EV charging costs fall again, but customers face rising costs due to VED change

New data from the AA EV Recharge Report highlights a drop in peak-time charging costs, but this improvement in running costs has coincided with an increase in road tax for electric vehicle customers.

April saw a 7p/kWh drop in peak-time on-street slow charging, continuing a downward trend in pricing for urban-based EV users.

At the same time, off-peak residential charging fell by 1p/kWh, providing further value to customers who can plan their charging schedules.

However, this positive news comes alongside a pivotal policy change: as of April 1, all EVs — including those already registered — are now liable to pay Vehicle Excise Duty (VED).

Jack Cousens, head of roads policy at the AA, said: “For the second month running, on-street residential charging has fallen meaning drivers can recharge for less closer to their home.

“This is important for those without any dedicated off-street parking, as it allows everyone to join the move to electrification.

“Unfortunately for EV drivers, the introduction of VED means that the days of free car tax are over.”

Cousens described the decision to retrospectively charge all EV owners with the same rate as those driving combustion cars as “harsh” and removes a key incentive for people looking to buy a used EV.

He added: “An annual tax saving of around £200 was not to be sniffed at, yet the unique move to hit owners in this way means people may stick with what they’ve always chosen. 

“The AA agrees that all drivers should pay something towards road maintenance, but a fairer solution would be to offer a discounted EV rate until EVs saturated more of the UK car parc.”

Key EV charging cost trends – AA EV Recharge Report, April 2025

Flat rates by charger type

Peak and off-peak charging rates

Comparison to petrol refuelling