New ‘energy price guarantee’ will cut charging costs

Electric car charging bay

Charging an electric car at home will be around a third cheaper under the Government’s ‘energy price guarantee’ compared with the planned price cap, according to new research.

The RAC said it will cost an average of £22.22 to fully charge an electric car such as a Kia e-Niro with a 64kWh battery from October 1.

That is nearly £4 more than under the current price cap, but around £11.50 less than it would have done under the cap announced by regulator Ofgem on August 26, which was due to come into force at the start of October.

The ‘energy price guarantee’ was announced by Prime Minister Liz Truss last week amid growing concern about the impact of the planned rise in bills.

The RAC’s Simon Williams said the measure will “significantly cushion the impact of rising energy prices affecting drivers of electric cars”.

He added: “It remains to be seen what impact the Government’s new package of help will have on chargepoint operators and the prices they set drivers, but we remain concerned about the rising wholesale costs of energy that may force some to increase their prices in the coming months.

“There’s the potential for the Government’s net-zero transport ambitions to be derailed if higher electricity prices put drivers off from switching to an electric model, which is why we have called on the Government to cut the 20% VAT rate on public chargepoints to match the 5% charged on domestic electricity.”

Electric car owners are advised to check with their energy provider to confirm the exact price of their new tariff.

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