25

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

A response document is linked to this report, dated 16 May 2025. Response attribution to this conclusion has not been verified. Read the response document.

Addressee Bodies
HM Treasury
Timeline
Recommendation age 1.5 yrs
Report published 12 Mar 2025