- A rise in energy prices could be felt on the public electric vehicle charging network
- Charging companies warn of price hikes
- Network fees have increased significantly over the past three years
A number of public electric vehicle charging network providers have warned that soaring energy costs could be passed on to electric vehicle owners, as the price per kilowatt hour to be charged on the public network could rise, as companies seek to stem losses.
According to a Sky News report, there are warnings that charging companies may have no choice but to pass the costs on to drivers, with ChargeUK noting that companies are facing massive network charges which have increased by an average of 462% over the past three years.
Speaking to the media outlet, an Osprey Charging site in Wolverhampton said it had reported a 38,570% increase in its annual fixed costs since 2021, from £87 to £33,651 this year.
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“Our super-fast charging centers require very large grid connections to meet the peak demand we will see in the future, but we need to pay in full for these large grid connections today,” Ian Johnston, managing director of Osprey Charging, told Sky News.
According to ChargeUK’s 2025 white paper, the public charging network has seen a sharp average increase of 38% in prices since 2021.
The rising costs are primarily attributed to energy expenses, which now account for two-thirds of charging station operator (CPO) costs, according to EV Infrastructure News.
Additionally, the public grid is made even more expensive by the UK government’s policy levies, which add around 6p per kWh in a bid to balance out falling revenue from fuel duty.
Public charging is also currently subject to 20% VAT, while home charging is taxed at 5%.
Analysis: a no-win situation
Many public charging network operators have invested millions of pounds in infrastructure “at a scale beyond demand”, according to Osprey’s Ian Johnston.
This means that most are counting on the number of electric vehicles on the roads to continue to increase at a steady rate over the next decade, when a return on investment can begin to occur.
But it seems many are already getting nervous, as the UK government continues to move the target on electric vehicle sales quotas, pushing back its 100% zero emissions target to 2035. Only 5% of all cars currently on the road are electric vehicles.
This, coupled with the fact that fixed charges and energy prices are rising, means that costs are now, predictably, being passed on to the consumer.
Tom Hurst, UK national director of Fastned, which has a site at the Palace Grounds business park in south Lanarkshire, said the company now faces ongoing charges of £41,000 a year, almost four times the site’s rent, according to Sky News.
“Even though the station is powered by 100% renewable energy, these fixed costs, combined with higher VAT on public charging and rising wholesale energy prices, ultimately pass on to drivers.
“We are absorbing as many costs as possible to keep prices low for drivers, but policy action is needed,” he told Sky News.
The whole situation is a painful impasse, with more electric vehicle owners needed to allow these big companies to turn a profit and promote competition – and hopefully reduce the cost of public charging – but potential buyers are put off by the lack of fast and affordable charging infrastructure.
After all, the exorbitant price of fast public charging disproportionately affects the third of UK households who do not have off-street parking.
Despite the national and local EV charging initiatives the UK government has announced for April this year, it needs to get a grip on the public charging network, reduce VAT, tackle political levies and reduce fixed charges, if it has any chance of convincing more buyers to go electric.
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