Source · Select Committees · Public Accounts Committee
Recommendation 25
25
Acknowledged
Drivers reliant on public charge points pay significantly more due to VAT and other costs
Conclusion
The Department expects that most people will charge their vehicles at home using private charge points, however, those reliant solely on public charging, such as those without access to off–street parking, pay significantly more to charge their vehicles. This is because the cost of public charging reflects aspects such as the wholesale price of electricity, charge point operator margins, and the difference between the value added tax charged on electricity from private (5%) and public charge points (20%). This means drivers using public charge points can pay around two to three times more to charge their vehicle than someone charging at home, depending on the type of charge point used.45
Government Response Summary
The government agrees with the committee's conclusion, stating it has appointed OPSS to regulate the Public Charge Point Regulations 2023, already monitors the cost of charging across various channels, and will continue to work with HM Treasury to understand cost variances and policy impacts on public charging prices.
Government Response
Acknowledged
HM Government
Acknowledged
4.1 The government agrees with the Committee’s recommendation. Recommendation implemented: April 2025 4.2 The department has appointed the Office for Product Safety and Standards (OPSS) to act as the regulator for the Public Charge Point Regulations 2023 (PCPR). The department will monitor compliance through reporting from OPSS. In addition, the impact of the PCPR will be assessed through the department’s Technology Tracker, monitoring of open data from chargepoints, and engagement with industry and consumer groups. The PCPR will be reviewed within five years of coming into force, as per section 13 of the Regulations, and the department will publish the outcomes of this review. 4.3 The department already monitors the cost of charging across a range of charging channels, including domestic chargepoints, and fast, rapid and ultra-rapid public charging. This is undertaken on an ongoing basis using publicly available information on electricity tariffs and data purchased from Cornwall Insight on the cost of electric vehicle charging. 4.4 The government will continue to work with HM Treasury to understand the variance in costs associated with public and domestic charging and the extent to which any change in policy might impact the price of public charging, as well as consumer demand for EVs.