NFDA Policy Briefing: Cost of Public EV Charging Review

Issue
Press Releases
Published
November 6, 2026

In short: the review finds that public charging has become much more expensive, particularly for
drivers without a driveway. The Government has taken forward two of its five recommendations.
The review was led by Philip New, an independent chair and former Chief Executive of the Energy
Systems Catapult. Commissioned by the Government at Budget 2025 and published alongside Budget
2026 on 28 October, it examines why public charging prices have risen and what can be done to bring
them down.

Key findings

  • Prices have risen sharply: since 2021, average public charging prices have risen by 69% for lowerpowered chargers and 94% for rapid chargers in real terms. Public charging prices are now regularly
    cited as a barrier to EV ownership.
  • Drivers without a driveway pay most: around a third of drivers have no driveway, yet 90% of current
    EV drivers can charge at home. Drivers who cannot charge at home are, on average, more likely to
    have lower incomes.
  • Why prices are high: chargers are used far less than operators planned (at only 3-7% of capacity for
    lower-powered chargers and 3-4% for rapid chargers in 2025), so high fixed costs are spread over few
    sales. Fixed electricity network charges paid by operators are estimated to be 83-283% higher than in
    2021, and most operators are loss-making. On the review’s figures, lower-powered chargers cost around
    82p per kWh to run on average (including VAT), against an average price of 54p (2025 prices), so they
    are making significant losses on each kWh sold.
  • Outlook: without intervention, the review expects charging prices to increase, and warns they are likely
    to rise from 2027 if EV uptake slows or new chargers are not well targeted.
  • The review also calls for clearer pricing, such as showing the cost of a full charge alongside the price
    per kWh, better signage to chargers, and better planning of grid connections.
  • Taken together, the review estimates its measures could cut local public charging costs by around 15-
    20p per kWh, and public charging costs generally by up to 10p per kWh.
  • The Department for Transport will set out next steps on the taskforce and the £100 million scheme in
    due course.

What this means for dealers

  • EV sales: drivers without home charging are significantly less likely to own an EV. The review says this
    group, around a third of households, must be given a compelling offer to switch, starting with the cost of
    charging.
  • Customer demand: the £100 million will help EV drivers who rely on on-street chargers from Spring
    2027, but rapid charging, which now costs more per mile than petrol at September’s prices, is not
    targeted.
  • Customer experience: the review highlights tariffs that are hard to find and compare, discounts only
    available through apps or subscriptions, chargers delivering less than their advertised power, and
    payment holds of up to £60 per charge. These are useful points for dealers advising EV buyers without a
    driveway.
  • Destination charging: the review covers charging at retail and leisure sites, where operators
    increasingly pay host sites fixed rent or concession fees. With most operators loss-making and the
    sector consolidating, dealers with on-site charging partners may see changes to these arrangements.
  • VAT on public charging: recommendations on tax were outside the review’s scope. Separately, the
    Budget confirms 20% VAT on electricity supplied through public and workplace charge points from 1
    November 2026.
  • Fleets and company cars: the review notes that tariff porting pilots abroad suggest it could also work
    for fleets and company cars.

NFDA comment: The NFDA welcomes the review’s focus on drivers without home charging. We will continue to
campaign for VAT on public charging to be brought in line with home charging, and will follow the taskforce’s work closely.

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