Drivers without a driveway could pay two to three times more for electric vehicle (EV) charging, according to Majid Ismailzada, director of GM Direct Hire. He warned that some EV drivers are paying as much as petrol vehicle owners due to high public charging costs.
Charging Divide Exposed
Ismailzada said: "My drivers live the charging divide every day. A driver with a home charger fills up for pennies; the driver in a flat with no driveway is paying two or three times more at a public rapid charger for the exact same miles. That's not a lifestyle choice, it's a postcode lottery that's quietly deciding who can afford to go electric."
The Labour government's decision to remove VAT from household electricity bills from October could widen the cost gap between homeowners who can charge EVs on their driveway and those who rely on public charging. Under the changes announced by prime minister Andy Burnham, the current 5% VAT rate on domestic electricity will be removed for six months, reducing the cost of charging an EV at home.
Cost Comparison: Home vs Public Charging
Drivers using off-peak home charging tariffs could see running costs fall to around 1.5p per mile, according to industry estimates. However, households without off-street parking will continue to pay substantially more. Public charging remains subject to 20% VAT, with rapid charging potentially costing around 16p to 20p per mile, depending on the vehicle and charger used.
Ismailzada added: "People assume the barrier to EVs is the car. It isn't anymore, it's the charging. We run a mostly electric fleet, so I see the numbers weekly. Public rapid charging can cost more than petrol once you're paying up to 89p a unit, and that's before you factor in broken chargers, five different apps and queues at peak times."
Impact on Working Drivers
For a private hire driver doing 800 miles a week, a bad charging setup can wipe out a day's earnings. Ismailzada concluded: "If the government wants working drivers to go electric, affordable street charging has to come first."
