EV homeowners can cost at house for 5p a mile – the way it compares to petrol

Electric car owners can currently benefit from charging costs as low as 5p a mile when plugging in at home, new research from the AA shows.

A July reduction in the energy price cap brought standard rate domestic tariff costs down, allowing EV owners who can charge at their properties to take advantage of lower energy costs.

The report shows that some drivers could be paying even less than 5p per mile if they have a special EV tariff and can utilise cheaper off-peak energy prices.

However, the super-low running costs won’t last long, with Ofgem announcing that domestic energy pricing will rise from 1 October. 

On 1 July there was a 2p reduction in the energy price cap.

This allowed EV owners the benefit of paying just 4.97p per mile to charge.

This is a huge saving over running a traditional petrol car, with the motoring group calculating the average cost per mile (based on the latest UK fuel prices) to be 12.90p – more than 2.5 times what some EV owners pay to charge at home.

It shows the dramatic decline in electric car charging costs as a result of softening energy prices. 

In contrast, in December 2022 – when the AA first launched the EV Recharge Report – the price cap level for charging a car domestically was 7.99p a mile.

The 61 per cent drop in price is even more enticing compared to high petrol prices; charging at home is at least 60 per cent cheaper than filling up with petrol.

And public charging network prices also remain static across all speeds and tariffs, in comparison to petrol prices which have risen 0.50p per litre between June and July alone.

Slow and on-street charging fell in June (as much as 8p per kWh for slow charging at peak times), while May saw ultra-rapid charging costs drop 5p per kWh at both peak and off-peak times.

Jack Cousens, head of roads policy at The AA, said; ‘Driving an EV for less than five pence a mile is a landmark moment and shows just how cheap running an EV can be. 

‘As this is the cost based on the Standard Variable rates, savvy EV drivers will have scoped out the best deals across energy providers to bring their costs down further. 

‘The vast majority of EV drivers charge at home, with just 15 per cent of their charges being carried out on the road. 

‘This helps keeps costs down further as drivers can plan their trips to coincide with the cheapest rates at their ideal location.’

While EV owners who can charge at home are currently reaping the reward of ultra-low running costs, this won’t for long.

Last week, Ofgem announced that the price of domestic electricity prices will rise – from 22.36p/kWh until 30 September 2024 to 24.50p/kWh from 1 October 2024.

However, the AA is reassuring EV owners that the situation is not as bad as feared.

The rise is scheduled to be similar to the April 2024 to June 2024 rates, meaning the per mile cost to charge from home will rise, but will still stay lower than previous winters.

Jack Cousens commented: ‘This moment [of charging price reductions] will be short lived following the news of the uplift in domestic energy prices in October. 

‘EV owners will hope that the increase in electricity prices is merely temporary, but will find solace in the fact that they are not as high as the peak costs experienced at the height of the Russian invasion of Ukraine.’

Drivers of conventional internal combustion engine cars can also expect their refuelling bills to increase. 

UK petrol prices have recently fallen to their lowest level in six months – the average price dipped to 143p a litre. This is the lowest it has been since February.

However, there are warnings that this relief will be short lived.

The AA has said drivers face ‘perma-high’ fuel costs as fears grow that the new Labour government will hike fuel duty for the first time almost a decade and a half.