expenses. Many EVs and home chargers have programmable settings to leverage off-peak rates effectively. Additionally, smart energy plans like Octopus Intelligent Go automatically optimize charging times to minimize costs.

Drivers are also encouraged to explore EV-specific energy deals, which can offer significantly lower rates. Some providers offer tariffs as low as 7p/kWh during off-peak periods, far below the standard variable rates. Making use of workplace charging options and avoiding reliance on more expensive public charge points are further ways to keep costs down.

Overall, while the price cap increase means higher annual charging expenses, informed choices and smart charging can help EV drivers manage and even reduce the impact.