The Office for Zero Emission Vehicles (OZEV) announced a formal review on the steep increase in public electric‑vehicle charging prices, which have jumped 38% since 2021. the inquiry,backed by the Department for Transport, the Department for Energy Security and Net Zero, and the Treasury, aims to propose measures that could lower costs for motorists who lack off‑street parking.

38% surge in public EV charging since 2021

According to industry data compiled by ChargeUK,the average price per kilowatt‑hour on the public network rose by 38% over the past two years, outpacing inflation and eroding the financial appeal of electric cars. The review will dissect how higher wholesale energy prices, network fees and other cost drivers have fed into this escalation, as outlined in OZEV’s terms of reference released this week.

Philip New appointed independent chair of the review

Energy and aviation specialist Philip New has been named the independent chair, tasked with steering the analysis alongside regulator Ofgem.. The government expects New’s expertise to help untangle the complex pricing structures across on‑street, destination and high‑power motorway chargers, and to shape recommendations due in the autumn.

£1,080 annual premium for drivers without home chargers

Data from the RAC and ZapMap reveal a stark disparity: households without off‑street parking spend roughly £1,760 a year on public charging, compared with £680 for those who can charge at home. This £1,080 gap translates into a £100 higher annual cost than a typical petrol car, even after accounting for current fuel prices of 159p per litre. The review will compare these figures with home‑charging tariffs as low as 8.8p/kWh versus 54p/kWh for standard public points and 79p/kWh for rapid motorway stations.

VAT exclusion sparks industry disappointment

Industry leaders and consumer advocates have urged the government to cut the value‑added tax on public charging from 20% to 5%, mirroring home‑energy rates. However, the review’s scope explicitly omits tax policy, focusing instead on regulation, funding mechanisms, market‑based trading schemes and dynamic pricing. As a result, many stakeholders remain dissatisfied, fearing the omission will limit the impact of any forthcoming recommendations.

Will the reiew consider tax reforms?

One unanswered question is whether the government might later address the VAT issue outside the review’s formal recommendations. As the report is set to be presented to ministers this autumn, observers will watch for any ancillary policy moves that could complement the review’s findings.