The UK government has announced a review into the high and rising costs of public electric vehicle charging, a key barrier to mass EV adoption, especially for households without off‑street parking. The review, led by the Office for Zero Emission Vehicles (OZEV) in partnership with Ofgem, will examine the factors driving price increases and propose solutions to lower consumer costs, with recommendations due this autumn.

38% Surge in Public Charge Prices Since 2021

According to ChargeUK , the average cost to charge an electric car using the public network has surged by 38 per cent since 2021. The report says this rise has pushed the average annual cost for a public‑charging‑dependent driver to £1,760, a figure that now exceeds the annual fuel cost for a conventional petrol car based on May fuel prices.

£1,000 Gap Between Home and Public Charging

ZapMap analysis highlights that an EV driver who can charge primarily at home spends an average of £680 annually, while a driver who relies entirely on public chargers faces costs of £1,760 per year – a difference exceeding £1,000. the source notes that about 35 per cent of UK households lack off‑street parking, placing them at a severe financial disadvantage.

Who Will Chair the Review and Where It Will Report?

The reviiew will be chaired independently by Philip New, an energy and aviation expert, and will report to the Department for Transport, the Department for Energy Security and Net Zero, and the Treasury. According to the source, the review will examine cost variations across the entire public charging ecosystem, from lower‑powered on‑street and destination chargers to high‑powered rapid units at motorway sevrices.

Missing VAT Cut From the Review’s Scope

Notably absent from the review’s immediate scope is any examination of tax policy, despite strong industry and campaigner calls to reduce Value Added Tax (VAT) on public charging from 20 per cent to 5 per cent – aligning it with the rate for domestic energy. Advocates argue this adjustment is essential to rectify the unfair penalty on those unable to charge at home.

Three Core Areas of the Review’s Recommendations

The review’s recommendations will be structured around diagnosing the root causes of current high costs; forecasting how these costs might evolve by 2030 without intervention; and proposing concrete measures the government and industry can implement to drive prices down.. Potential actions under consideration include regulatory changes, targeted government funding, wider policy levers, initiatives by regulators, market‑based trading schemes, and dynamic pricing models.

As the source reports, the findings and subsequent recommendations will be critical for the UK’s net zero transport strategy. If public charging remains prohibitively expensive, mass EV adoption could stall, undermining climate targets.